The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

    n-img-roi-cross

    Before You Go, Schedule Your Free Demo Today

    Valid Invalid number


    Note: Fields marked with an asterisk(*) are mandatory.

    n-exit-img-roi-cross

    Thank you for your demo request

    We appreciate your interest and look forward to discussing how our solution can meet your needs. Expect to hear from us shortly with scheduling details.

    Close

    us

    216.73.217.6

    4 Ways KYC Banking Regulations are Shaping the Future

    Kyc Banking

    Know Your Customer (KYC) regulations are vital for the banking system. Money laundering, depositing proceeds of crime/corruption or funding terror activities, are some common ways of abusing banks. KYC Banking regulations are complex, they also vary from country to country. Criminals constantly work to outsmart the system, therefore, the regulations have to evolve rapidly. This article looks at the evolution of KYC and what to expect in the future.

    Why KYC Compliance is so Difficult!

    The costs of complying with KYC regulations are high. Major financial institutions spend around $500 million every year on KYC compliance. This also lengthens the time for onboarding new customers – months in many cases. These extended wait times cost the banks dearly and frustrate clients. Customers expect swift and effortless services. If the process is long the customers do not hesitate to walk. 

    Banks need to speed up the compliance process. Modern technology is helping achieve that. KYC services integrated into the banks’ normal compliance process can shorten processing times. 

    Let’s look at four trends in the KYC process in banks, and how modern tech is ridding us of paperwork;

    1. Financial Crimes will Trigger Stricter Regulations

    When media exposes corruption lurking in the shadows, it serves as an impetus for more stringent financial regulations. This effect multiplies if a notorious politician is involved in a money laundering or tax evasion scandal. Panama and Paradise Papers leaks, the Russian Laundromat scheme, Danske bank revelations in Estonia, and many similar ‘gates’ have contributed tremendously towards tighter regulations.

    2. More Transparent Ownership 

    FinCEN CDD Rule and the 5th Money Laundering Directive (5MLD) require banks to identify and verify the beneficial ownership. Nonetheless, banks rely too much on collecting ‘beneficial ownership information’ from clients through age-old paperwork. This takes up too much time and involves frequent back and forth movement of forms. Naturally, many data inaccuracies slip in the process this way.

    Many countries are creating public records according to 5MLD with the help of technology. Remove the paperwork, manual entry, and verification, and the processing time reduces significantly. Data Science that uses Artificial intelligence (AI), machine learning, and other technologies, are making their way into the compliance process through RegTech (regulatory technology). 

    3. Data Science will improve KYC 

    Banks have a huge amount of data, which is difficult to manage. Siloed or lose KYC processes create duplicates, mistakes, cause low quality and delays. Among other solutions, APIs, third-party services, and robotic process automation are leading to better KYC research. In the future, this process will further improve. Data Science will utilize artificial intelligence systems and machine learning to collect, process and communicate data. This trio is improving KYC, the future looks promising.

    4. Streamlined Process through Automation

    Currently, there are plenty of services helping banks automate KYC compliance. In the future, managing data without artificial intelligence would be akin to going to a sword fight without the sword. For example, a state of the art solution for KYC compliance is an anti-money laundering AML check at the inception of the account. Artificially intelligent verification can check across all major black and greylists plus politically exposed persons PEP list in seconds. Then, it can accept or reject the application accordingly.  

    Criminals are getting smarter. They have to, since they must devise new ways to cheat the system. The regulations have to match if not exceed such wicked schemes. Regtech is helping banks to catch criminals. Technology is offering better flexibility and compliance for banks. Often times people misunderstand KYC, assuming that it is one absolute and complete system applied in every financial institution in exactly the same way. That is not true. Every business needs a strategy to ensure that technology actually helps it rather than complicates its operations.

    Banks are using Artificial Intelligence for Compliance

    Onboarding is key to a banks’ progress and sustainability. Automation, data science, machine learning, and artificial intelligence solutions are making KYC Banking more efficient, despite constantly shifting regulations. 

     

    Related Posts

    Blog

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights

    1. 2025 Snapshot: Why Proof of Address Matters More Than Ever In 2025, proof of address (PoA) has...

