In the article, we will look at legal document automation through the lens of compliance management. Proof of identity checks are essential to any business that requires customer authentication in finance, real estate, and legal services, confirming the individual's identity before proceeding with any transaction or service.
However, traditional methods of verifying identity, such as manual document checks, can be time-consuming, expensive, and prone to errors. Automating proof of identity checks can streamline the process, reduce costs, improve accuracy and significantly reduce risk.
Automating proof of identity checks involves using technology to verify an individual's identity with little human intervention. Several technologies can be used to automate proof of identity checks, including biometric verification, facial recognition, and document scanning. Each technology has its strengths and weaknesses and can be used in different scenarios.
Biometric verification is a technology that uses unique physical characteristics, such as fingerprints or retinal scans, to confirm an individual's identity. Biometric verification is widely used in various industries, including healthcare, finance, and law enforcement. The technology is highly accurate and reliable, as each individual's biometric data is unique and cannot be duplicated. Biometric verification also provides a high level of security, as it is difficult to fake or tamper with biometric data.
Facial recognition is another technology that is used for proof of identity checks. Facial recognition uses machine learning algorithms to analyse and compare an individual's facial features against a supplied image, such as a driving licence or a passport. Facial recognition is highly accurate and fast and can confirm an individual's identity in real-time. However, environmental factors such as lighting or facial hair can affect facial recognition technology, reducing accuracy.
Document scanning is another technology commonly used for proof of identity checks. Document scanning involves scanning an individual's ID or passport and verifying the information against a database of known identities. Document scanning is a relatively simple and cost-effective solution, but it can be prone to errors if the scanned documents are damaged or if the data is entered incorrectly.
To automate proof of identity checks effectively, it is essential to have a robust and reliable system in place. The system should be able to handle high volumes of data and provide a seamless user experience. The system should also be able to detect and prevent fraud attempts, such as identity theft or fake documents. The Validient product does just that.
One of the key benefits of automating proof of identity checks is the reduction in costs. Manual identity checks can be time-consuming, labour-intensive, and require significant resources. Automating these checks can reduce the need for manual labour and save time and money. Automation can also help reduce errors and improve accuracy, leading to fewer costly mistakes and rework.
Another benefit of automating proof of identity checks is the improved customer experience.
In addition to the benefits of automation, some potential challenges and risks must be considered. One of the main risks is the potential for data breaches and privacy concerns. Identity verification requires collecting and storing sensitive personal information, such as biometric data and identification documents. If this data is not handled securely, it can be vulnerable to hacking and theft. Validient takes security very seriously; we have robust measures to prevent this from happening. If you have any concerns about the legitimacy of your client's documents, you can read more about how to check them here.
AML (Anti-Money Laundering) checks are essential for the fight against money laundering for several reasons:
Overall, AML checks are an important tool for businesses to prevent and detect money laundering activities, protect themselves from potential legal and financial risks, and comply with regulatory requirements. UK Government have more information about how AML affects your business, and that information can be found here and via The Financial Action Task Force (FATF) here.
Validient uses open banking to automate information collection from clients' banks to give you data on transactions, balances and financial activity, allowing you to make better compliance decisions, protect your business and understand your clients better than ever before. Our checks are designed to be quick, east and help prevent money laundering and terrorist financing. You can read more about how compliance and regulations affect your business here.
Automating identity verification or screening for sanctions and watchlists can reduce the risk of human error and increase the speed and accuracy of the process. This can help prevent criminals from exploiting gaps or weaknesses in the process and improve compliance with regulatory requirements.
Automating KYC and AML checks can be a safe and effective way to improve compliance and reduce risk. Still, it is essential to approach the process carefully and with appropriate controls in place. Validient's software is built around AML compliance and your business; contact us today to see exactly how we are the best solution. See you soon!