KYC verification process explained

What is KYC Process and what is short history around customer verification

KYC stands for “Know Your Customer,” and it is a process that allows businesses to verify their customers’ identities. This procedure is commonly used by financial institutions, banks, and other regulated entities to ensure that they are dealing with legitimate customers and that they are in compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) regulations.

Typically, the KYC process entails gathering and verifying information such as the customer’s full name, address, date of birth, and government-issued identification number (such as a passport or national ID number). This data is then cross-referenced with databases and public records to confirm the customer’s identity and address.

In some cases, organizations may also require additional information or documentation, such as proof of income, source of funds, or business registration documents, to further verify the customer’s identity.

The KYC process is designed to safeguard organizations against financial fraud, money laundering, and other illegal activities by ensuring that they have a complete and accurate understanding of their customers and their financial dealings. Organizations can also better protect themselves from legal and regulatory risks by verifying the customer’s identity.

Sportsbook industry

KYC (Know Your Customer) is common in the sportsbook industry and banking sector. This means it’s highly regulated by the state laws how the customers are threated. It is a practice that started to become widespread in the early 2000s and has been growing in importance ever since. The main reason for its implementation is to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

KYC processes help to prevent money laundering and financing of terrorism by ensuring that the identity of customers is verified and their financial transactions are monitored. This helps to ensure that the source of funds is legitimate and that the customer is not involved in any illegal activities.

In the sportsbook industry, KYC is important because it helps to prevent the use of sports betting for illegal activities like money laundering. The same is true for the banking sector, where KYC helps to prevent banks from becoming involved in illegal financial transactions.

KYC is now a legal requirement in many countries, and businesses that do not comply with KYC regulations can face significant fines and legal consequences.

Required steps required to complete KYC process

  1. Social Security Number
    When your total redeemed Fliff Cash exceeds $600 we are required to verify your social security number; a copy of a utility bill may also be requested.
  2. Verify Your E-mail
    This helps us to check that you’re really you. This is a one time process and it should take only a few minutes!
  3. Verify your Phone Number
    As the name suggest you will be asked to verify your phone number.
  4. Verify your identity
    Mandatory step to complete when withdrawing the money from your Fliff account. However, there are 2 stages of this process required. One for the very start and second time when you will be withdrawing larger amount from your account. This helps you and Fliff to protect your account from fraudsters.You can verify your Driver’s license, Passport, Identity card

Your Data is Being Reviewed

Once verification is completed you will come into Review status from Fliff. What exactly this means for you? Also, Fliff employees are reviewing your account. This usually only takes a few minutes. If it’s taking longer, you can always write to Fliff Support: support@getfliff.com

KYC Providers and how they operate

KYC (Know Your Customer) providers and companies are organizations that specialize in verifying the identity of individuals or businesses in a variety of industries, including banking and sports betting. These service providers use a combination of electronic and manual methods to verify their clients’ identities, such as conducting background checks, reviewing government-issued IDs, and confirming residential addresses.

KYC providers must follow strict data protection regulations, such as the General Data Protection Regulation (GDPR) in Europe and the Gramm-Leach-Bliley Act (GLBA) in the United States, when handling data. They are in charge of ensuring the security of client data, which includes measures such as encryption, secure data storage, and strict access controls.

KYC providers frequently collaborate with government agencies, such as the Financial Crimes Enforcement Network (FinCEN) in the United States and the Information Commissioner’s Office (ICO) in the United Kingdom, to ensure that their services comply with relevant laws and regulations. They may also enter into contracts with industries such as banks and sportsbook operators to provide clients with verification services.

Some of the KYC providers:

  • https://onfido.com/
  • https://www.trulioo.com/
  • jumio.com
  • more of them you can find here

Personal data concerns

During the KYC (Know Your Customer) process, individuals provide personal information, such as their full name, date of birth, and government-issued identification number (such as a passport number or driver’s license number). This information is collected and verified by the KYC provider or financial institution to ensure that the person is who they claim to be and to prevent fraudulent activities such as money laundering, terrorist financing, and other illicit activities.

The collected personal data is usually stored securely by the KYC provider or financial institution, who are responsible for protecting this sensitive information. They typically have strict data protection policies in place and may use encryption, firewalls, and other security measures to prevent unauthorized access to the data.

The laws and regulations that govern the handling and protection of personal data during the KYC process vary by country, but in most cases, the providers are required to adhere to strict data protection standards and to obtain the individual’s consent before collecting, storing, and using their personal information. In some cases, they may also be required to comply with regulations such as the EU’s General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA).

In addition, some KYC providers may have partnerships with law enforcement agencies, who may be able to access the data if necessary for the investigation of a crime. However, these accesses are usually subject to strict legal and regulatory restrictions and are only carried out in exceptional circumstances.

Arguments against KYC

KYC has its obvious benefits, but it’s still controversial for some critics. Arguments against KYC are more common in the sportsbetting world due to its history and background. Typically, most of its criticism comes from issues with privacy and cost:

  1. There’s an extra cost associated with performing KYC checks which are often passed on to the customer through fees.
  2. Some individuals do not have the documentation required for KYC checks, or perhaps do not have a fixed address. This makes it difficult for them to access certain sportsbetting services.
  3. Irresponsible sportsbetting service providers may lack data security, and hacks can lead to your private data being stolen.

Takeaways

KYC processes are an industry standard for financial services and sportsbetting platforms. It’s one of the most important functions in the fight against money laundering and other crimes. KYC checks can feel like an annoyance, but they provide a great deal of security. As part of wider AML measures, KYC allows you to place bets on sportsbetting platforms with more confidence and security.

Fliff Sportsbook is required to do Know your customer process due to the legal reasons. If you plan to use the app & withdraw the money once you win then you will eventually need to complete it. Our suggestion, do it at the very start and enjoy the app to the fullest.

Frequently Asked Questions

What happens to my data when I do KYC process at Fliff Sports Picks?

KYC providers must follow strict data protection regulations, such as the Gramm-Leach-Bliley Act (GLBA) in the United States, when handling data. They are in charge of ensuring the security of client data, which includes measures such as encryption, secure data storage, and strict access controls. So no worries. Your data is secure.

How can I trust KYC providers?

they need to do very complex process of getting licence and access to government data..

What is Fliff KYC process?

This process protects both you as a user & Fliff as a company from fraudsters, hackers and other users who want to cheat the system. This procedure is commonly used by financial institutions, banks, and other regulated entities to ensure that they are dealing with legitimate users.

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