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

    18.97.9.171

    6AMLD of EU – A detailed insight

    6AMLD of EU - A Detailed Insight

    European union’s another anti-money laundering directive is in the pipeline. And this time the union is aiming for uniformity in AML/CFT practices across member countries while keeping up with changing international regimes.

    The estimated amount of money laundered globally in one year is 2 – 5% of global GDP, or $800 billion. And in the EU money laundering accounts for up to 1.2 % of the EU’s annual GDP, or around $225.2bn (€197.2bn) in 2018, according to a 2017 report by Europol.

    Recently the 5AMLD was implemented on 10 January 2020. The fifth directive mainly targeted loopholes in certain sectors. It addressed the loopholes in prepaid cards, virtual assets, and precious metal dealing. The major change that came due to 5AMLD is that the identity verification threshold for prepaid cards is reduced from €250 to €150. This threshold for remote transactions is €50. 

    Now the 6AMLD is in the next big change in the AML/CFT regimes of the EU. The member states are required to integrate the new directive into their national laws by December 2020 and the reporting entities are required to completely implement the new laws by June 2021. The new directive is drafted well to close any left loopholes in AML/CFT regulations.

    Key Features of 6AMLD

    The 6AMLD is not only about fulfilling minimum regulatory requirements but about changing the attitude towards AML/CFT. The reporting entities need to go another mile to play their role in eliminating money laundering.

    Key Features of 6AMLD

    1. A list of predicate offences

    A list of 22 predicate offences is provided in AMLD6. It includes offences related to environmental crime, cyber crimes, tax crime, and self-laundering. The directive includes ‘aiding and abetting’ and ‘attempting and inciting’, which means that criminal liability will be extended to people or businesses that are used in the criminal offence. Businesses will be liable for penalties if money laundering is channeled through their system due to a lack of preventive measures. 

    The offenses are clearly defined in the official journal of the 6AMLD. The reason behind this measure is to create uniformity in the AML/CFT measures of member states. Because lack of uniformity is one of the major reasons behind money laundering scandals in EU member states. 

    2. Increase in non-compliance penalties

    The 6AMLD has clearly defined the penalties for businesses and individuals. 

    Natural persons 

    The individuals involved in money laundering are called “natural persons” in the 6AMLD. Non-compliance penalty is increased for the natural persons. Now a sentence of four years is non-compliance penalty, it was one year previously. As mentioned in the official journal

    In order to deter money laundering throughout the Union, Member States should ensure that it is punishable by a maximum term of imprisonment of at least four years.”  

    Also, the monetary fine is increased to five million Euros. 

    Legal persons 

    Businesses are described as “legal person”. In case a business is found to be a part of a financial crime due to lack of AML measures or negligence it will be liable for these below-mentioned penalties:

    • Exclusion from entitlement to public benefits or aid
    • Permanent or temporary disqualification to perform commercial activities
    • Judicial winding up
    • Temporary or permanent closure
    • Placed under judicial supervision

    3. “Aiding and Abetting” and “ inciting and attempting” 

    The scope of AML regulations is increased to” aiding and abetting” and “ inciting and attempting”. The 6AMLD official journal clearly states, “Member States shall take the necessary measures to ensure that aiding and abetting, inciting and attempting an offence referred to in Article 3(1) and (5) is punishable as a criminal offence.”

    4. Alignment with international laws

    The Journal states that the member countries are required to implement the 6AMLD while keeping their AML/CFT laws aligned with international laws. It will increase transparency in financial infrastructure. 

    This means the reporting entities (businesses/ legal persons) will be required to follow the new regulations that will be aligned with international regimes.

    5. FATF recommendations EU AML laws

    The 6AMLD will require the member countries to align AML laws with the FATF recommendations. The tax crimes are defined as a criminal offence and the preventive measures are required to be designed in light of revised recommendations of FATF. 

    6. Not missing on the virtual currencies

    The sixth anti-money laundering directive requires the member countries to take concrete steps towards elimination of risk coming with these virtual assets. The reporting entities such as crypto exchanges, digital asset exchanges, cryptocurrency dealers, crypto wallet providers and businesses accepting cryptocurrency payments will be facing some major AML/KYC compliance scrutiny in 2021. 

    How businesses should prepare for the change?

    The ultimate effect of changing regimes is on the businesses. The new directive is drafted to change the perspective of businesses towards AML/CFT compliance. The new regulations of “Aiding and abetting”, and “ inciting and attempting” have changed the compliance requirements. Businesses will be liable for heavy penalties if they’re found to be involved in the criminal offence. Even if they’re used as a tool or a channel. 

