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

    216.73.217.4

    Digital Wallet Fraud | How AML Screening Solution Can Help

    b-img-digital

    Digital wallets are becoming everyone’s go-to transaction method and the total number of e-wallet users was 3.4 billion in 2022, further forecasted to reach 5.2 billion worldwide by 2026. 

    Besides generating revenue, it is becoming a hotspot for criminals and causing reputational damage to businesses. That’s where AML screening solutions come in—a reliable way to protect digital assets.

    How Do eWallets Work?

    Digital wallets enable users to link all their payment methods under a single account. The account stores funds, credit card numbers, and even cryptocurrencies and these wallets are accessible online through a smartphone or a website. 

    The main feature of e-wallets is that all information related to transactions is encrypted and tokenised. This enhances security and an individual’s privacy but also leaves the merchants in vain as they can not spot credit card scams. 

    The Risks of Money Laundering with Digital Wallets

    eWallet firms pose a risk of money laundering and other crimes due to the anonymity provided by online financial services. Not only this but other aspects, such as the speed of transactions and lack of regulations from domestic and global authorities may also contribute to it. In detail, those risks involve: 

    • Anonymity: Sometimes digital wallet service providers may implement inadequate identity verification measures. Criminals take advantage of this to use services anonymously and fulfil their illicit intents.  They use different tactics, such as proxies to open an account or even open many accounts for laundering money. 
    • Transaction Obscurity: Cybercriminals manipulate digital wallet services to conceal their efforts of laundering money. They either access multiple eWallet accounts from a single device to hide their identity or make many small transactions to conceal a handsome amount of transferred money. Digital wallets also offer to transfer money abroad to elude the attention of authorities. 
    • Speed: eWallet transactions occur quickly and in real-time just like many other digital financial services. This means that criminals can move illegal funds around quickly, bypassing safeguards and investigations. Rapid transactions help criminals structure their transactions, using several transfers across many accounts, to conceal the illegal origin effectively. 
    • Lack of Oversight: Some countries do not have effective legislation in place to deal with eWallet issues. Scammers, who are on the hunt for such loopholes, take this opportunity and exploit regulatory blind spots to accomplish their illicit goals.  Moreover, the lack of oversight facilitates criminals in transferring illegal funds to different countries by avoiding suspicious activity reporting rules and reporting thresholds.

    The Cost of Digital Wallet Fraud

    One or two fake transactions may not wreak havoc on a company but the issue arises when transactions are recurring. They commit crimes at scale causing digital wallets to lose a large amount of money fast. 

    Besides financial costs, digital wallets also impact the customer experience and put a dent in brand reputation. Moreover, fraud victims take it to social media, scaring off potential customers. Thus, e-wallet services must abide by AML regulations to keep scammers at bay, protect customers and the company’s image, and avoid the risk of large non-compliance fines

    How to Comply with AML Regulations?

    The Financial Action Task Force (FATF) sets out an Anti Money Laundering and Countering Terrorist Financing (AML/CFT) framework for the member states to implement in national legislation. This means that all the companies, including digital wallet service providers, have a legally obligated to conduct comprehensive risk assessments of their clients and modify their AML response proportionately. In practice, eWallets should include the below-mentioned measures to satisfy AML regulations:

    • Customer Due Diligence: Digital wallets should conduct Customer Due Diligence (CDD) to verify Personally Identifiable Information (PII) like names, date of birth, address, etc.  High-risk clients have to undergo Enhanced Due Diligence (EDD) under the risk-based approach.
    • Transaction Monitoring: eWallet services must check their customers’ transactions and identify any suspicious activity that shows money laundering. In case any suspicious activity is detected, the organisation must generate a Suspicious Activity Report (SAR) to notify the authorities promptly. 
    • Screening and Monitoring: Digital wallet firms must check that their customers do not appear in sanction lists, watchlists, and Politically Exposed Persons (PEPs) lists. Moreover, eWallets also monitor clients for negative social media stories or any related things that increase the risk of money laundering. 

    Digital wallet service providers should look out for the following “red flag” behaviours to improve AML compliance.

