Accredited investor verification To Platforms From Illegal Activities is become necessary. The world is moving at a great pace towards the new ages. With the digitalization of the globe, each and every person is virtually connect with each other via the internet. New interconnecting platforms such as social media sites and applications are being develope every day. Businesses are also moving at a great pace due to the modern methods of trading and interchange. New technologies have made it a piece of cake to interact with other people and organizations worldwide. Especially, if we talk about the period of the pandemic, people switch heavily to the online platforms with their businesses and even whole startups went digital. Relying so much on the digital world the businesses are starting to make the investments digital as well. With the success rate of previous online investment and funding platforms. Such as cryptocurrency and NFTs, firms are also developing their online investment. And investor onboarding platforms.
Eliminating the Risks With Verification Of Potential Investors
The risks associate with the investment platforms are great. As the previous funding and investment platforms of crypto and NFTs have face multiple losses over the years. The amount of losses is calculate in millions of dollars affecting millions of people worldwide. According to Statista, the cryptocurrency platforms lost more than 720 million US dollars due to the cyberattack of thefts in one month only i.e. august 2021. The major concern of the investment platforms is the prevention of money laundering. Attackers always tend to use the investment funds in illegal activities of trafficking and terror financing. The AML (Anti-Money Laundering) act is follow by businesses to protect their online platforms and prevent scams of money.
The Accredited investor verification service plays a major role in identifying the real and potential investors from the fake and forged ones. The Accredited investor verification process is carried out in compliance with the AML/CFT laws to verify the identity of the investor before letting them inaugurate the funding process.
Investor Due Diligence Regulations
In order to safeguard the assets and funding generated by business investments the Accredited investor verification process of the KYI (Know Your Investor) check is follow. The KYI process is a complete identification operation for the verification of the user. Who is willing to invest in any business project. With this check, the credibility is assured which protects the business and increases the trust levels for future engagements.
Verifying Investor Background
The KYI check is made to verify the investor from the start to the point where they opt for business investments. The KYI check provides efficient accredited investor services. The background check is carried out as the first step of the verification cycle. Businesses verify the background of the user and look for all the possible flaws and issues in the previous investor fundings and investments. The background evaluation of the investor provides a brief idea about the investor’s knowledge of the business and also validates the level of performance. Businesses that involve high amounts of investments also involve other legal authorities in the process of background checks, this can include the previous organizations the investor has serve before to eliminate the risks of fraud and fake identity. The background evaluation is complete successfully when businesses declare the past record of the investor crime-free or accurate. Accredited investor verification used many companies for their benefits.
Verifying Investor Documents
The investor is further analyze by the verification of their documents. This evaluation requires the investors to upload all their legal paperwork to the KYI verification solution system. The documentation includes all the files which prove the user identity, for investor solutions the documents are previous banking and transactional statements, the investment filings and records, and other financial documents that indicate the investor’s financial status. The documents are evaluated by modern-day technologies which automatically check and verify the data inside the documents. AI and OCR solutions are top-of-the-line technologies for this purpose. Document verification marks the investor as secure for participating in any business investments.
Verifying Investor Biometrics
The investor is then evaluated in terms of their biometric characteristics that make sure the real accredited investor is accessing the platform from the backend. The system always requires the biometric assessment of the user at every instance of logging into the system. The biometric verification includes the face scan of the user or fingerprint impressions in some cases. With biometric evaluation, the investment system is made secure from cheaters and fraudsters as the biometric characteristics are free from theft and stealing attacks.
The online investment platforms are efficient and provide ease of access to everyone still, like every other platform they face the risks and threats of scams and attacks from unauthorize sources which can affect the whole phenomenon of digitalization. To safeguard themselves from these risks and threats the businesses
implement strict identification principles to verify the users logging into their investment systems. In simple words Accredited investor verification is very necessary.
Also have a look on this Press Release.