    The reporting entities are required to have an in-depth understanding of the risks and threats and to take necessary steps to eliminate the risk of any of the listed criminal offences being channeled from their platform. 

    The businesses are expected to have a completely updated setup for compliance requirements. Digital identity screening could prove to be a reliable partner of the businesses in this regard. As it provides global coverage in the screening of individuals and businesses it helps reporting entities maintain a global risk cover against bad actors.

    Find more relevant resources:

    6AMLD of EU – A detailed insight

    Related Posts

    Blog

    AML Compliance and Digital Banks – Understanding the Evolving Regulatory Landscape

    The emergence of new technologies in FinTech, increasing use of digital currencies, and alternati...

    AML Compliance and Digital Banks – Understanding the Evolving Regulatory Landscape Explore More

    Blog

    The Top Customer Onboarding Tips for Businesses

    Today every business is competing to boost their retention rate and offer their audience a secure...

    The Top Customer Onboarding Tips for Businesses Explore More

    Blog, Online Marketplace

    How the Rise of ID Verification Promises Trillions of Dollars for Online Marketplace?

    The affliction of cybercrimes and online frauds has reached such high proportions that the cost o...

    How the Rise of ID Verification Promises Trillions of Dollars for Online Marketplace? Explore More

    Blog

    Know Your Donor (KYD) for NPOs – Red Flags that Charities Need to Consider

    Like every other sector, non-profit organizations and charities are also vulnerable to financial ...

    Know Your Donor (KYD) for NPOs – Red Flags that Charities Need to Consider Explore More

    Blog

    Facial Recognition | The Principles of Responsible Use and the Legal Landscape

    One of the most popular uses of AI nowadays is facial recognition. In all likelihood, it’s ...

    Facial Recognition | The Principles of Responsible Use and the Legal Landscape Explore More

    Blog

    Identity Verification Services — Fueling the Demand for Safe Gaming Experience

    Modern gaming is the most recent evolution of online games that has enchanted gamers across the g...

    Identity Verification Services — Fueling the Demand for Safe Gaming Experience Explore More

    Blog

    How Will Simplified Due Diligence SDD Help Industries in 2024?

    For businesses, the due diligence process is an integral part of the Know Your Customer programme...

    How Will Simplified Due Diligence SDD Help Industries in 2024? Explore More

    Blog

    40 recommendations of FATF – Shaping the future of your business

    Financial Action Task Force or simply FATF is an active global authority that never fails in surp...

    40 recommendations of FATF – Shaping the future of your business Explore More

    Blog

    Prevailing Crimes in Metaverse – How Shufti’s IDV Solution Can Help

    Metaverse is a virtual space where people belonging to the same or different physical regions can...

    Prevailing Crimes in Metaverse – How Shufti’s IDV Solution Can Help Explore More

    Blog

    Digital Document verification – an efficacious method of ID card scanning

    Businesses, banks, airports, social media platforms, e-commerce stores all need to be sure of the...

    Digital Document verification – an efficacious method of ID card scanning Explore More

    Blog

    Know Your Patient – Curbing Healthcare Fraud through Identity Verification

    With global digitization and emerging technologies, the healthcare sector has adopted a variety o...

    Know Your Patient – Curbing Healthcare Fraud through Identity Verification Explore More

    Blog

    Shufti Celebrates 5 Years of Innovation in the IDV Industry

    October 2022 marks Shufti’s 5th anniversary – five successful years of building trust globall...

    Shufti Celebrates 5 Years of Innovation in the IDV Industry Explore More

    Blog

    Document Authentication | Streamlining Onboarding, Compliance & Fraud Prevention

    Before the world experienced digitisation due to the advent of smartphones, fast-speed internet, ...

    Document Authentication | Streamlining Onboarding, Compliance & Fraud Prevention Explore More

    Biometric Technology, Blog

    Warning: You’re Losing Money by not Using Biometric Identification

    On the surface, Biometric Identification might seem as if it’s only useful for opening your bank ...

    Warning: You’re Losing Money by not Using Biometric Identification Explore More

    Blog

    Securing Identities with Photo ID Verification

    ID verification has seen unprecedented growth not only in the processes but also in the crime com...

    Securing Identities with Photo ID Verification Explore More

    Blog

    Addressing the Challenge of Money Laundering Risks for Payment Service Providers (PSPs)

    During the last few decades, the financial industry has altogether revolutionized, and digital tr...

