KYC gets harder - particularly for SMEs

DocFox gives SMEs a novel support tool in ongoing anti-money laundering battle.

Updated reporting requirements in terms of money laundering and terrorist financing controls can prove complex and costly for small and mid-sized enterprises, and this presents a significant business risk. This is according to Dylan Edel, sales executive at DocFox, who was speaking at the opening day of Finance Indaba Africa in Sandton on 3 October.

DocFox is a regtech solution – described as a particularly dynamic sector in the FinTech space. The solution seeks to simplify FICA compliance through automated document collection and verification, sanctions screening and risk rating tools.

Dylan said: 

“With FICA changing from a rules-based to a risk-based focus, you no longer have the ability to do ‘simple FICA’ – now you must look at sanctions lists, there are around 900 lists you need to check daily, and you have to consider risk ratings.”

This can present a challenge for smaller businesses, which are often more likely to be targeted.

“We help make money laundering a thing of the past. But we believe money laundering can only be curbed if SMEs have the same ability to do Know Your Customer (KYC) as large enterprises do. So DocFox can be turned on overnight for even the smallest business, to support KYC.”

DocFox’s mission to end money laundering has seen it develop a digital KYC platform that allows businesses to rapidly onboard, risk rate and verify customers of all sizes and complexity.

 

The solution also offers sanctions screening and even stays abreast of existing customer status, continuously screening lists around the world and alerting users to both exact and “fuzzy” matches, as well as to adverse media coverage. To support risk ratings, DocFox digests each organisation’s risk framework and allows users to rate risk.

“If you use a solution like DocFox, you can prove you have made a best effort in terms of KYC. You can enhance your business and do ethical business, even if it’s a small business,” Dylan says.