FNCA Questions and Answers

We collect your social security number (“SSN”) as part of our identity verification program.

We need to verify the identity of each customer when we create a transaction, or loan, for in order for us to more successfully manage risk and to comply with anti-money laundering laws. Generally any company that sells products or services that require notification to the IRS, including investment advisors, banks, real estate purchases, or any financial transactions over $10,000 should collect this information.

Please be assured that we do everything possible to protect the information that we receive from our customers. We consider all customer account information to be private and confidential. To protect the security systems and policies that we have in place, we cannot disclose any details about these policies. We are using the most secure protection software available, as well as following all official consumer protection laws and guarantees. Additionally, all of our Customer Service Representatives are trained to respect customer privacy as well as to abide by our internal security systems.

The information available here is presented for educational and reference purposes only. They do not constitute, and should not be construed as, legal or financial advice. Any legal or financial principles discussed here are for general information purposes only and may differ substantially in individual situations and/or in different states or countries. For specific legal or financial advice, please consult a licensed attorney or a financial professional. First National Capital Advisors does not control or guarantee the accuracy of any information provided through external links from the articles on this website to any other website, nor does our privacy policy apply to any personal information that may be collected via the external links.

Know Your Customer (KYC) is a critical process in the lending industry, ensuring that financial institutions verify the identity of their clients and assess their risk profiles. By implementing KYC, lenders can mitigate fraud, comply with regulatory requirements, and make informed lending decisions.

KYC involves collecting and verifying customer information, such as government-issued IDs, proof of address, and financial history. This process helps lenders confirm the legitimacy of borrowers and detect potential red flags, such as suspicious transactions or links to illegal activities. For borrowers, KYC ensures a secure and transparent lending environment, fostering trust in the financial system.

In the digital age, KYC has evolved with advancements in technology. Automated KYC solutions, powered by artificial intelligence and machine learning, enable faster and more accurate verification processes. These tools reduce manual errors, streamline onboarding, and enhance customer experience while maintaining compliance with anti-money laundering (AML) and counter-terrorism financing (CTF) regulations.

For lenders, robust KYC practices are essential to minimize risks, protect their reputation, and avoid hefty regulatory penalties. For borrowers, it ensures fair access to credit while safeguarding their personal information. Ultimately, KYC is a cornerstone of responsible lending, balancing security, compliance, and efficiency in the financial ecosystem.