Tackling Fake Entities with AI-based Know Your Investor Solution


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Keeping track of the clients with whom the company wants to establish profitable relationships is essential. Stakeholders, vendors, or any other investors who are crucial for a business’s success need to be determined under the investor verification service. Since customer onboarding is considered to be the first impression upon prospering clients, this will enable the companies to ensure a secure customer onboarding process and present the firm in a positive light in the global market. Getting funds from the right spot, in compliance with the anti-money laundering regulations, is necessary to generate legitimate revenues. Businesses can be protected from hefty fines and penalties by adopting the process of Know Your Investor through which they can onboard real clients without any risks of fraudulent activities.

Handling Fake Investors Digitally with KYI


The investment sector is becoming the prime target of lawbreakers nowadays. Multiple fraudsters can fake as potential investors, having an illicit intention to harm the business in the near future., Online investor verification solutions can come to the rescue to save companies from these misfortunes. Manual investor checks were not reliable and consumed a ton of time in the past. A lot of resources were used to conduct detailed research about a specific entity. Moreover, the accuracy rate was low due to which companies have shifted to the digital process of the Know Your Investor service. By using this procedure, businesses will be able to onboard authentic customers at an efficiently higher pace with better precision levels. As evident to this fact, as per Shufti Pro News, firms are now applying due diligence, anti-money laundering (AML) measures, and know your investor (KYI) procedures to mitigate the risk of illegal operations which may disrupt the business. 

Understanding the Compelling Process of Know Your Investor


Authentic investor onboarding is mandatory for every organization to formulate links with legitimate investors only. The need for hiring separate MLRO experts has been deduced with these investor verifications online systems. Since this process poses to be reliably better, more companies are now investing in them to guard their firms against illegal fraudsters similar to Shufti Pro Fundings. To verify investors through Know Your Investor Solution, an image document of the investor’s ID and corporate records are uploaded on the online platform. Next, the required detail is scanned and extracted. For validation purposes, the money-laundering reporting officer checks them against the global AML measures. Any suspicious activity is detected during this process. Verification results are generated and stored in the client’s back office. 

4 Factors to Consider While Choosing an Investor for a Business

  1. Checking the Level of Industry Expertise

It is vital for businesses to thoroughly conduct background research about an investor. Determining what level of industry expertise an investor is correspondingly having will help the company to formulate better relationships with them. An investor having complete knowledge of the variant factors of what the business should be protected from will save them from any uncertain failure. 

  1. Reviewing Functional Expertise

It is important to note what type of skills the investor is proficient in so that it may take the business to the next level of success. Moreover, it helps in detecting the investor authentication level as to what they pose to be are actually who they say are or not. Uncovering the value an investor can bring to a business can be crucial. 

  1. Network Research

Obtaining information about the links that an investor conspires to have will give the company an insight into an investor’s network. Any potential partner, client, or talent can be used by the corporation to strengthen its business plans and other potential areas which need improvement. This will also highlight an investor’s reputation in the social circle.

  1. Digging the Past

Before establishing links with an investor, a business should check the portfolio to detect any risks of illegal transactions. It is critical to note that an investor is in compliance with AML rules and regulations. Any link found with any high-risk individual will pose an investor as doubtful. Therefore, it is significant to keep a track record of an investor through constant monitoring to determine risks of fraud,

Wrapping it Up


Investors are becoming efficient with the advancement in technologies which is creating new opportunities for businesses to flourish. But it is necessary to verify the client before they partner up with the firm to eliminate any risks of illegal activities. Know Your Investor, is an investor verification service through which only authentic investors will be onboarded and any financial risks associated with them will be detected in a time-effective way without the need of hiring any specialists. Conducting the background research, reviewing the level of expertise, and checking the portfolios are the important factors that need to be considered while developing relationships with an investor.  


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