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

    AML Screening – Identifying and Overcoming Challenger Banks’ Weaknesses

    b-img-idenoty

    There are approximately 77 challenger banks in Europe alone, the best range amongst the other regions. As growth surges, they are encountering numerous criminal risks. Fraudsters seek to exploit challenger banks to conceal their identities and illicit funds. Criminals are concentrated on FinTech services to launder money, fund terrorism, and commit different financial crimes.

    Challenger banks are going through an acceptance spike as they capitalise on an accelerated need to develop progressive economic techniques. However, they want to combine environmentally-friendly AML screening solutions to meet customers’ needs and regulatory requirements. As per UNODC, the estimated quantity of cash laundered globally in 12 months is roughly $800 billion to $2 trillion or 2 to 5% of international GDP. This article discusses how AML screening helps challenger banks stop compliance penalties, restrict criminal activities, and counter numerous vulnerabilities.

    Vulnerabilities Faced by Rapidly Growing Challenger Banks

    In addition to dangers related to FinTech offerings such as handy cash laundering, challenger banks experience customer-related threats, anonymity, and high-speed transactions. These elements are the essential sights for criminals to conceal their real identities. Furthermore, fraudsters are trying to find advanced economic services provided through challenger banks to bypass AML screening. Whilst clients are searching ahead to using these establishments as their mode of transactions and managing different cash matters, the threat that criminals pose continues to burden such banks.

    Challenger banks are experiencing an excessive threat of regulatory repercussions as they attempt to make AML compliance measures lenient to entertain greater clients. It is projected to be well worth USD 15.27 trillion by 2027, registering a CAGR of 12.38% from 2022 to 2027. In return, financial crimes are surfacing on a massive scale, making these establishments and clients highly vulnerable. Further dangers that challenger banks face involve;

    • Corruption and Bribery 

    In order to help their residents most governments offer countless programmes. These contain less AML screening cash management, low-interest loans, economic aid, property schemes, and extra bonuses.

    Criminals see superior economic technologies as their golden chance to misuse funds. Furthermore, Politically Exposed Persons (PEP) use challenger banks to conceal dirty money, often acquired through political corruption.. Similarly, criminals take advantage of these financial establishments to divert governmental money by bribing officials-this way, criminals effortlessly bypass AML screening.

    • Economic Hardships 

    Economic hardship often sees unemployment become wider spread within the population, criminals often harness this to aid their efforts in money laundering. By targeting those without income and financially unstable, such vulnerable targets are ideal victims to bring into money laundering ploys as they are desperate for cash. Fraudsters make the most susceptible humans and persuade them to indulge in money laundering. Later, challenger banks are used to break out the AML screening process, conceal funds, and hide the actual identities of criminals.

    b-info-aml-ananly
    • Cyber Security Threats

    Remote deposits, withdrawals, and seamless transactions draw criminals’ attention. The use of false identities permits them to ignore AML screening and function without verifying their customers. Recent research shows, global cybercrime costs are predicted to grow by 23% annually, reaching $23.84 trillion from 2022 to 2027. Fraudsters use spoofing, deepfake, and phishing to compromise challenger banks’ digital systems. By committing cyberattacks, they steal private statistics and misuse monetary services.

    • Legal Disparities

    Keeping cross-border commercial enterprise dealings and transactions in view, regulatory bodies are taking strict anti-money laundering measures. While challenger banks are the essential facilitators of digital payments, they are using extra possibilities to detect criminals. However, to restrict criminal threats and ensure compliance, integrating AML screening has become an essential protocol.

    Cross-border transactions pave the way for fraudsters to launder excessive sums of money. On the contrary, robust AML screening options pick out and deter their illegal activities.

    Financial Conduct Authority (FCA)’s AML Security Guidelines for Challenger Banks 

    Integrating modern financial technologies and identification verification strategies is streamlining digital onboarding. Using real-time selfies, liveness detection, online record authentication, and cross-validation throughout international watchlists allows challenger banks to elevate their services.

    The dramatic increase in financial crimes is spiking further criminal interest in this realm of challenger banks. Similarly, FCA made it clear that challenger banks must not compromise AML compliance controls whilst bringing in the digitisation of cash management.

    FCA recognised numerous areas where challenger banks require on-the-spot improvement to prevent money laundering and fraud. Therefore, these establishments need to include the following anti-money laundering controls:

    1. Challenger banks want to enhance threat assessment and improve monetary crime controls whilst aiming to maintain and grow business. Improvements inside Customer Due Diligence (CDD) mechanisms for invulnerable digital onboarding are other essential requirements.
    2. Challenger banks have to obtain private information, sources of cash details, and occupational proofs.
    3. Upgrade software of Enhanced Due Diligence (EDD) to discover high-risk clients as effectively as detecting fraudulent transactions.
    4. Integrate robust AML options for ongoing transaction monitoring and suspiciousness detection.
    5. Prepare Suspicious Activity Reports (SARs) and publish them to the appropriate authorities. Challenger banks are further counselled to expand the quantity of SARs to secure purchaser relationships. 

    How Shufti Can Help

    Customer retention and capitalising on business possibilities to outperform in an aggressive market is the predominant focus of challenger banks. In this context, they have to set up improved AML screening mechanisms. This refers to enforcing high-quality purchaser verification, due diligence, threat assessment, and ongoing monitoring. In order to make certain AML compliance, incorporating advanced financial crime prevention options is a promising wager for challenger banks.

    Talk to us

    Related Posts

    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

    Biometrics technology a key to key-free world

    In 2016, the biometric market in the United States reached $3.52 billion U.S Dollars and is expec...

    Biometrics technology a key to key-free world 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

    How Artificial Intelligence is taking ID verification to the next level?

    Identity theft is deemed as a growing problem. Particularly with the increase in online shopping,...

    How Artificial Intelligence is taking ID verification to the next level? Explore More

    Blog, Financial Crime / AML, Fraud Prevention, Identity & KYC

    Facial Recognition: Worries About the Use of Synthetic Media

    In 2019, 4.4 billion internet users were connected to the internet worldwide, a rise of 9% from l...

    Facial Recognition: Worries About the Use of Synthetic Media Explore More

    Blog, Identity & KYC

    How ID Verification via OCR can transform Digital World?

    ID verification is hailed as the ultimate savior for businesses operating multiple digital channe...

    How ID Verification via OCR can transform Digital World? Explore More

    Blog

    Identity Verification | A Complete Guide to Compliance and Risks

    The United Nations says $2 trillion is laundered globally every year. Of that, less than 10% is d...

    Identity Verification | A Complete Guide to Compliance and Risks Explore More

    Blog

    DHSC’s Counter-fraud Strategy to Combat Healthcare Fraud

    Healthcare remains one of the most lucrative industries for criminals with nearly $272 billion lo...

    DHSC’s Counter-fraud Strategy to Combat Healthcare Fraud Explore More

    Blog, Online Marketplace

    The Urgency for Know Your Customer’s Customer (KYCC) in Businesses

    It is not just the financial services sector that is required to comply with anti-money launderin...

    The Urgency for Know Your Customer’s Customer (KYCC) in Businesses Explore More

    Blog

    AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4]

    This blog covers the last chapter of our four-part series on AUSTRAC’s money laundering and terro...

    AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4] Explore More

    Blog

    AML/CFT Compliance – Why Australia is a Safe Haven for Money Laundering

    Recent inquiries and cases against major Australian casinos have raised questions about the measu...

    AML/CFT Compliance – Why Australia is a Safe Haven for Money Laundering Explore More

    Blog

    Age Verification – Ensuring the Protection of Minors on Digital Platforms

    In today’s technologically advanced era, digital products and services have transformed the way s...

    Age Verification – Ensuring the Protection of Minors on Digital Platforms Explore More

    Blog, Identity & KYC

    Which KYC Documents are Required for Customer Verification?

    Name, Rank, Brigade, and Serial Number. That’s the only information military organizations across...

    Which KYC Documents are Required for Customer Verification? Explore More

    Blog

    E-Signature | Digitise and Verify Agreements in Compliance

    The use of electronic signature, or e-signature, has transformed business dealings. The days of s...

    E-Signature | Digitise and Verify Agreements in Compliance Explore More

    Blog

    Shufti Beyond Borders – Customer Experience That Drives Results

    About Stanton Brooks Stanton Brooks is a global customer experience (CX) leader specializing in d...

