A Step-by-Step Guide to Forex Trading Verification
The Forex trading process for businesses requires effort and sound industry and compliance knowledge to verify a Forex trading account following steps are taken into the processes:
Step 1: Select Broker and Complete the Registration Process
The selection of a trustworthy forex broker is the first step towards validating a forex trading account. Since there are a lot of forex brokers on the internet, it’s critical to conduct customer due diligence and pick one that is overseen by a respectable financial body.
After selecting a forex broker, individuals must finish the registration procedure. Giving personal information like their name, address, and phone number is typically required for this.
Step 2: Send in Proof of Identity
Once the registration process is over, individuals will need to turn in their identity documents. In the process of verification, this is the most important phase. A government-issued or authorised ID, such as a passport, driver’s license, or national ID card, will be required.
The identity document must be current and unaltered. It must also be readable and clear. Proof of address verification, such as a utility bill, statement from the bank, or any other document with name and address, will also be required by the forex broker.
Step 3: Wait for Verification
Waiting for the account verification, and once the processes are completed by the IDV service provider and the individual shows no risk, the access is granted and confirmed as soon as possible. If any sign of risk is shown, access to the account is denied, and the individual is further grown through the risk assessment or stronger verification processes.
Step 4: Start Trading and Continuous Monitoring
Individuals can begin trading FX after their account has been validated. The Forex broker will get access to the trading platform along with all of its tools and resources. It’s crucial to keep in mind that there are risks associated with forex trading. Therefore, to safeguard the business’s financial assets and reputation, the individual is continuously monitored for future risk and employs risk management techniques.
Why KYC/AML Compliance is Important for the Forex Industry?
The forex market offers great investment opportunities and is a very profitable and dynamic industry. Since many investors now primarily conduct business through forex businesses, there is a greater need than ever for oversight and regulatory actions. Significant dangers of money laundering and terrorist financing not only lead to financial crimes but also harm the industry’s reputation as a whole. Strong KYC procedures must be put in place right now to ensure a flawless customer experience whilst authenticating people prior to onboarding. The KYC system needs to be effective enough to use facial recognition and document verification to authenticate investors. This is the only way to make forex trading companies safe and transparent for investors.
Moreover, the industry must incorporate strict AML screening procedures into its system. Global regulatory agencies, including the EU, FATF, FCA, and Interpol, have amassed a substantial amount of information about money launderers in the form of Politically Exposed Persons (PEP) lists and sanctions, which need to be taken into account during the onboarding process. By cross-referencing user data with these lists, forex companies can prevent money launderers from accessing their systems.
How Shufti Pro Can Help?
Shufti Pro offers customised KYC services for the currency market, supported by its exclusive identity verification services driven by artificial intelligence. With an industry-best 30–60 second processing time, Shufti Pro’s Digital KYC allows forex merchants to complete each transaction quickly. We utilize API and SDK connectivity to seamlessly integrate with all of the Forex industry’s legacy systems. Simultaneously incorporated into our customer’s transaction platform, we can handle a huge number of verifications simultaneously. Thus the size of our Forex client’s franchise network won’t be a problem. With Shufti Pro’s KYC services, our forex clients will be able to conduct:
- Identity Verification
- Documents Verification
- Risk Assessment
- AML Screening
Modern KYC and AML procedures from Shufti Pro can assist forex trading firms in implementing improved consumer monitoring checks. KYC systems, which use facial recognition, liveness detection, and document verification to authenticate users, are driven by advanced AI and machine learning algorithms.
To facilitate our Forex clients’ digital identity verification, we offer video KYC verification in addition to basic KYC checks. Customer data records will be readily available for future use. If transactions are completed on someone else’s behalf, this data can be verified again.
Shufti Pro’s AML screening system searches data against 1700+ sanctions lists maintained by international watchdogs to identify fraudsters and criminals. With a 99.97% accuracy rate, the system can produce results in less than a second, securing forex trading companies at its finest.
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