KYC has become a critical procedure as it helps businesses identify customers with criminal intentions that in turn helps them protect their business from illicit financial transactions. KYC also plays an essential role in eliminating risks associated with crimes such as money laundering, bribery, fraud, and more.
As regulations of legal compliance and AML have been developing drastically that involves the legal industry as well, law firms have been taking advantage of technology to handle the entire legal KYC compliance process through automation, particularly when it comes to Customer Due Diligence and onboarding that is usually time-consuming and complicated.
According to a survey by Thomson Reuters, the average length of time it takes for a customer to be onboarded is 26 days, with customers being contacted on average 4 to 5 times by banks requesting documentation. Such a long process involves room for human error that can be completely eliminated through digitization.
Digitization and automation offer multiple benefits when it comes to KYC and AML compliance and regulations. Automated KYC makes use of LegalTech and ensures that your clients meet regulatory standards without any hassle. Some of the key benefits of automated legal KYC compliance include reduced costs, increased efficiency, minimized risk, scalability, improved customer experience, freed-up capacity, and more. Most importantly, automation helps relieve customers with the heavy administrative burden of collating information, data and documents requested by banks.
Automation allows for a faster, better and thorough background checks required in legal KYC and AML compliance, hence improving the quality of results and drastically increasing productivity and saving time.