What is a know-your-customer (KYC) check?

Know Your Customer (KYC) is part of an overall due-diligence program that businesses put in place to verify the identity and research the backgrounds of customers, clients and suppliers. A KYC check is the actual exploratory and verification procedure – a mandatory process that involves evaluating the potential risks for illegal activity that the relationship with your customer, client or supplier poses to your business.

With increasingly tighter regulations and more and more banks, insurance companies and creditors demanding that organisations furnish anti-bribery and corruption (ABC) information, KYC checks are more important than ever. Plus, they’re essential for your company’s peace of mind so you can feel confident that you’re doing business with reputable individuals and entities.

With a KYC check, customers typically must provide proof of identify, proof of address and sometimes other pertinent documentation. Additionally, you can check to see whether they appear on any politically exposed person (PEP) lists.

Why else are KYC checks important?

If you want to adopt a robust stance against business risk, KYC checks are key. KYC checks help protect your organisation from such dodgy dealings as fraud, money laundering, bribery, human-rights violations and other forms of corruption and crime. By conducting thorough KYC checks, you can dramatically reduce the financial, reputational, regulatory and strategic risks to your company from other entities.

Nexis Diligence+

With LexisNexis, you’ve got your KYC check bases covered.

Nexis Diligence+ is our investigative research tool for comprehensive due diligence. With Diligence®, you’ll know that your customers, clients and third-party suppliers are who they say they are and ensure that you’re complying with regulatory requirements.

The tool combines an unrivalled collection of global business intelligence and easy-to-use technology and pulls together all the information you need in one place. It enhances your due diligence practices and helps you minimise your business risk.

With Nexis Diligence+, you can:

  • monitor government sanctions lists, watchlists and PEP lists
  • retrieve executive, company and industry data
  • conduct thorough third-party background checks that draw on more than 26,000 sources, including global, national, and regional newspapers; blogs; and a news archive that dates back more than 40 years
  • access international court cases that involve bribery and corruption, so you can keep abreast of litigation that could disrupt your business
  • use the integrated Report Builder to generate date- and time-stamped due-diligence reports, so you have a verifiable audit trail to demonstrate your compliance efforts and meet regulatory expectations
  • access premium content, including millions of public and private company profiles, in-depth risk-analysis reports and biographical sources

Nexis Diligence+ helps you better understand your customers, employees and vendors and informs and improves your decision-making.

Nexis® Entity Insight

Another essential in your KYC check toolbox, Nexis® Entity Insight provides you with greater visibility into your business risk and arms you with the information you need to prevent or minimise that risk. Nexis® Entity Insight is a supply-chain risk-management tool that performs global adverse media monitoring and delivers relevant and empowering business intelligence on your supply chain and third-party network so you can make well-informed, smarter business moves.

Nexis® Entity Insight employs a PESTLE (political, economic, sociocultural, technological, legal and environmental) framework to help reinforce your company’s risk-based approach and enables you to more quickly identify risk. For organisations you’re doing business with or contemplating a relationship with, this framework looks at an organisation from numerous angles so you can keep track of these as you move forward with business decisions.

With access to a vast array of market intelligence and thousands of premium news sources typically unavailable on the open web, Nexis® Entity Insight provides you with a 360-degree view.

Nexis® Entity Insight’s user-friendly dashboard allows you to:

  • analyse a snapshot of risk levels and trending risk areas, so you can then drill down into specific risk profiles
  • manage active and pending entities, as well as the related RSS feeds (you can view these RSS feeds either individually or integrate them with other business systems, enabling you to read negative news coverage associated with each feed in real time)
  • visualise news volume for all active entity mentions, colour-coded by PESTLE category
  • identify the top 10 news volume trends among active entities and risk topics
  • monitor adverse media mentions and mitigate emerging risks

Boost your KYC checks, make smarter decisions and ultimately protect yourself from reputational, regulatory, financial and strategic threats with Nexis® Entity Insight.


Get in touch

E-Mail: middleeast@lexisnexis.com
Telephone number: +971 (0) 4 560 1200