Lending is one of the riskiest fields to function in if you’re not sure about the borrower’s identities. Imagine that you are a lending company in a mid-size city. Many borrowers will approach your agency or company for a variety of lending needs. While you might have the monetary capacity to cater to these varied needs, your business is at risk at all times unless you get your borrower profiles officially per the legal records.
This identity verification process doesn’t need to be exhaustive (to begin with). It can be as simple as TIN Matching to help you get started and assess the risk of your borrower profiles. Other identity verification checks, such as OFAC watch list checks, sanction checks, and more will help you enhance your due diligence efforts to conclude the risk factors of a profile.
The key focus here is the fundamental check – TIN Matching.
This is your ticket to understand if your borrower’s tax details match the federal records and if they do, are they in real-time?
The following will discuss in detail the advantages of incorporating Compliancely’s highly scalable Real-time TIN Matching solutions to help identify, validate, and scale up your KYC compliance protocols.
TIN matching, otherwise known as TIN Lookup or TIN verification, is an essential identity verification check wherein the tax details of the individual or entity, along with the official name are verified per the IRS data lists. This is to ensure that the details furnished by the profile are in accordance with the IRS records.
This check allows lending businesses to understand the following.
The above perspectives will be helpful in determining the initial risk factors of a profile. Think of TIN matching as a basic due diligence check you conduct to assess the risk of your borrower (because it really is just that).
However, it is essential to note that TIN Matching alone will not be enough to conclude if a profile is credible and worth the risk. Due diligence protocol must be followed adjacent to your TIN Matching practice.
Compliancely provides a variety of TIN Matching solutions to help you check and scale up your identity verification capacities as you grow and adapt.
With standard real-time TIN Matching, bulk TIN Matching and TIN Matching API solutions, your TIN matching needs are met to suit your budget and capabilities. The best part is that you can choose to customize your TIN Matching program per your requirements so you pay only for what you utilize.
Compliancely offers real-time TIN matching solutions. This means every TIN that you check is dynamically checked per the IRS data lists to retrieve the most recent, accurate results. This enables reporting accuracy, removes the burden off your internal KYC teams, and powers your teams with automated real-time TIN checks.
What’s more? You can opt to receive accurate TIN check reports for your bulk TIN check queries, where you receive a consolidated report of the TINs checked by Compliancely, TINs that actually matched the IRS records, and the TINs that did not match the IRS records.
This gives you insights into the profiles that submitted incorrect TINs and you can choose to follow up with the rejected profiles to obtain accurate TIN information.
Compliancely’s TIN Matching enables the following: