Know Your Customer – Is It Really Effective Or Just A Norm?

Finding out about the customer is still a problem in certain regions of the world.

In the wake of unscrupulous incidents, such as duplication, corruption, terrorism, and all sorts of suspicious activities, agencies worldwide are taking efforts to prevent such incidents.

But, it has also been a concern that what if the denied parties or politically exposed persons make a dud out of these preventive measures? How can we find solutions to these anomalies?

The KYC or Know Your Customer is an effective step for checking right at the step. Here, the credentials are verified before signing any deal. Whether it’s a defense deal or a technology transfer, KYC has to be verified before a deal takes off.

Given the emphasis on KYC or Know Your Counterpart, there’s always a lingering question about the authenticity of these claims. One can question that whether it is effective or not? If yes, then up to what extent?

Fortunately, trade compliance consultants readily understand the sabotaging efforts of suspicious people and have taken promising steps to block them. Not just a mere improvement in the technology, but an overhaul of screening procedures bring a sea change in preventing deals with banned entities. It takes a huge effort in designing stricter screening controls and measures for identifying the unwanted entities.

As an exporter, you may have been privy to the US export regulations and outcomes of violations. Consulting a trade compliance expert in these matters help you avoid any untoward violation of export regulations.