B-Case – How does a bank manage KYC in a B2C marketplace… by using a non-dissuasive process?

Webhelp supported a major international bank to manage all financial flows for its B2C marketplace customers through its specialised internal electronic money institution. Webhelp KYC Services carried out the entire vendor identification and onboarding process : a solution that means it was able to validate more than 10,000 vendors worldwide in just a few months.

This bank’s B2C marketplace customers offer their platform to thousands of vendors from around the world.

• This sector of activity is regulated by the Sapin II law, which targets money laundering and financing of terrorism. Non-compliance fines are on the rise and are expected to exceed $400 billion by 2020 in Europe and the US.
• This regulation requires that sellers and beneficiaries must have been formally identified by a KYC procedure (Know Your Customer) before they can operate in the marketplace.

The bank does not have an international task force to manage the KYC vendor registration process in the marketplace.

• Legal constraint: where the vendor is a legal entity, beneficiaries must be personally identified when registering and then periodically as soon as they hold more than 25% of the capital.
• The specific language and administrative requirements of each vendor’s country of origin must be taken into consideration.
• Each country has its own specific requirements regarding connections to administrative databases.
• Procedures for identifying and onboarding vendors must be fast and efficient enough not to be dissuasive, and reliable enough to comply with regulations.

In order to manage complex, multilingual and multi-country KYC procedures, Webhelp KYC Services has developed a project methodology that was rolled out in seven weeks. The organisation is based on five simultaneously processed areas: data collection (HMI), exchange security, APIs, acceptance rules, and management of reminders. Using our multilingual KYC hub, KYC identification operations can be managed in over 40 countries and in 15 languages. This takes into account each country’s specific administrative requirements and the KYC validation practices particular to the ordering parties. Generally speaking, only 55% of onboarding files are complete the first time around: Webhelp KYC Services uses a reminder program to optimise file completion.

The +: Onboarding a new vendor takes just a few minutes. Additional human verification, when necessary, is carried out in under twenty four hours.

“Unique in the market, our People & Solution procedure combines two components: a dedicated technical platform and multilingual operators trained in KYC verifications. It makes it possible to operate a multilingual, multi-country KYC service with a file rejection rate of less than five per cent.”

Hervé de Kermadec, president of Webhelp KYC Services