    • Disparities or inconsistencies in client verification during account registration.
    • Unusual patterns of transactions or those involving PEPs or high-risk customers.
    • Rapid and frequent cash withdrawals transferred to digital wallets.
    • Routine transfer of money to third-party accounts after depositing them to eWallets.
    • Transactions that occur above or below the reporting thresholds.
    • Several account registrations, transfers or deposits that seem connected.

    What Does Shufti Bring to the Table?

    Shufti’s AML screening solution helps e-wallet companies guard their platforms against money laundering and other financial crimes. Shufti offers AML services to 230+ countries and territories with an accuracy rate of more than 99%.  

    Here’s what makes Shufti’s AML solution stand out:

    • ​​Verify e-wallet service providers’ registration numbers
    • Screen potential customers against 1700+ international AML watchlists
    • Perform thorough background checks of UBOs (Ultimate Beneficial Owners) in real-time
    • Eliminate the risks of financial penalties 

    Want to know more about how an AML screening solution work?

    Contact us

    Related Posts

    Blog

    5 Ways how IDV Provides an Active Defense Against Fincrime

    Identity theft, account takeovers, and data breaches… The world has seen enough cybercrime ...

    5 Ways how IDV Provides an Active Defense Against Fincrime Explore More

    Blog

    Synthetic Identity Fraud: Fake Identities for Criminal Activity

    An increase in financial crime has been predicted by economic downturns during the previous two d...

    Synthetic Identity Fraud: Fake Identities for Criminal Activity Explore More

    Blog

    How biometrics in visa process reduce travel difficulties

    Biometric technology is enhancing the travel industry in many ways.  Factors that drive the secur...

    How biometrics in visa process reduce travel difficulties Explore More

    Blog, Identity & KYC

    Age Verification – Ultimate Online Protection for Minors

    The rapid increase in the use of the internet is raising some major concerns for parents regardin...

    Age Verification – Ultimate Online Protection for Minors Explore More

    Blog

    Understanding Risk Assessment in the Gambling Sector – 2025 Edition

    Online gambling revenue is on track to exceed $150 billion globally by 2025, with Europe alone ge...

    Understanding Risk Assessment in the Gambling Sector – 2025 Edition Explore More

    Blog

    Digital ID Verification – Why is it Critical for Customer Experience?

    Last year was all about lockdown and pandemic disrupting business operations to the very core. Th...

    Digital ID Verification – Why is it Critical for Customer Experience? Explore More

    Blog

    UK Elections: Photo ID Law Change Raising Concerns for Voters

    Law changes bring several hassles for the public and government authorities. The recent photo ID ...

    UK Elections: Photo ID Law Change Raising Concerns for Voters Explore More

    Blog

    The Vital Role of AML Compliance for P2P Lending

    Archiac banking traditions saw loan applicants held in suspense, waiting for lengthy periods of t...

    The Vital Role of AML Compliance for P2P Lending Explore More

    Blog

    Case Study: How Shufti anchors Rapid Global Expansion for BigCash, a Popular Gaming Technology Platform

    Witzeal Technologies, India’s leading gaming platform BigCash, with its 40 million+ users and 1.5...

    Case Study: How Shufti anchors Rapid Global Expansion for BigCash, a Popular Gaming Technology Platform Explore More

    Blog

    A New Dawn for Global Coverage: Built to Work Everywhere

    A New Dawn for Global Coverage: Built to Work Everywhere Explore More

    Anti Money Laundering, Blog, Business Technology, Financial Crime / AML, Fraud Prevention, Identity & KYC

    Initial CCPA Compliance Costs Could Hit $55 Billion: Report

    According to an economic impact assessment prepared for the state attorney general’s office by an...

    Initial CCPA Compliance Costs Could Hit $55 Billion: Report Explore More

    Blog

    Mobile Payments – Way of the Future or a Fad of the Digital Age?

    Are we moving towards a world where retailers may one day say “We don’t take cash”? As mobile pay...

    Mobile Payments –  Way of the Future or a Fad of the Digital Age? Explore More

    Blog

    KYC/AML Compliance – A Roadblock for Money Mules and Illicit Fund Transfers

    Cybercrimes are becoming increasingly complex and diverse in the era of digitization, with frauds...

