Sumsub, a tech company that helps businesses stay compliant and fight digital fraud, has recently published its: “KYC guide for trading  industry: balancing compliance and pass rates”.

The guide offers actionable solutions for three main challenges facing trading companies today: 1) compliance with KYC/AML regulations; 2) building the onboarding process to quickly verify users and reduce drop-offs; 3) maintaining a high level of fraud protection. 

Compliance with local KYC/AML requirements is critical for trading companies as they are particularly vulnerable to money laundering and terrorist financing, fraud and regulatory fines. Based on Sumsub’s certified legal team expertise, the guide dives into the regulatory specifics for trading platforms across different regions and countries, describing two different approaches to compliance for licensed and non-licensed brokers.

Building effective KYC flows is another big challenge for trading platforms. If a broker is obliged to perform multiple user checks, it’s important to make them as efficient as possible to keep pass rates high. Sumsub’s guide shares best practices for building verification flows in trading with a close look into implementing level-based verification.

The guide also shares real-life cases with Sumsub’s clients, including Exness, INGOT Brokers and Xena Exchange, who achieved 97% hit rates and two-minute median onboarding time thanks to level-based verification and Sumsub’s strong legal support.