An effective eKYC process should bring together checks that answer different questions about an applicant, rather than expecting one verification step to provide every answer. Depending on an organisation’s requirements and the information available in a particular country, this can include identity-document verification, anti-money laundering checks and verification against relevant local data sources.
What checks should an effective eKYC process include? The appropriate combination depends on the organisation’s policies, risk profile, legal obligations and market. The important point is that identity verification, AML screening and local data verification perform different functions. Used together where appropriate, they can provide a broader set of information for an onboarding decision.
What does identity-document verification tell you?
Identity-document verification provides a starting point by comparing information supplied by an applicant with the identity document presented during onboarding.
Its purpose is specific. It helps establish whether the information being used corresponds with the document, but it should not be treated as a substitute for other checks an organisation may require.
For example, successfully verifying an identity document does not determine whether an AML check contains information requiring review. It also does not necessarily verify other details against local data sources.
This distinction matters because effective eKYC depends on understanding what each result actually establishes.
Why might an AML check also be required?
An AML check adds a different type of information to the onboarding process. Rather than verifying an identity document, it screens for relevant information that may need consideration under the organisation’s customer due-diligence and risk policies.
Importantly, the result is an input into a decision rather than the decision itself.
A possible name match, for example, should not automatically be interpreted as evidence of wrongdoing. It may indicate that the result needs to be reviewed before onboarding continues. Organisations therefore need processes for determining who reviews potential matches, what supporting information may be required and when an application needs to be escalated.
The appropriate approach depends on the organisation’s circumstances and obligations. The Financial Action Task Force guidance on digital identity provides further context on assessing digital identity systems in relation to the risks involved.
What role does local data verification play?
Local data verification can provide an additional point of reference by comparing submitted information with relevant records available in a particular country.
This check requires careful qualification because data availability varies between markets. A source available in one country may not exist in another, may contain different information or may not be accessible for the same purpose.
For organisations operating across multiple countries, this means an eKYC process cannot simply assume that identical verification is available everywhere. Teams need to establish which sources can be used in each jurisdiction, what information is being compared and what a successful result actually confirms.
Does every applicant need exactly the same checks?
Not necessarily. The appropriate checks depend on what the organisation needs to establish and the requirements that apply to its onboarding process.
This is why designing eKYC should begin with questions rather than technology. What information needs to be verified? What risks need to be considered? Which data sources are available in the relevant country? What should happen if a result is inconclusive?
Answering these questions helps determine which checks belong in the process and how their results should be interpreted.
What happens when an eKYC check is inconclusive?
An effective process also needs to account for checks that do not produce a straightforward result.
An identity document may not be successfully verified. An AML check may return a possible match requiring further consideration. A relevant local data source may be unavailable or unable to verify the submitted information.
These outcomes should not be treated as interchangeable. Each needs an appropriate review or alternative route based on what the particular check was intended to establish.
Defining these routes in advance can help onboarding teams understand when further information is required, who is responsible for reviewing an exception and what needs to happen before a decision is made.
How can the checks form one eKYC process?
The value of combining complementary checks becomes clearer when they are treated as parts of one coordinated process.
The organisation can collect the required applicant information, perform the appropriate verification checks, review exceptions and then use the resulting information to reach its onboarding decision. Each check retains its own purpose while contributing to the broader process.
SigniFlow has progressed its capability from KYC to a built-in eKYC module. The module expands the process beyond identity verification alone by adding an AML check and verification against relevant local data sources where these are available.
Organisations can use identity verification against an identity document as a starting point and add the other checks required for their onboarding process. The appropriate configuration will depend on their policies, risk profile, legal obligations and the data sources available in each country.
Choosing the right eKYC checks
There is no single check that answers every question involved in digital onboarding. Identity-document verification, AML screening and local data verification provide different information and should be understood accordingly.
A more effective approach is to determine what the organisation needs to know, select the appropriate checks and establish clear processes for interpreting results and handling exceptions.
To explore how these checks can support your organisation’s onboarding requirements, contact SigniFlow to arrange a demonstration of its built-in eKYC module.
