KYC Compliance Fundamentals

Framework for Identity Verification, EDD and CDD 

Your challenge is how to perform efficient onboarding of online clients while you meet the Know Your Customer (KYC) requirements, minimizing friction, and at a reasonable cost.

Online identity verification entails a combination of technologies that range from document validation, identity data verification, and risk analysis. Then you need a business flow that allows you to correctly customize the user experience so low-risk clients move quickly, while high-risk clients are either stopped or identified. And then you have to enable your compliance and risk teams to review the results so you meet all the Consumer Due Diligence (CDD) and Enhanced Due Diligence (EDD) requirements, where applicable.
In this guide, we provide a framework that will help you think through your customer onboarding process with a focus on the functionality and the identity checks that can help you achieve it, and the KYC Process to follow for Enhanced Due Diligence (EDD)

There are 4 fundamental questions to answer when designing and implementing your customer onboarding process flow:

  1. Is the identity real? Prevents synthetic identity fraud, and bots from creating fake accounts.
  2. Is the applicant the owner of the digital identity? Prevents identity theft, account takeover (ATO), and vulnerable victim fraud.
  3. Can you do business with that identity? Comply with regulatory frameworks: Sanctions/PEPs, Age, Location, etc.
  4. What is the risk associated with digital identity? Decide whether a customer represents too much risk to your business.

This guide will show you how to answer these questions using online identity verification services, with tools that will allow you to quantify the risk score of each Digital Identity and a matrix of identity checks to keep in mind during the customer onboarding process.


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Following the fundamental concepts in this framework, and supported by our identity verification platform, you can then build a proper process for your KYC process, including activities you need to perform during EDD throughout the lifetime of your client.

We offer everything you need to perform identity validation, KYC, and EDD, to comply with your regulatory process.

Fill out the form to download the guide.







“As digital transactions continue to see massive growth, understanding who’s on the other end of the transaction is key to reducing fraud, managing risk and complying with regulations.”

“This evolution of the Acuant Trusted Identity Platform with IdentityMind positions them well in the dynamic market for identity orchestration platforms.”

Trace Fooshee
Aite Group

Senior Analyst




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