Don’t accept that cheque without running your client through KYC software.
You never know what you might find out during a know your client (KYC) verification.
The best KYC software out there is AI-driven, and that takes all the guesswork out of figuring out exactly who you’re doing business with.
How KYC Prevents Fraud
Why does it matter? Because Canada’s Proceeds of Crime (Money Laundering) and Terrorist Financing Act requires anyone opening an account where money, financial documents, or real estate change hands to verify clients’ ID and record financial transactions.
KYC standards and regulations not only verify customers are legitimate, but assess their risk and watch for suspicious activity. Using AI can’t hurt and may help. See KYC requirements for Canada’s real estate industry.
The Four Pillars of KYC and How AI Contributes
KYC software is built around client ID policy, processes, data, and technology. AI automates KYC, making it quicker and easier for lenders, real estate brokers and developers, sales representatives, or other money services businesses (MSBs) to comply. When to use know your client verification.
How to Detect Fraud in KYC Transactions
With phone and SMS “updation” scams on the uptick, MSBs have to be more diligent than ever that clients are not being tricked into:
- Giving fake lender representatives personal information over the phone or by text.
- Posting to social media accounts that can be used for identity theft.
- Clicking phishing (email) or smishing (text) links purporting to be from your business.
Best KYC Software Compared to Employee Checks
You can satisfy the three components of KYC — client identification, client due diligence, and enhanced due diligence — with AI tools. The best KYC software automatically:
- extracts information off passports, driver’s licences, or other ID
- verifies security features on ID
- checks for manipulated photos or images
- confirms a client matches their ID
- advises if you are interacting remotely with a live person
- scans biometrics (fingerprints and photos)
- confirms social media accounts
- and reviews banking information.
The best KYC software can quickly search global databases and watchlists. It analyzes behavioural patterns employees can miss and eliminates all-too-human errors. See reviews of the best KYC software in Canada.
Our assessment: KYC software is here to stay and well worth the price for the convenience it offers.
How Digital Fraud Can Be Prevented
Click these links for information on KYC fraud and the most effective ways to prevent fraud:
- Fraud detection tips from the Canadian Bankers Association.
- Interact advice on protecting digital identities.
- Realtors’ obligations for verifying identity.
- Recognize common scams.
- Report fraud in Canada.
Why You Need a Real Estate Lawyer
Mortgaging a home is a major financial transaction. Hiring an Axess Law lawyer keeps a real estate deal real. What a mortgage lawyer does.
Our real estate lawyers review the agreement of purchase and sale (APS) for essential clauses that protect your customers’ financial interests. We explain terms and conditions they may not understand. If offers to purchase or mortgage documents seem too good to be true, an Axess Law real estate attorney alerts your client.
Client hit a roadblock in their mortgage negotiations? Axess Law negotiates with the seller’s lawyer to amend the APS. We review the consequences of backing out of an agreement of purchase and sale with customers or liaise with lenders on temporary bridge financing. Questions to ask real estate lawyers. Questions to ask real estate lawyers.
When the mortgage is ready to go, our Axess Law mortgage lawyers search title to a property to ensure your customer is the new legal title holder. Ask us about adding a spouse to title. We add title insurance to a property for a small, one-time fee to protect customers from real estate fraud. Arranging the property title transfer (Ontario).
Affordable Real Estate Lawyers, Anywhere You Are
Access lawyers for less in the Greater Toronto Area, Ottawa, or anywhere in Ontario when you buy, sell, or transfer property. Axess Law’s flat fee real estate lawyers are affordable, and our rates are all inclusive (excluding taxes, disbursements, and third-party charges). Axess Law offers you only the legal services you absolutely need. Your final invoice includes no surprises or hidden charges. Your itemized statement of adjustments is explained when we deliver it, and we answer any questions you have about it.
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Book Legal Appointments Quickly
Closing real estate transactions costs less than you might expect with Axess Law. Call our 647-479-0118 lawyer line in Toronto (toll free to 1-877-402-4207) or use our easy online booking form to find an Ontario real estate lawyer. We arrange virtual video conference appointments anywhere in Ontario. You can meet in person with a lawyer at any of our conveniently located Ottawa or Greater Toronto Area law offices.
Click here to learn more about Axess Law’s real estate law services.