What is KYC and AML?
Regulation
KYC (know your customer) is the set of checks confirming a person is who they claim to be. AML (anti-money laundering) covers the controls to detect and report suspicious activity. Both are regulatory obligations prior to granting credit.
Why it matters
Without verified identity, any risk assessment rests on a false premise: it does not matter how good the policy is if the applicant is not who they say they are.
In a digital process these validations must be resolved inside the same flow and in seconds, or they become the onboarding bottleneck.
- A regulatory requirement prior to the credit decision.
- Identity and watchlist validation inside the flow.
- Every check must be recorded for audit.
Common questions
Does uFlow perform identity verification?+
uFlow orchestrates validations from specialized providers inside the decision flow: it requests them, combines their results and decides with them. Biometric or document verification is handled by those providers.
Related terms
Decision traceability
Decision traceability is the ability to reconstruct, for any given case, which policy was applied, on what data, which version was live and what outcome it produced. It is the baseline requirement for auditing, explaining and defending a credit decision to customers and regulators.
Model risk
Model risk is the exposure to poor decisions caused by flaws in the design, data or use of a scoring model or credit policy. It is mitigated through governance: independent validation, versioning, performance monitoring and full traceability of every change.
Back to the full glossary.
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