    Addressing the Challenge of Money Laundering Risks for Payment Service Providers (PSPs) Explore More

    Blog

    Evolving Regulations Shaping Digital Crypto Ecosystem – How Shufti Can Help

    Since the start of civilization, humans have used money in several different ways, and throughout...

    Evolving Regulations Shaping Digital Crypto Ecosystem – How Shufti Can Help Explore More

    Blog

    Strong Customer Authentication (SCA) – Factors, Methods, and Benefits

    In Europe, new customer authentication requirements for online payments were introduced on Septem...

    Strong Customer Authentication (SCA) – Factors, Methods, and Benefits Explore More

    Blog

    e-IDV: Safeguarding Businesses and Customers in the Digital Age

    Identity theft cases are on the rise in this age of digitisation. In 2022, India topped the list ...

    e-IDV: Safeguarding Businesses and Customers in the Digital Age Explore More

    Blog

    KYC and AML Compliance – Addressing the Challenge of Money Laundering in Online Trading Platforms

    An online trading platform is a program where shareholders and traders deal through financial int...

    KYC and AML Compliance – Addressing the Challenge of Money Laundering in Online Trading Platforms Explore More

    Blog

    Adverse Media Screening Requirements and Why Do FIs Need It?

    The financial services industry is under a lot of regulatory requirements recently, and for all t...

    Adverse Media Screening Requirements and Why Do FIs Need It? Explore More

    Blog

    KYC Verification: Eliminating Fraud from Crypto Exchanges

    Despite persistent volatility, the crypto market continues to yield profits. Whilst the market wi...

    KYC Verification: Eliminating Fraud from Crypto Exchanges Explore More

    Blog

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses

    There are approximately 77 challenger banks in Europe alone, the best range amongst the other reg...

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses Explore More

    Blog

    June 2023 Recap: Major AML Violations and How Can Shufti Help

    In global financial systems, the increasing frequency of Anti-Money Laundering (AML) violations h...

    June 2023 Recap: Major AML Violations and How Can Shufti Help Explore More

    Blog

    The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud

    Since the dawn of the internet in the 90s, we’ve witnessed multiple phases of digital revolution....

    The State of Fraud Detection & Prevention in 2024 | Ready, Set, Fraud Explore More

    Blog

    Facial Recognition to Reshape the Retail Industry in 2020

    The explosion of facial recognition technology in our smartphones – for instance in iPhone ...

    Facial Recognition to Reshape the Retail Industry in 2020 Explore More

    Blog

    Anti-Money Laundering Screening | Securing Digital Economies from Financial Crimes

    The increased reliance on digital banking and the advent of virtual currencies in today’s d...

    Anti-Money Laundering Screening | Securing Digital Economies from Financial Crimes Explore More

    Blog

    Healthcare is the New Target of Criminals – What’s the Solution?

    The healthcare sector has been facing many challenges due to coronavirus pandemic. Cybercrimes ha...

    Healthcare is the New Target of Criminals – What’s the Solution? Explore More

    Blog

    Ensuring KYC/AML Compliance In Cryptocurrency Firms – The Role of Shufti

    With emerging technologies in the financial industry, cryptocurrency is picking up the pace, and ...

    Ensuring KYC/AML Compliance In Cryptocurrency Firms – The Role of Shufti Explore More

    Blog, Financial Crime / AML

    South Korea want Crypto Exchanges to adopt Digital KYC and AML Compliance

    South Korea is soon going to adopt regulatory measures to bring in crypto exchanges under regulat...

    South Korea want Crypto Exchanges to adopt Digital KYC and AML Compliance Explore More

    Blog

    6 Upcoming Trends In Blockchain And Cryptocurrency For 2021

    2020 was unlike any other year. It was chaotic, happening, and has finally come to an end. In the...

    6 Upcoming Trends In Blockchain And Cryptocurrency For 2021 Explore More

    Blog

    A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps

    There is no doubt that social media has its benefits in contemporary times. With the growing tech...

    A Brief Insight into Social Media Scams – How Shufti’s IDV Solution Helps Explore More

    Blog, Financial Crime / AML

    3 Stages of money laundering – How AML screening guards your business

    The United Nations Office on Drugs and Crime found that 2 to 5% of global GDP is laundered every ...

    3 Stages of money laundering – How AML screening guards your business Explore More

    Blog

    Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification

    In today’s digital age, businesses must have a robust identity verification system in place...

    Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification Explore More

    Blog

    Don’t Need AML Compliance? Think Again!

    The majority of the businesses believe that they do not need to comply with AML regulations at al...