    Shufti Beyond Borders – Customer Experience That Drives Results Explore More

    Blog

    ICOs blocking investors from USA and China – Why and How?

    Initial Coin Offerings, more commonly known as ICOs, are all the rage in modern day financial wor...

    ICOs blocking investors from USA and China – Why and How? Explore More

    Blog

    Six Ways to Protect Your Business from Christmas Scams

    Christmas is around the corner and all of you must be very excited to decorate christmas trees, e...

    Six Ways to Protect Your Business from Christmas Scams Explore More

    Blog

    Understanding the Difference Between Money Laundering and Embezzlement

    Money laundering and embezzlement are two financial offences involving the movement of significan...

    Understanding the Difference Between Money Laundering and Embezzlement Explore More

    Blog

    e-IDV | Enhancing Fintech Onboarding, Operations & Compliance

    Fintech is unprecedentedly growing and changing as it responds to the always-changing tech landsc...

    e-IDV | Enhancing Fintech Onboarding, Operations & Compliance Explore More

    Blog

    Global KYC and AML Regulatory Updates To Watch for in 2022

    In 2022, the world continues to experience the serious aftermath of the coronavirus pandemic, yet...

    Global KYC and AML Regulatory Updates To Watch for in 2022 Explore More

    Blog, Identity & KYC

    10 Quick Tips Regarding Identity Theft Protection

    Identity fraud has grown substantially in the past two decades, and unfortunately, it is here to ...

    10 Quick Tips Regarding Identity Theft Protection Explore More

    Blog

    Lithuania’s AML Regulations – How the EU’s FinTech Hub Prevents Financial Crime

    Emerging FinTech firms around the world spend almost one-third of their overall budgets on develo...

    Lithuania’s AML Regulations – How the EU’s FinTech Hub Prevents Financial Crime Explore More

    Blog

    Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties

    For multinational businesses, reliance on external third-party vendors is crucial. However, failu...

    Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties 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

    Securing Cryptocurrency Sector and Fighting Financial Crimes With Shufti’s AML Solution

    A decade ago, digital currencies were an academic concept, largely unknown to the world’s general...

    Securing Cryptocurrency Sector and Fighting Financial Crimes With Shufti’s AML Solution Explore More

    Blog

    KYC in Crypto Exchanges – Hitting the Nail on the Head

    A few years back, startups related to ICOs (Initial Coin Offerings) were in full swing, driving t...

    KYC in Crypto Exchanges – Hitting the Nail on the Head Explore More

    Artificial Intelligence, Blog

    Artificial Intelligence – What is it and Why it Matters

    Artificial intelligence (AI) emphasizes the creation of intelligent machines that work and react ...

    Artificial Intelligence – What is it and Why it Matters Explore More

    Blog

    Need for Identity Verification in Real Estate and Its Real-World Use Cases

    The real estate industry is in dire need of identity verification processes. The reason being, th...

    Need for Identity Verification in Real Estate and Its Real-World Use Cases Explore More

    Blog

    5 Industry Leaders Shared Their Insights on the Future of Biometrics

    Modern technology has brought several conveniences to life. From the ease of working at home to s...

    5 Industry Leaders Shared Their Insights on the Future of Biometrics Explore More

    Blog

    Secure the Fintech Future with RegTech

    Financial Technology (Fintech) refers to the use of technological advancements in the financial i...

    Secure the Fintech Future with RegTech Explore More

    Blog

    E-commerce Frauds – Common types and Prevention tips

    What are some common e-commerce frauds and how can you prevent them? Is the buyer on your site an...

    E-commerce Frauds – Common types and Prevention tips Explore More

    Blog, Online Marketplace

    Fraud Protection services for Online Retail Businesses

    Online Marketplace faces Chargeback issues Fraud Protection Services are an integral part of reta...

    Fraud Protection services for Online Retail Businesses Explore More

    Blog

    Anti-Money Laundering Solutions | Helping Businesses Fight Against Financial Crimes

    In today’s digital world, increased financial crimes adversely impact global industries, mainly t...

    Anti-Money Laundering Solutions | Helping Businesses Fight Against Financial Crimes Explore More

    Blog

    KYC | How to perform KYC verification in three simple steps

    Know Your Customer, commonly referred to as ‘KYC’, is an identity verification process that plays...

