General
What does KYC stand for?
KYC means Know Your Customer and sometimes Know Your Client. KYC or KYC check is the mandatory process of identifying and verifying the identity of the client when opening an account and periodically over time. Financial Services may refuse to open an account or halt business relationship if the customer fails to meet minimum KYC requirements.
What are KYC requirements?
The process of “knowing your customer” ensures identity is verified either before or during the time that a financial institution starts doing business with an individual or entity and can also reference the regulated financial services practices that are used to verify clients’ identities.
It is up to financial institutions that issue credit or allow customers to open accounts to practice enhanced due diligence and verify customers to ensure they are not taking part in a money laundering scheme. They must verify where large sums of money originated, monitor suspicious activities and report material cash transactions.
Many financial institutions begin their KYC procedures by collecting basic data and information about their customers, ideally using electronic identity verification. Pieces of information such as names, passport, Medicare card, phone numbers, birthdays, and addresses can be very useful when determining whether an individual is involved in a financial crime. This verification process can go further to include facial verification and biometric verification.
Is KYC mandatory?
The KYC process is a legal requirement intended as an Anti-money laundering and Counter Terrorism Financing measure. KYC policies require “reasonable due diligence” to know (and retain) the essential data concerning every customer.
What is AML?
Anti-money laundering (AML) and Counter Terrorism Financing (CTF) describes the legal controls that require financial institutions and other regulated entities to prevent, detect and report money laundering activities. Laws against money laundering were created as far back as the 1930’s.
Directives such as the Bank Secrecy Act (BSA) of 1970 and the more recent legislation in Australia, the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 regulate the set of procedures, laws and regulations designed to stop the practice of generating income through illegal actions.
What is RegTech?
RegTech (Regulatory Technology) is the application of emerging technology to improve the way businesses manage regulatory compliance. RegTech companies can engage machine learning, natural language processing, blockchain, AI, and other technologies in order to bring the power of digital transformation to the world of regulatory compliance.
Electronic Identity Verification
How do the Electronic Identity Verifications work?
Electronic identity verification is used to match particular electronic data sources to customer details. To comply with the AUSTRAC ‘safe harbour’ rules you must verify at a minimum Name, Address and Date of Birth on two independent data sources. The AFSL may choose to apply greater rigour and additional checks as part of their KYC Program.
For example, while verifying Name, Address and Date of Birth on two independent data sources such as electoral roll and credit bureau will meet the minimum requirements, many organisations also require at least one government source such as a driver’s license, Medicare, or passport (known as the Document Verification Service or DVS).
The most common approach is to establish a ‘scorecard’ for verification against a source like electoral roll AND a government source.
What types of data sources are used for Electronic Identity Verification and how do they match our AML/KYC program?
LABform performs electronic verification on individuals based on the IDMatrix profile selected by your organisation (sometimes referred to as an organisation’s Scorecard).
All individuals in an application that are required to be electronically verified are identified in accordance with the selected IDMatrix profile.
For a comprehensive list please visit the LAB Community Knowledge Base here.
What are PEPs?
A PEP is an individual who holds a prominent public position or role in a government body or international organisation, either in Australia or overseas. Immediate family members and/or close associates of these individuals are also considered PEPs.
PEPs often have power over government spending and budgets, procurement processes, development approvals and grants. Examples of PEPs include government ministers or equivalent politicians, senior government executives, high ranking judges, high-ranking military officers, or board members or executives of an international organisation. This is not a complete list of PEPs.
Because PEPs hold positions of power and influence they can be a target for corruption and bribery attempts, and ultimately for money laundering or terrorism financing activities. This is why it’s important to use AML/CTF measures to identify and manage any such potential risks. However, you should remember that being a PEP doesn’t automatically mean someone is involved in criminal activities.
As part of your AML/CTF program, you must outline how you identify PEPs and what steps you take when dealing with them.
LAB Group Products
Is branding customisable for LABform?
Yes! Customers apply from your website to your branded version of LABform to provide a seamless customer journey.
What integrations are available?
LABform integrates with a number of industry systems and organisations including HiTrust, Pershing, Macquarie, AusieX, IRESS Xplan, Accuity, FinClear, Trulioo, Praemium, Hub24, M2, Open Markets and Pacific Systems.
We are almost always introducing new integrations and partners. For the most up to date list or to speak to us about an integration request, contact us.
Can my business integrate with an API?
LAB Group has API’s and webhooks available to integrate with your current systems, including:
- Triggering an action to your system based on events
- Our Initiate API allows businesses to initiate and pre populate aspects of a LABform application independent of the online application form
- LAB Group’s Completion API allows organisations to extract application data entered into a LABform online application. Organisations can extract application data via the Completion API and then use this to load application data into their account management, registry system or CRM.
- The Federated Identity API allows organisations to utilise LAB Groups Federated Identity capability to seamlessly log into the LAB Application Manager without a user needing to provide additional credentials.
- The Application Maintenance API allows organisations to update a LABform application with specific details, such as setting an account number or setting a specific label.
What languages does your technology support?
LABform is a multi-lingual platform and can support multiple languages. Default translations of core field are supplied to the client for review however any translations for client specific application wording must be provided by the client.
Currently the following languages are supported/activated in LABform:
- English
- Spanish
- Chinese
- Japanese
- Russian
- Bahasa
- Portuguese
- German
Customer Support
Who do I contact if I have a problem?
We have a support desk available for you to submit cases in our LAB Community with the option for technical support. This is a central location for resources, Frequently Asked Questions, Guides and a place to monitor the progress of your support cases. Go to the LAB Community here to view our Knowledge Base, Request Access, or Submit a Case.
Can I give team members different access levels?
Yes. We have different levels of access available for managing and monitoring applications within LAB’s Application Manager ensuring staff get the correct authorised access and permissions.