Non-Doc Verification

Depending on the jurisdiction, the process involves either extracting personal data from a government source using an ID document number, sometimes paired with a selfie check, or retrieving necessary data from banking records through account login, such as using a utility service provider for address verification. 

Some institutions are legally required to have users upload government-issued ID documents and undergo a full verification process, often including biometric and liveness checks. This ensures the user is present, using a genuine document, and that their data matches official records and databases. 

However, in this sense, the traditional KYC process is more lengthy for the user, which means lower pass rates and fewer conversions. For this reason, non-doc verification can be a better option, especially in less strict industries. 

Yes. Non-doc verification can also be used as an extra layer of security to the primary KYC process. Primary verification methods include multi-factor authentication or a biometric check (for example, facial recognition technology, which is also popular in less strict industries). So, non-doc verification can be coupled with these and other fraud prevention measures, such as phone verification and others. 

Yes, non-doc verification can be used as a method to verify the identity of a sole proprietorship by opening a new account when no documents are available, and non-documentary KYC methods are an option. 

For primary verification, the company needs to verify the registered name, business address, date of birth of the sole proprietor, and tax number. For secondary verification, additional information and screening procedures are required, such as adverse media checks on the sole proprietor.

The Bank Secrecy Act (BSA) is the main anti-money laundering (AML) law in the US, and it specifies that customer information should be collected and verified under the Customer Identification Program (CIP) requirements. The BSA allows companies to use both documentary and non-doc verification procedures. However, if a non-documentary method is used, the company should use additional measures to mitigate risks when the customer opens the account.