    KYC | How to perform KYC verification in three simple steps 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

    Rise of Money Laundering in UAE – How Financial Institutions Can Comply with New Regulations

    The UAE certainly earned its spot in the top 10 global financial centers with unprecedented growt...

    Rise of Money Laundering in UAE – How Financial Institutions Can Comply with New Regulations Explore More

    Blog

    What You Need to Know About Switzerland’s Crypto AML Rules by FINMA

    Switzerland is historically famous for being a global hub for gold. However, the new digital gold...

    What You Need to Know About Switzerland’s Crypto AML Rules by FINMA Explore More

    Blog

    Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference?

     Often, people confuse CIP and KYC and think both are the same. Customer Identification ...

    Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference? Explore More

    Blog

    Halloween and the Spooky Scams – How identity verification helps?

    Halloween is just around the corner and so do the scammers ready to exploit the opportunity. Whic...

    Halloween and the Spooky Scams – How identity verification helps? Explore More

    Blog

    Anti Money Laundering – What is AML compliance and why is it important?

    Anti-money laundering compliance is vital for obliged entities and being conversant with AML comp...

    Anti Money Laundering – What is AML compliance and why is it important? Explore More

    Blog

    Identity Document Verification | Revolutionising Customer Onboarding

    Companies worldwide are undergoing a radical digital transition to keep up with today’s lig...

    Identity Document Verification | Revolutionising Customer Onboarding Explore More

    Blog

    10 Frequently Asked Questions about Real-time Document Verification

    As we’re propelled deeper into digital transformation, techniques employed by scammers are ...

    10 Frequently Asked Questions about Real-time Document Verification Explore More

    Blog

    Combating Identity Theft in On-Demand Services with Shufti’s KYC Solution

    Transition is the only thing that is inevitable in the universe. Every passing day is changing ou...

    Combating Identity Theft in On-Demand Services with Shufti’s KYC Solution Explore More

    Blog, Financial Crime / AML, Identity & KYC

    Why Financial Industry Needs KYC/AML Compliance?

    Banks and other financial institutions often serve financial criminals as a conduit for dirty mon...

    Why Financial Industry Needs KYC/AML Compliance? Explore More

    Blog

    The Role of Biometrics in Combating Money Laundering and Identity Fraud

    The fast-paced growth of biometric technology and its widespread adoption in the financial and he...

    The Role of Biometrics in Combating Money Laundering and Identity Fraud Explore More

    Blog

    Top 5 Reasons to Incorporate Identity Verification into Your Hiring Process

    From widespread layoffs to the urgency of hiring as soon as possible, the job market has drastica...

    Top 5 Reasons to Incorporate Identity Verification into Your Hiring Process Explore More

    Blog

    Safeguarding the Art Market with Shufti’s AML Screening Solution

    Non-fungible tokens (NFTs), blockchain-powered title deeds tied to a virtual or physical asset, h...

    Safeguarding the Art Market with Shufti’s AML Screening Solution Explore More

    Blog

    UN Sanctions List: What Every Business Owner Must Know

    Businesses must navigate a web of rules and regulations whilst onboarding customers, as one misst...

    UN Sanctions List: What Every Business Owner Must Know Explore More

    Blog

    Travel Fraud and the Crucial Role of e-IDV

    The travel sector is booming in this age of digitisation, and air travellers are estimated to dou...

    Travel Fraud and the Crucial Role of e-IDV Explore More

    Blog

    5 Key Regulatory Updates for the Banking Sector in 2021

    The pandemic disrupted operations in the banking sector and the criminal activities significantly...

    5 Key Regulatory Updates for the Banking Sector in 2021 Explore More

    Blog

    International Tax Body to curb Cryptocurrency based Tax Evasion

    Tax enforcement authorities from Australia, Canada, the Netherlands, the United Kingdom and the U...

    International Tax Body to curb Cryptocurrency based Tax Evasion Explore More

    Blog

    Know Your Investor | Sophisticated Investor Verification in Real-Time

    In today’s data-driven digital world, organized crime groups and fraudsters have developed more s...

    Know Your Investor |  Sophisticated Investor Verification in Real-Time Explore More

    Blog

    How ID Verification Helps in Fighting Digital Scams?

