Features of KYC and AML customer verification methods

The AML method represents principles aimed at countering various money laundering, including those that were obtained illegally. Also, with the help of this system, they actively counteract the financing of terrorism and the creation of weapons designed to massively exterminate the inhabitants of the country.

This system is very similar and by and large complements the previous one. So, it is aimed at storing information about customers, data about what transactions they made, what income they receive and from where.

Unlike the relatively new KYC method, this system appeared in 1989 in Paris. It quickly became international in nature and included global standards that do not allow to commit and carry out processes aimed at money laundering and sending them in support of terrorist regimes.

As mentioned earlier, these two systems complement each other. So, AML uses algorithms from KYC in its work, the second system is, as it were, part of the first. This will allow storing data about people, as well as transferring them between departments and organizations, tracking all financial transactions made by the client.

The world of cryptocurrency also has certain systems that allow you to track transactions. So, for example, you can perform such a popular procedure recently as checking the bitcoin address on one of the most the popular services, specially created for this.

KYC is one of the principles by which various financial institutions operate. As part of this method, it is necessary to fully identify a person even before he can start performing any financial transactions.

This concept first appeared in 2016. Today, the method is very popular among many countries of the world, as well as among cryptocurrencies. It has already proved its high efficiency in terms of reducing the level of corruption, bribery, reducing risks to financial organizations, and so on.

This method of identification works by using specialized software, which conducts the identification process. It reveals the degree of risk of the client. Since everything happens automatically, the human error factor in this case is minimal.