KYC and GDPR: Balance between privacy and customer verification
Antwort Law closely monitors the changes in the legislation that influence the field of financial services, especially in the context of compliance with KYC (Know Your Customer) and GDPR (General Data Protection Regulation). In a world where financial crimes are becoming more complex, companies are forced to adapt to new realities, while protecting the personal data of their customers.
The ultimate goal of KYC is to prevent financial crimes such as money laundering and terrorism financing. Companies are obliged to thoroughly check their customers, which includes the collection and processing of personal data. This can cause conflicts with GDPR, which requires a high level of data protection. Therefore, it is important to find a balance between these two requirements.
GDPR: Personal Data Protection
GDPR gives individuals control over their personal data, introducing strict rules for their collection, storage and processing. Basic principles include transparency, data minimization and storage. This means that companies should adhere to the principle of "not collect more than needed."
How to ensure a balance between KYC and GDPR?
- Transparency in collecting data: companies should clearly inform customers about what data are collected, for what purpose and how they will be used. It is important to provide clear conditions for consent to ensure their awareness.
- Data minimization: According to GDPR principles, companies should only collect the information that is necessary for the execution of KYC processes. This may include basic information such as name, address and date of birth, but exclude extra data that is not critical.
- Privacy Protection Methods: The use of anonymization and pseudonyms can help reduce the risks in the event of information leakage. In addition, companies should implement technical and organizational measures to protect customer data.
- Interaction with regulators: It is important to maintain a constant dialogue with regulators to be aware of changes in legislation. This will allow companies to adapt to new requirements and avoid fines.
How can we help?
Antwort Law has extensive experience accompanied by companies in compliance with KYC and GDPR. Our services include:
- KYC consultations - assistance in the development of domestic policies and client verification procedures.
- GDPR matching -evaluation of existing data processing practices and recommendations for their improvement.
Balancing the requirements of KYC and GDPR is not only a matching issue, but also the opportunity for companies to demonstrate their responsibility to customers. Successful implementation of these requirements can increase the trust in business and strengthen its reputation. With Antwort Law you can be sure that your business meets all international standards and is protected from risks.
Contact us to consult and find out how we can help you succeed in this difficult but important area.
Olena Deilid
Junior Legal Secretary