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights Explore More

    Blog

    Face ID Checks in 2025 – The Ultimate Guide to Protecting Your Business Against Identity Theft with Shufti

    Identity theft losses soared to $12.5 billion in 2024, jumping 25 percent year‑on‑year, while ide...

    Face ID Checks in 2025 – The Ultimate Guide to Protecting Your Business Against Identity Theft with Shufti Explore More

    Blog

    Biometric Authentication – How Fraudsters Try to Bypass in 2025 —and How Shufti Stops Them

    Biometric authentication is no longer a nice‑to‑have. Deepfake toolkits are available for less th...

    Biometric Authentication – How Fraudsters Try to Bypass in 2025 —and How Shufti Stops Them Explore More

    Blog

    Top 7 Trends Shaping the Future of the U.S. Gambling Industry in 2025

    Introduction 2024 was the fourth consecutive record‑breaking year for U.S. commercial gaming, wit...

    Top 7 Trends Shaping the Future of the U.S. Gambling Industry in 2025 Explore More

    Blog

    Intelligent Character Recognition (ICR) 2025: One Step Ahead of OCR

    ICR is shifting from a “nice‑to‑have” to a regulatory requirement. With the EU AI Act entering fo...

    Intelligent Character Recognition (ICR) 2025: One Step Ahead of OCR Explore More

    Blog

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense 

    From novelty to weapon, deepfakes have seen a surge in accessibility and complexity and, for unpr...

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense  Explore More

    Blog

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth

    Games of chance and wagering money have a long and illustrious history around the world, from ear...

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth Explore More

    Blog

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up?

    Growth-stage companies face a unique challenge: as their operations expand and regulations evolve...

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up? Explore More

    Blog

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights

    1. 2025 Snapshot: Why Proof of Address Matters More Than Ever In 2025, proof of address (PoA) has...

    Proof of Address Verification in 2025: Complete Guide to Compliance, Risk & Shufti Insights Explore More

    Blog

    Face ID Checks in 2025 – The Ultimate Guide to Protecting Your Business Against Identity Theft with Shufti

    Identity theft losses soared to $12.5 billion in 2024, jumping 25 percent year‑on‑year, while ide...

    Face ID Checks in 2025 – The Ultimate Guide to Protecting Your Business Against Identity Theft with Shufti Explore More

    Blog

    Biometric Authentication – How Fraudsters Try to Bypass in 2025 —and How Shufti Stops Them

    Biometric authentication is no longer a nice‑to‑have. Deepfake toolkits are available for less th...

    Biometric Authentication – How Fraudsters Try to Bypass in 2025 —and How Shufti Stops Them Explore More

    Blog

    Top 7 Trends Shaping the Future of the U.S. Gambling Industry in 2025

    Introduction 2024 was the fourth consecutive record‑breaking year for U.S. commercial gaming, wit...

    Top 7 Trends Shaping the Future of the U.S. Gambling Industry in 2025 Explore More

    Blog

    Intelligent Character Recognition (ICR) 2025: One Step Ahead of OCR

    ICR is shifting from a “nice‑to‑have” to a regulatory requirement. With the EU AI Act entering fo...

    Intelligent Character Recognition (ICR) 2025: One Step Ahead of OCR Explore More

    Blog

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense 

    From novelty to weapon, deepfakes have seen a surge in accessibility and complexity and, for unpr...

    Built for the Threat Ahead: How Shufti Delivers Deepfake Defense  Explore More

    Blog

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth

    Games of chance and wagering money have a long and illustrious history around the world, from ear...

    Who’s Really Signing Up? The Hidden Risks Behind iGaming Growth Explore More

    Blog

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up?

    Growth-stage companies face a unique challenge: as their operations expand and regulations evolve...

    When Compliance Changes Fast, How Can Growth-Stage Companies Keep Up? Explore More

    Take the next steps to better security.

    Contact us

    Get in touch with our experts. We'll help you find the perfect solution for your compliance and security needs.

    Contact us

    Request demo

    Get free access to our platform and try our products today.

    Get started