Updated: Jan 25
The ever-increasing rate of cyber fraud and identity theft has brought the reason for all financial institutions' demand for the identity of their customers. The process of identifying customers by businesses is called Know Your Customers or Know Your Clients (KYC).
The importance of Know Your Customer (KYC) verification has grown to the point where organisations that fail to meet predetermined requirements risk being punished by regulatory authorities. In this article, we would be discussing why KYC is important.
Why is KYC important in VIBRA?
The reason why we take KYC verification seriously is to prevent our platform from being used as a tool for perpetrating heinous crimes that may affect an individual, community or country.
Here are the reasons we are mandating at least a Level 2 KYC verification before you can perform some transactions:
Terrorists require financing to recruit and support members, maintain logistics hubs, and conduct operations. Since crypto allows anonymous transactions, state authorities mandated KYC on CEXs such as VIBRA to prevent terrorists from accessing financial resources through cryptocurrency.
Another crime that KYC has significantly reduced is financial fraud. Basically, it refers to a financial crime that goes beyond money laundering and financing terrorism. For instance, before KYC was properly implemented, criminals were accustomed to creating dummy accounts using fake IDs to engage in illegal operations.
Another prominent strategy employed by criminal activity to carry out its deeds is money laundering. Essentially, the phrase refers to the illicit transfer of funds. This covers drug use, extortion, human trafficking, and other offences. Dummy accounts are used by criminal organizations to save money, which is then distributed evenly to ease suspicion. The funds are subsequently illegally transferred to local or offshore accounts for money laundering.
Money spent to buy gold, jewellery, and artwork that has been stolen is a good example of this. These products could afterwards be traded for cash in a legitimate transaction.
One important issue KYC addresses is identity theft. In the past, fraudsters could simply use a false name and address to conduct business with financial institutions because there were no efficient measures in place. However, when technology for complete background checks evolved, thieves were forced to become more creative and utilize well-planned identity masks to evade checks.
However, VIBRA KYC is a rigorous combination of both physical and digital identity verification, aiding in the detection of identity theft at a great distance. It makes sure identities can't be readily stolen or used fraudulently.
In conclusion, with KYC, VIBRA can easily validate the identity of customers to assess risks and prevent the opening of fake accounts that may end up being a threat to humanity. Therefore, we urge our users to adhere to the need to be KYCied as it reduces the risk of terrorism and morning laundry.
Step-by-Step Guide on How to Complete Your VIBRA KYC There are three verification levels. Each level solves a limitation problem that unlocks the best of VIBRA. Level 1: This is a default KYC, it enables you to make deposits, trade, buy and save on Vibra Level 2: This level requires you to submit your government-issued documents. For our users in Nigeria, you can quickly verify your account using BVN/NIN details, to enable you to make Crypto/Cash withdrawals. Procedures for Passing Level 2 KYC Verification Step I: Tap the avatar or your photo (if you have uploaded one) at the top left Step II: Click Verification Step III: Tap Next level verification Step IV: Select your country Step V: Go to ID type and a drop-down list of the needed documents for users in your country will surface. Select the one you want to use. Step VI: Input your ID number and click submit Level 3: Verify your local bank details by adding a bank account number to your Vibra registered name. This allows for selling on the P2P and gives you access to becoming a merchant on the trading platform. Step 1: Tap Next level verification Step 2: Enter your bank account details If you want to become a merchant after passing this level you can apply and a Google form will be sent to your email. Complete the form and an email containing other procedures will be sent to you.
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