    Don’t Need AML Compliance? Think Again! Explore More

    Blog, Financial Crime / AML

    AMLD5 Amendments in Prepaid Cards Transaction Threshold

    In July 2018, the European Commission came into effect the 5th Anti-Money Laundering Directive (A...

    AMLD5 Amendments in Prepaid Cards Transaction Threshold Explore More

    Blog

    The Growing Risk of Wash Trading and Money Laundering – How Shufti Can Help

    The Non-Fungible Token (NFTs) market exploded last year and became one of the most popular buzzwo...

    The Growing Risk of Wash Trading and Money Laundering – How Shufti Can Help Explore More

    Blog

    Enhanced Due Diligence – How to Identify and Deal with High-Risk Customers

    Business relationships always come with associated risks that require carefully implemented measu...

    Enhanced Due Diligence – How to Identify and Deal with High-Risk Customers Explore More

    Blog

    5 Ways How Online Age Verification Promises Growth for the Gaming Industry

    The online gaming industry is booming since the last few years. Due to the pandemic, the trend fo...

    5 Ways How Online Age Verification Promises Growth for the Gaming Industry Explore More

    Blog

    AML Screening – Securing Alternative Payment Market and Overcoming Prevailing Risk of Crimes

    Escalating demand for innovative, new, and robust alternative payment options across the world is...

    AML Screening – Securing Alternative Payment Market and Overcoming Prevailing Risk of Crimes Explore More

    Blog

    Biometric Authentication | Understanding the Significance of Facial Recognition

    Data security and identity verification have come a long way since the inception of knowledge-bas...

    Biometric Authentication | Understanding the Significance of Facial Recognition Explore More

    Blog

    How Age Verification Protects the E-commerce Industry From Potential Risks

    Online shopping has become the new normal since the COVID-19 pandemic struck. With digital produc...

    How Age Verification Protects the E-commerce Industry From Potential Risks Explore More

    Blog, Identity & KYC

    Employees’ Digital Identity Verification for Remote Hiring

    With the age of technological advancement, the world is becoming a heavily connected global villa...

    Employees’ Digital Identity Verification for Remote Hiring Explore More

    Blog

    7 Trends in Identity Verification Solutions to look for in 2020

    Internet is an anonymous space where people can hide their identities and come up with bizarre ps...

    7 Trends in Identity Verification Solutions to look for in 2020 Explore More

    Blog

    Top Cryptocurrency Trends to Look Out for in 2022

    2021 has been a remarkable year for cryptocurrency as because of COVID-19 outbreak crypto industr...

    Top Cryptocurrency Trends to Look Out for in 2022 Explore More

    Blog

    July 2023 Recap: Major Compliance Events and How AML Verification Can Help

    Anti-Money Laundering (AML) violations pose a substantial and concerning threat to the reliabilit...

    July 2023 Recap: Major Compliance Events and How AML Verification Can Help Explore More

    Blog

    Navigating the Changing Digital Finance Landscape 2023

    The financial services sector has witnessed a rapid surge in the adoption of digital technologies...

    Navigating the Changing Digital Finance Landscape 2023 Explore More

    Blog

    A Brief Overview of the RegTech Industry [2022 Update]

    The rising financial crimes have raised concerns of global regulatory watchdogs giving rise to Re...

    A Brief Overview of the RegTech Industry [2022 Update] Explore More

    Anti Money Laundering, Blog, Financial Crime / AML, Reg Tech

    EU’s Sixth Anti-Money Laundering Directive (AMLD6)

    Summary: Sixth Anti-Money Laundering Directive (AMLD6) highlights a stringent framework to combat...

    EU’s Sixth Anti-Money Laundering Directive (AMLD6) Explore More

    Blog

    Securing Business Operations with Risk Assessment

    The increasing connectivity and dependence of the world on technology have led to a rise in sophi...

    Securing Business Operations with Risk Assessment Explore More

    Blog

    Designing for the World: UX, Automation & Inclusivity with Lisa Kleinman

    About Lisa Kleinman Dr. Lisa Kleinman, Ph.D. is a UX leader, researcher and design strategist who...

    Designing for the World: UX, Automation & Inclusivity with Lisa Kleinman Explore More

    Blog

    Open Banking Trends & the Vitality of Identity Verification

    With rapid digitisation, open banking is becoming the new normal in the banking sector. Open bank...

    Open Banking Trends & the Vitality of Identity Verification Explore More

    Blog

    Top 5 Payment Trends Transforming the Commerce Sector in 2021

    Financial markets across the globe saw many unpredictable changes due to the pandemic last year. ...

