Electronic identity verification (EKYC) is one of the core components of modern KYC and AML/CFT compliance. It is the part of the process focused solely on confirming who the customer is—using digital tools, authoritative data sources, biometrics, document checks, and liveness verification. EKYC does not replace full KYC, customer onboarding, CDD/EDD, or AML program design. It is simply the verification layer that feeds into all of these.
EKYC and AML/CFT Compliance
From an AML/CFT perspective, EKYC is about verifying identity in a way that meets the legal standard for the jurisdiction you operate in. This includes:
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verifying names, dates of birth, and identifying details
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validating identity documents through digital or manual methods
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using biometric checks (selfie match + liveness)
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matching details against authoritative data sources
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integrating PEP, sanctions, and adverse media screening at verification stage
Different jurisdictions have different expectations, database quality varies dramatically, and some customers simply cannot be electronically verified. Businesses must therefore treat EKYC as a component of the compliance framework, not a “set and forget” tool.
We help businesses understand which EKYC methods are acceptable for their AML/CFT supervisor, how EKYC fits within the wider onboarding and due diligence obligations, and how verification outcomes link to customer risk ratings and ongoing CDD/EDD workflows.
Operational Issues With EKYC Solutions
Electronic verification works well—but only within its limitations. Typical issues include:
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low match rates for certain passports, national IDs, or demographic groups
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inconsistent database quality across jurisdictions
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document image quality and OCR errors
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API failures or latency constraints
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identity fraud methods that EKYC tools ignore
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customer drop-off due to verification friction
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mismatches between verified identity and beneficial ownership
These issues require controls, manual exceptions, secondary checks, and escalation pathways that align with the AML/CFT program and the business’s risk appetite. EKYC only works when it is supported by governance, workflows, and properly assigned responsibilities.
EKYC vs Full Customer Onboarding
EKYC verifies identity.
Customer onboarding verifies identity + risk + suitability + compliance obligations + internal policy conditions.
Onboarding frameworks cover:
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KYC & KYB obligations
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client categorisation
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CDD, EDD, SOW/SOF verification
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PEP/sanctions/adverse media screening
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product suitability requirements
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fraud prevention controls
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ongoing monitoring set-up
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record-keeping and governance
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escalation and approval processes
EKYC is only one part of this chain.
To avoid regulatory breaches or gaps, EKYC must be embedded into the onboarding process—not treated as a standalone solution.
Selecting the Right EKYC Vendor (Business-Focused, Not Tech-Focused)
Choosing a verification tool is not about the “best software.” It is about the best fit for your:
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commercial goals
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risk appetite
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AML/CFT obligations
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customer demographics
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jurisdictions of operation
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available staff and operational capacity
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onboarding architecture
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governance and control expectations
We support businesses through:
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needs assessment
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vendor comparison
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regulatory compatibility assessment
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integration planning
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workflow customisation
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linking EKYC outputs to KYC, KYB, CDD, EDD and transaction monitoring
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developing controls for exceptions and false positives
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internal documentation updates
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audit-readiness and AML/CFT program alignment
This is what turns EKYC from a “tool purchase” into an effective compliance control.
Using EKYC for High-Risk Clients
Higher-risk clients require more than EKYC:
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additional identity evidence
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in-person or certified verification
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strengthened SOW/SOF processes
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enhanced oversight
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stronger screening logic
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tighter onboarding approvals
EKYC simply helps confirm who the person is. It does not determine whether the business should onboard them without further due diligence.
Maintaining and Monitoring Your EKYC Framework
Verification rules, databases, and fraud patterns change. AML/CFT expectations also evolve. A functioning EKYC environment requires:
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periodic rule and workflow reviews
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testing match rates and error rates
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updating controls for identity fraud trends
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syncing verification outcomes with onboarding, monitoring and reporting systems
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ensuring consistent record-keeping
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integrating verification refresh requirements
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aligning processes with regulator feedback, audit findings, and internal risk assessments
EKYC is not a one-off project. It must operate as part of the business’s ongoing compliance structure.