    KYC/AML Compliance – A Roadblock for Money Mules and Illicit Fund Transfers Explore More

    Blog

    Worldwide Language Coverage from Shufti helps you go Global

    Language serves the purpose of communication among people of a certain locality, nation or in cas...

    Worldwide Language Coverage from Shufti helps you go Global 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

    Identity Verification Isn’t Just for Compliance Anymore

    Identity verification solutions are well-known in regulatory compliance environments, particularl...

    Identity Verification Isn’t Just for Compliance Anymore Explore More

    Blog, Identity & KYC

    Know Your Customer with Video Proof

    Know your Customer (KYC) verification with Shufti, which is becoming a recognised name in the...

    Know Your Customer with Video Proof 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

    UAE’s Crypto Landscape – Eliminating Financial Crime to Ensure Regulatory Compliance

    The UAE is the Middle East’s rapidly growing cryptocurrency hub that is experiencing a heated-up ...

    UAE’s Crypto Landscape – Eliminating Financial Crime to Ensure Regulatory Compliance Explore More

    Blog

    Top 5 Ways to Improve Transaction Monitoring in Fintech

    Fintech is a fast-growing sector that combines finance and technology to assist businesses and cu...

    Top 5 Ways to Improve Transaction Monitoring in Fintech 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, Financial Crime / AML

    AML Rules for Virtual Currency and Legal Sector – FATF 2019

    Financial Action Task Force (FATF) is an inter-governmental regulatory authority. It was founded ...

    AML Rules for Virtual Currency and Legal Sector  – FATF 2019 Explore More

    Blog

    Shell Companies and Money Laundering: How to Combat Them?

    Shell companies are notorious for all the right reasons. These entities often called ghost compan...

    Shell Companies and Money Laundering: How to Combat Them? Explore More

    Blog

    May 2023 Recap: Major Security Breaches and Penalties

    May 2023 witnessed several security breaches wreaking havoc on the digital landscape. High-profil...

    May 2023 Recap: Major Security Breaches and Penalties Explore More

    Blog

    Know Your Business (KYB) | Ensuring Financial Security

    The Know Your Business solution standard verifies a company’s legal standing and confirms i...

    Know Your Business (KYB) | Ensuring Financial Security Explore More

    Blog

    The Latest AML Violations and the Role of Transaction Monitoring

    In the evolving regulatory landscape, combating financial crimes has become a top priority of reg...

    The Latest AML Violations and the Role of Transaction Monitoring 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

    Fintech 2021 – A Brief Insight of Global KYC Regulations

    Financial services are among the most heavily regulated sectors in the world, and the number one ...

    Fintech 2021 – A Brief Insight of Global KYC Regulations Explore More

    Blog

    KYC Compliance for DeFi Platforms – Finding the Balance for a Secure Future

    The rise of decentralized services in the form of digital asset trading platforms and DeFi consta...

    KYC Compliance for DeFi Platforms – Finding the Balance for a Secure Future Explore More

    Blog

    Money Laundering in the Metaverse – NFTs, DeFi, and the Role of Shufti’s AML Solutions

    For more than a decade, the metaverse concept has been picking up pace, and the world is preparin...

    Money Laundering in the Metaverse – NFTs, DeFi,  and the Role of Shufti’s AML Solutions Explore More

    Blog, Financial Crime / AML, Online Marketplace

    Smaller Banks are in dire need of AML Compliance to avoid fines

    Smaller banks are being considered an easy target for money laundering activities because of thei...

    Smaller Banks are in dire need of AML Compliance to avoid fines Explore More

    Blog

    Shufti’s Insights on Enhancing Customer Onboarding Experience

    The digital world nowadays requires a lot of effort from businesses to ensure customer satisfacti...

    Shufti’s Insights on Enhancing Customer Onboarding Experience Explore More

    Blog

    AI-based IDV Can Effectively Curb Unemployment Insurance Fraud

    Throughout the United States, an emerging scam has taken the nation by storm. Unemployment Insura...

