You may have heard of the term "Know Your Customer" (KYC), but how does it work in practice, and what does it mean for you?
This article explains how we use KYC to keep your data private and your money safe.
What is Know Your Customer?
KYC is a verification process in the financial industry. It's a necessary process for all financial institutions, such as banks or money transfer companies. If you have ever opened a bank account or applied for insurance, you have been subject to KYC checks.
KYC is a set of rules that help companies to:
- Verify the customer identity
- Ensure that customers meet the acceptance criteria to use a service
- Detect potential illegal activities
Businesses are responsible for building their KYC checks based on global and national standards and developing suitable verification processes for their customers, services and industry.
A company failing to follow the KYC regulations risks losing licenses, as well as substantial fines.
Who is responsible for KYC monitoring?
A company that knows its customers can also better protect them. There are usually entire teams dedicated to monitoring transactions and detecting suspicious activities.
At the WorldRemit, such teams are:
- Transaction monitoring specialists
- Compliance team
- AML specialists
- Fraud specialists
- Risk management
- Customer service
Why is KYC important and what are the benefits?
KYC helps to separate legitimate transactions from any suspicious activities.
Thanks to eKYC, we are able to cut the cost and time needed to identify our customers. We can build services that make the lives of our customers much easier.
We understand that money is needed with your recipients as soon as possible, and eKYC helps us deliver on our promise of a fast and convenient money transfer service while offering competitive prices.
Here are examples of how we use KYC in practice:
- Prevent identity theft and money laundering
- Detecting criminal activities or buying illegal goods
- Protecting you from scams
How do we verify your identity at WorldRemit?
The remittance industry, previously dominated by offline money transfer companies, shifted from manual KYC checks to an electronic process, so-called eKYC.
In the majority of cases, we do all the work for you. We request all necessary information (like your name or date of birth) when you're creating a transaction.
Our system reviews your information automatically and determines the potential risks of releasing your transaction.
Here are a few tips to help you get verified faster:
- When you're creating a WorldRemit account, use your full name as it appears on your ID document
- Make sure that your date of birth is correct
- Fill in your current residential address, and, if possible, use our address finder
- Include your phone number so that we can get in touch in case of any discrepancies
What if you didn't pass KYC?
If there are any discrepancies, or if you don't have enough data available in your country of residence (for example, if you've just moved into the country), we request additional information.
Common reasons for not passing the KYC checks:
- Incorrect details (name, date of birth or address)
- Can't provide proof of address
- Low quality of documents provided
- Unclear purpose of the transaction
Find out what information we need from you here.
Is your data safe with WorldRemit?
Yes. Protecting your data is our highest priority. Over the past ten years, we have proudly earned a reputation for being a trustworthy and secure money transfer service. Our procedures and policies keep your data confidential and your money safe.
We operate as an Authorised Electronic Money Institution, regulated by the Financial Conduct Authority.
Following the GDPR legislation, we also need your consent to store and use your data. If you give us your consent, we're also obliged to follow strict rules to keep your data secure.
Please find out more about our security processes here.
And remember, at WorldRemit, we will never:
- Create transactions on your behalf
- Request your debit/ credit card details over the phone, email or text
- Ask you to share your login details with us
For more information, check our Privacy and Security page.
How to get started with WorldRemit
Wherever you are in the world, you can sign up with WorldRemit on our website or after downloading the WorldRemit app available on:
Find all the tips you need on the WorldRemit sign up process on our Getting Started page.