There is a lot to be found in the digital world: social media, the Chamber of Commerce, websites, press, bankruptcies and many other datasets that can be linked together. The bits and bytes fly around us, as it were. All this data forms an imaginary shell around the earth, from which an Open Source Intelligence (OSINT) tool can draw unlimitedly. It only becomes really interesting when this data is linked to local files of organizations. By making the right connections, this linked data provides valuable information.
“Smartly linking open sources with local files offers an ocean of useful information.”
The effectiveness of digital investigative work with a good OSINT tool is many times greater than traditional investigative work and can even no longer be ignored in our current society. Much research cannot even be carried out without automation. OSINT research is versatile, as a browser and a standard computer are sufficient to get the job done. That is why nowadays the government is increasingly demanding to take investigations into clients seriously. With the aim of preventing fraud, preferably nipping it in the bud. The terminology related to the “Know Your Customer” process is diverse and overlapping: COB (Customer OnBoarding), KYC (Know Your Customer), CDD (Customer Due Diligence, UDD (Urgent Due Diligence), EDD (Enhanced Due Diligence) and in these times QA (Quality Assurance) can be seen as steps within the total KYC process:
- KYC-level 1: COB
- Intake customer, where he undergoes an identification, global background check and also the risk profile is determined in addition to collecting news facts. This research can be highly automated and no highly trained employee is required to carry it out. Every customer undergoes this examination!
- KYC-level 2: CDD
- In-depth research into the background of customers and possibly companies with an elevated risk profile, naturally focused on risk (but also include the success stories for the commercial department). This is necessary when a customer belongs to the risk group and is done before doing business with the customer. Think about:
- The creditworthiness
- Money laundering
- Financing crime/terrorism
- In-depth research into the background of customers and possibly companies with an elevated risk profile, naturally focused on risk (but also include the success stories for the commercial department). This is necessary when a customer belongs to the risk group and is done before doing business with the customer. Think about:
- KYC-level 3: UDD
- Highly critical research in addition to the CDD, in which potential partners and sometimes the transactions are also vetted. With the aim of discovering risks that have passed KYC levels 1 and 2. The software allows simultaneous investigation of the same file. By working on the same research with several experienced researchers at the same time, results can be achieved extremely quickly and the importance of this goes without saying. This research can only be carried out by experienced researchers.
- KYC-level 4: EDD
- Completely comparable to the KYC level 3 research, with the difference that only one experienced researcher works on the file. So there is no urgency!
- KYC-level 5: QA (Quality Assurance)
- A good process contains a self-checking mechanism, which is especially relevant when the interests of an investigation are high. By randomly checking all levels, imperfections are discovered and the underlying software can be improved, or the instructions can be adjusted. Professional software also contains an alert function with which certain matters can be periodically monitored.
A KYC process implemented in the above manner is optimally designed. The studies are done properly and at the right time. Onboarding is fully automated, which means that the largest cost item is at least halved.
Fear of heavy fines and reputational damage is often the main motivation for financial institutions to start with a thorough KYC process. Understandable, of course. However, without this big stick, organizations would have to organize this process anyway. On the one hand to prevent them from being forced by the government, because high pressure then means that a solution must be found in the short term. Usually the cost item is higher than necessary and the result is far from optimal.
On the other hand, an organization obtains a lot of valuable information from the KYC process, with which it can optimally serve the customer and learn to understand it extremely well. Especially when the process is set up in such a way that the successes of customers are also included in the survey. It provides the commercial department with relevant, mainly positive, information with which to enter into a conversation with the customer. This leads to new opportunities and turnover.
Remarkable organizational structures can also give rise to a discussion and there are many examples to think of. Banks, insurance companies and other financial institutions will see an opportunity to polish their image with solid information and in this time where social media are leading in forming public opinion, it is worth gold.
Many parties may look up to setting up the above process as a mountain, but all levels can be set up with one and the same tool; Noctua – Open Source Intelligence.
“Noctua offers a standard solution for customization that meets every need.”
A Noctua KYC process implementation is easy to implement, easy to manage, saves costs and delivers high quality. With Noctua, KYC is one less thing to worry about.
Free to download: schematic overview of a complete Noctua KYC proces.