    AI-based IDV Can Effectively Curb Unemployment Insurance Fraud Explore More

    Anti Money Laundering, Blog, Financial Crime / AML

    US Treasury opposes European Commission AML Country List

    The European Commission has adopted a new list of 23 countries which lack appropriate framework f...

    US Treasury opposes European Commission AML Country List Explore More

    Blog

    Identity Verification making online dating platforms secure

    The expansion of the internet and mobile devices has led to the rapid adoption of online dating. ...

    Identity Verification making online dating platforms secure Explore More

    Blog

    6 Ways Identity Verification Will Unlock Digital Transformation in Airlines

    Airlines were particularly negatively impacted by the Covid-19 pandemic, and the situation was fu...

    6 Ways Identity Verification Will Unlock Digital Transformation in Airlines Explore More

    Blog, Financial Crime / AML, Identity & KYC

    All You Need To Know About KYC Compliance

    Financial crimes are increasing at an immense pace. As per the United Nations Office of Drugs and...

    All You Need To Know About KYC Compliance Explore More

    Blog

    KYC in 2021 – Shaking Things Up in the Financial World

    Despite the considerable investments made by industry leaders, KYC is still a challenge in the fi...

    KYC in 2021 – Shaking Things Up in the Financial World Explore More

    Blog

    Top 7 COVID-19 Related Scams and Frauds to Look For in 2021

    It has been more than a year since the COVID-19 pandemic took the world by storm. Where the globa...

    Top 7 COVID-19 Related Scams and Frauds to Look For in 2021 Explore More

    Blog

    Know Your Investor (KYI) – Onboarding the Right Investors for Your Business

    In today’s tech-driven world, financial operations are being transformed by emerging digital solu...

    Know Your Investor (KYI) – Onboarding the Right Investors for Your Business Explore More

    Blog

    Language Barrier? Challenge Accepted!

    Language Barrier? Challenge Accepted! Explore More

    Blog

    Romance Scams: Protect Your Heart and Wallet with Identity Verification

    People searching for love online sometimes meet the unfortunate fate of a broken heart and someti...

    Romance Scams: Protect Your Heart and Wallet with Identity Verification Explore More

    Blog

    Case Study: How Shufti anchors Rapid Global Expansion for BigCash, a Popular Gaming Technology Platform

    Witzeal Technologies, India’s leading gaming platform BigCash, with its 40 million+ users and 1.5...

    Case Study: How Shufti anchors Rapid Global Expansion for BigCash, a Popular Gaming Technology Platform Explore More

    Blog

    AML Compliance – Eliminating Financial Crimes in FinTech Firms

    The FinTech industry is growing rapidly across various sectors with investments and large-scale a...

    AML Compliance – Eliminating Financial Crimes in FinTech Firms Explore More

    Blog

    Curbing Real Estate Crimes with AML Screening Solutions – How Shufti Can Help

    In course of history, money laundering has always remained most complicated issue for governments...

    Curbing Real Estate Crimes with AML Screening Solutions – How Shufti Can Help Explore More

    Blog

    Gambling Compliance or Data Protection? The Puzzle is Solved!

    The evolving regulations for the gambling industry are likely to increase compliance challenges i...

    Gambling Compliance or Data Protection? The Puzzle is Solved! Explore More

    Blog

    Shell Companies and Money Laundering: How to Combat Them?

    Shell companies are notorious for all the right reasons. These entities often called ghost compan...

    Shell Companies and Money Laundering: How to Combat Them? Explore More

    Blog

    Post-pandemic eCommerce Landscape Calling for Robust ID Verification Solution

    During the coronavirus pandemic, the e-commerce industry has witnessed a significant increase in ...

    Post-pandemic eCommerce Landscape Calling for Robust ID Verification Solution Explore More

    Blog

    Customer Risk Assessment – A Landmark Approach to Fight Identity Fraud

    Identity theft is the most prominent cybercrime which has raised alarms for global law enforcemen...

    Customer Risk Assessment – A Landmark Approach to Fight Identity Fraud Explore More

    Blog

    Money Laundering in the Real Estate Sector – How Shufti’s AML Services Help

    Purchasing luxurious mansions is always an attractive way for money launderers to legitimize thei...