    ID VERIFICATION: Digital scams are common phenomena and it affects all types of businesses in eve...

    How ID Verification Helps in Fighting Digital Scams? Explore More

    Blog

    Passport Verification: Preventing Document Forgery and Identity Theft

    In our current era of modern interconnection, global travel has become more accessible than ever,...

    Passport Verification: Preventing Document Forgery and Identity Theft Explore More

    Blog, Identity & KYC

    ICOs and KYC Compliance

    With the surge in digitalisation of payments and crowdfunding; the need to set proper standards f...

    ICOs and KYC Compliance Explore More

    Blog

    Card-Not-Present (CNP) Fraud – How to Prevent False Chargebacks?

    The eCommerce industry continues to grow rapidly, so are fraudulent activities. According to Stat...

    Card-Not-Present (CNP) Fraud – How to Prevent False Chargebacks? 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

    High-Risk Transactions – How Can Enhanced Due Diligence (EDD) Help?

    In today’s continuously evolving world, businesses should not only focus on the revenue they gene...

    High-Risk Transactions – How Can Enhanced Due Diligence (EDD) Help? Explore More

    Blog

    Bitcoin ATMs – how it works and KYC compliance

    Bitcoin ATMs are everything an ATM is and isn’t. The world of finance and banking has chang...

    Bitcoin ATMs – how it works and KYC compliance Explore More

    Blog

    Securing Public Facilities with Touchless ID Verification Kiosks

    Due to the coronavirus pandemic, social distancing became the utmost need of the hour. Given the ...

    Securing Public Facilities with Touchless ID Verification Kiosks Explore More

    Blog

    AML Screening – Why Real Estate is an Easy Target for Money Launderers

    The strong link between money laundering and the real estate industry is becoming a global concer...

    AML Screening – Why Real Estate is an Easy Target for Money Launderers Explore More

    Blog

    Periodic to Perpetual KYC — The Changing Landscape in Banks

    The employment of effective Know Your Customer (KYC) procedures has long been a challenge for fin...

    Periodic to Perpetual KYC — The Changing Landscape in Banks Explore More

    Blog

    Anti Money Laundering – What is AML compliance and why is it important?

    Anti-money laundering compliance is vital for obliged entities and being conversant with AML comp...

    Anti Money Laundering – What is AML compliance and why is it important? Explore More

    Blog

    An Insight Into AML Compliance Concerns Amid Russia Sanctions

    With Russia’s attack on Ukraine, the international financial landscape is facing concerns of comp...

    An Insight Into AML Compliance Concerns Amid Russia Sanctions Explore More

    Blog

    What are chargeback frauds and what do they mean for businesses?

    The world we live in no longer seems to be honest and fair. A large number of individuals are par...

    What are chargeback frauds and what do they mean for businesses? Explore More

    Blog

    Warning Signs of ICO Scams and the Role of Identity Verification Service

    If you have heard of Bitcoins and cryptocurrencies then you must have heard of ICOs or Initial Co...

    Warning Signs of ICO Scams and the Role of Identity Verification Service Explore More

    Blog

    KYC alternatives disrupting traditional KYC methods

    Technology is building bridges between businesses and consumers across the barriers of distance a...

    KYC alternatives disrupting traditional KYC methods Explore More

    Blog

    Telehealth Services and Sophisticated Crimes – How Shufti Can Help Health Centers

     The speed of innovation has never been faster. Re-emerging from a global pandemic, busi...

    Telehealth Services and Sophisticated Crimes – How Shufti Can Help Health Centers Explore More

    Blog

    Regulatory Compliance | The Importance of Age Verification on Betting Sites

    Online betting sites and gambling platforms frequently face significant challenges in adhering to...

    Regulatory Compliance | The Importance of Age Verification on Betting Sites 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

    Digital Safety for Social Media, Gaming & E-Commerce Platforms

    As people and businesses are getting more and more connected online, social media continues to pl...

    Digital Safety for Social Media, Gaming & E-Commerce Platforms Explore More

    Blog

    Know Your Patient (KYP) | 4 KYP Compliance Trends for 2024

    Nothing is more constant than change, and this is never more evident than in the Know Your Patien...

    Know Your Patient (KYP) | 4 KYP Compliance Trends for 2024 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