    Top 5 Payment Trends Transforming the Commerce Sector in 2021 Explore More

    Blog

    5 Best Practices to Combat Identity Fraud on Social Media Platforms

    Social media has demonstrated extraordinary growth in the past decade as a result of improvements...

    5 Best Practices to Combat Identity Fraud on Social Media Platforms Explore More

    Blog

    Face Spoofing & Liveness Bypass: The Real Threat to Facial Recognition

    With the introduction of facial recognition, authentication has never been faster or more conveni...

    Face Spoofing & Liveness Bypass: The Real Threat to Facial Recognition Explore More

    Blog

    4 WAYS AI is Shaping KYC and AML Compliance for Businesses

    The role of Artificial Intelligence (AI) is rapidly increasing in businesses and the emergence of...

    4 WAYS AI is Shaping KYC and AML Compliance for Businesses Explore More

    Blog

    Latest Regulatory Updates on KYC Verification for Crypto Exchanges

    Even by the standards of cryptocurrency, the volatility exhibited in 2021 has been astounding. In...

    Latest Regulatory Updates on KYC Verification for Crypto Exchanges Explore More

    Blog

    Identity checks – A Profitable Business Strategy or Another Business Expense?

    Online commerce is a necessity of every business these days. With nearly every consumer carrying ...

    Identity checks – A Profitable Business Strategy or Another Business Expense? Explore More

    Blog

    Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification

    In today’s digital age, businesses must have a robust identity verification system in place...

    Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification Explore More

    Blog, Online Marketplace

    Demand for KYC & ID Verification in Higher Education

    I remember a friend of mine, Jack, from high school he was one of the most non-serious people I k...

    Demand for KYC & ID Verification in Higher Education Explore More

    Blog, Online Marketplace

    Ride Sharing Services and ease provided by KYC Services

    Ride Sharing services might be the hottest form of transportation especially in developed countri...

    Ride Sharing Services and ease provided by KYC Services Explore More

    Blog

    Keeping AI Bias Out of the IDV Game with Shufti

    Consider this: 85% of financial institutions today use some form of AI in their products. The tec...

    Keeping AI Bias Out of the IDV Game with Shufti Explore More

    Blog

    AUSTRAC’s ML/TF Risk Assessment 2021 – Other Domestic Banks Report [Part 2]

    Australia is an important member of the Financial Action Task Force and plays a substantial role ...

    AUSTRAC’s ML/TF Risk Assessment 2021 – Other Domestic Banks Report [Part 2] Explore More

    Blog

    AML Non-Compliance Penalties Soaring Sky High in the First Half of 2021

    After the skyrocketing fines and penalties on banks for AML non-compliance in 2020, the year 2021...

    AML Non-Compliance Penalties Soaring Sky High in the First Half of 2021 Explore More

    Blog, Financial Crime / AML

    FSA demands greater AML Compliance from Japanese Crypto Exchanges

    In a recent move, Financial Services Agency (FSA), the Japanese Financial regulator, has demanded...

    FSA demands greater AML Compliance from Japanese Crypto Exchanges Explore More

    Blog

    Document Verification Services – The Secret Sauce to Keep Fraudsters Away

    Forging someone’s documents is something bad enough but selling them on the dark web is just rubb...

    Document Verification Services – The Secret Sauce  to Keep Fraudsters Away Explore More

    Blog

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams

    Businesses need to bring on reliable partners and investors who can contribute to growth, provide...

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams Explore More

    Blog, Financial Crime / AML, Online Marketplace

    Billion Dollar AML Compliance Plan for the Financial Sector

    The financial services sector has long been blamed for the spread of financial crimes like money ...

    Billion Dollar AML Compliance Plan for the Financial Sector Explore More

    Blog

    AML Compliance in High-End Vehicle and Yacht Sales

    High-end vehicles and expensive properties are the universal status symbols that represent the ex...

    AML Compliance in High-End Vehicle and Yacht Sales Explore More

    Blog

    Mounting Cases of Money Laundering through Digital Currencies in 2021

    Even though cryptocurrencies like Bitcoin, Ethereum, and Dogecoin are increasing rapidly, yet the...

    Mounting Cases of Money Laundering through Digital Currencies in 2021 Explore More

    Blog

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses

    There are approximately 77 challenger banks in Europe alone, the best range amongst the other reg...

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses Explore More

    Blog, Online Marketplace

    Social Media and Identity Theft Frauds

    Imagine this: You get up in the morning and like most people; check your email. There you have an...

    Social Media and Identity Theft Frauds 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