    Money Laundering in the Real Estate Sector – How Shufti’s AML Services Help Explore More

    Blog

    Simplify Payment Processes with Biometric Authentication

    A developing trend that is altering how customers handle their money is the use of biometric auth...

    Simplify Payment Processes with Biometric Authentication Explore More

    Blog, Fraud Prevention

    Data Breaches in 2019 – A Year in Review

    Stepping into 2020, the year 2019 has been on the rollercoaster in terms of security breaches. Da...

    Data Breaches in 2019 – A Year in Review Explore More

    Blog, Identity & KYC

    4 Know Your Customer (KYC) Strategies to adopt in 2019

    Digital fraud haunted the cyberspace in 2018 with the majority of online frauds originating from ...

    4 Know Your Customer (KYC) Strategies to adopt in 2019 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

    GDPR Checklist – Practices to adopt as Business Norms

    It’s been a little over eight months since the GDPR came into effect on 25 May 2018. From that po...

    GDPR Checklist – Practices to adopt as Business Norms Explore More

    Blog

    UK’s On-Demand Culture – Building Trust & Security with Digital ID Verification

    People across the world are spending more time on the internet ever since the pandemic struck the...

    UK’s On-Demand Culture – Building Trust & Security with Digital ID Verification 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

    The Ultimate KYC Checklist for 2023 to Ensure Regulatory Compliance

    Non-compliance cost businesses billions of dollars. Regulators have charged financial firms with ...

    The Ultimate KYC Checklist for 2023 to Ensure Regulatory Compliance Explore More

    Blog

    Combatting Fraud in the Automotive Industry

    Fraud is a growing concern for many industries and the automotive industry is no exception. In 20...

    Combatting Fraud in the Automotive Industry 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

    AML Compliance – Korean Crypto Exchanges Join Hands to Fight Money Laundering

    Cryptocurrency has been notoriously criticised for money laundering and other illicit activities ...

    AML Compliance – Korean Crypto Exchanges Join Hands to Fight Money Laundering Explore More

    Blog

    AML Compliance for Luxury Goods Market – How Shufti can Help

    Money laundering using high-value goods such as jewelry, yachts, motor vehicles, watches, fine ar...

    AML Compliance for Luxury Goods Market – How Shufti can Help Explore More

    Blog

    5 Ways How AI Is Uprooting Recruitment Industry

    Artificial Intelligence is strengthening its position in many industries and the recruitment indu...

    5 Ways How AI Is Uprooting Recruitment Industry 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

    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, Reg Tech

    3 Reasons why RegTech is the Future of Innovation?

    Regulatory Technologies, commonly referred to as RegTech, is an innovative use case of Financial ...

    3 Reasons why RegTech is the Future of Innovation? Explore More

    Blog

    Gaming Industry Crimes and KYC/AML Solutions – What Shufti Can Offer

    From the world’s glitziest gaming development to betting shops on the high streets, the global ga...

    Gaming Industry Crimes and KYC/AML Solutions – What Shufti Can Offer Explore More

    Blog

    Analyzing the UK and US Gambling Industry by Numbers

    Businesses and people in the gambling sector are aware of the risks involved and what are their p...

    Analyzing the UK and US Gambling Industry by Numbers Explore More

    Blog

    The Role of KYC Protocols in Safeguarding the Future of Cryptocurrency

    Despite volatility in the crypto sector, millions of individuals access their services worldwide....

    The Role of KYC Protocols in Safeguarding the Future of Cryptocurrency Explore More

    Blog, Fraud Prevention

    Fraud Prevention through Secure Payment Processes

    Here’s a question, why do people always say things like  “the good days”? The fact is a number of...

    Fraud Prevention through Secure Payment Processes Explore More

    Blog

    Ensure Digital Security with e-KYC Solutions

    In today’s world where the distances have been reduced considerably with the advancement of techn...

    Ensure Digital Security with e-KYC Solutions Explore More

    Blog

    KYC Verification Process – 3 Steps to Know Your Customer Compliance

    Since the turn of the century, we’ve been propelled into a technological revolution. As digital i...

    KYC Verification Process – 3 Steps to Know Your Customer Compliance 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