The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

EU’s 4th AML Directive Aims to make the Payment Ecosystem Crime Free

AML Directive Shufti

On June 26, 2018, the European Union landed the fourth AML directive that is targeted at combating cryptocurrency crimes.

With the new EU AML directive in place, it is deemed that crypto-related crimes shall take a serious hit. Being an unregulated currency, crypto money poses a high risk of frauds entailing money laundering, identity theft and terrorist funding. Therefore, this directive might just be that ray of hope regulatory authorities awaited. 

What Do New EU AML Directives Bring to the Table

The new rules imposed by the EU serve to better explore and comprehend the risks associated with cryptocurrencies, enhance the communication between the Financial Intelligence Units (FIUs), and imposing all-inclusive monitoring on high-risk transactions, especially those originating from third-world states. This would maintain the integrity of the region’s payment system, while impeding the efforts towards terrorist financing and money laundering.

Around forty new suggestions by the Financial Action Task Force (FATF) have been incorporated in the new directive. It has been decided that along with the EU, the EBA, ESMA (ESAs) and EIOPA will also be taking risk assessment and combating measures.

Implementation of the Stricter Side of Rules

An alert and active checking on cash transactions amounting to ten thousand euros has been implemented. This limit has been brought down from fifteen thousand euros. Any transactions exceeding the aforementioned threshold will be considered as ‘obliged entities’. This comes under the extended AML regulations that now place wider range of restrictions on monetary exchanges that are over a particular amount.

Real estate agents have also had to face the extended rules applied by the EU. These are not just applicable to the dealers who buy and sell properties; even those who sublet the properties are also placed under the microscope. It will ensure no business is contributing towards terrorist funding and any illicit activities.

This restriction is not limited to cash exchanges and real estate agents only, rather, gambling companies were placed under scrutiny as well. Providers of such services shall be ranked as obliged entities as well and can be removed provided they pose a medium-high money laundering risk. Only low-risk providers shall be deliberated over and may be allowed to stay in business.

EU Member States Jump up to the Mark

All the states that come under the European Union are obligated to create and maintain central registers wherein the details concerning the ownership of Anglo-American trusts and various corporations are logged.

This ensures that the transparency rate with regards to the data for beneficial ownership of organizations remains high, and the quality of the same becomes superior.

Access of this information shall be available to the Financial Intelligence Units (FIUs) so Customer Due Diligence may be ensured, under the revised and extended AML legislation requirements.

Furthermore, in order to gather information about the Anglo-American trust structures, certain individuals and corporations may also be allowed to access the data present in the central registers.

Effect on Compliances and Global PEPs Lists

With an expanded scope of the fourth AML directive in place, the number of people considered out of line as also increased. This means that global watch lists, sanctions lists and PEPs will have to be updated to include individuals who are a part of governing bodies of various political parties.

It is stated in the revised regulation that financial institutions like banks, investment firms, and other institutions will comply group-wide. Business of all kinds for and with such institutions will be halted in countries where all AML directives and stances taken to combat terrorist funding activities are not complied to.

In addition to that, appropriate measures will be taken against the states that refuse to comply with the AML directive. Aside from the official warning that will be issued to these states in observation of such a legislative breach will include but won’t be limited to a fine of at least one million euros. For banks and financial institutions, this fine would amount to anything greater than or equal to five million euros.

Conclusion

To sum up, along with the previously enforced GDPR rules, the new fourth directive of the AML legislation has brought together the European Union states to work and fight against the terrorist funding, crime financing and money laundering activities. The actions taken against them are bound to have positive effects on the payment ecosystem of the EU, with resource drainage in the right places rather than towards illegal and criminal practices.

In this day and age, it is highly imperative that companies and businesses opt for identity management applications to safeguard their operations against fraudsters and money launderers. Shufti can help enhance security and guard organisations before any losses are incurred.

Recommended For You:

Related Posts

Blog

E-KYC – The Next Step in the Evolution of KYC Verification

As the world shifts to digital applications, financial operations are being automated for added c...

E-KYC – The Next Step in the Evolution of KYC Verification 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

Fighting Deepfakes with Fool-Proofed Identity Verification Systems: How Shufti Can Help

Undoubtedly, 21st century is the most innovative time period in human history. With every passing...

Fighting Deepfakes with Fool-Proofed Identity Verification Systems: 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

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution

The digital world is evolving at a greater pace than ever before. The Metaverse is considered a d...

The Rising Concern of Financial Crimes in the Metaverse – AML Screening as a Solution Explore More

Blog, Identity & KYC

Common Online Scams You Need to Know About

The explosion of the internet and the world moving towards the fourth industrial revolution have ...

Common Online Scams You Need to Know About Explore More

Blog, Identity & KYC

KYC and AML Compliance can help cryptocurrencies to earn legitimacy

Cryptocurrencies are currently limited in use by virtual currency enthusiasts or by lottery bidde...

KYC and AML Compliance can help cryptocurrencies to earn legitimacy Explore More

Blog

3 ways to protect your organizations from coronavirus cyber security threat

  Due to the spread of the coronavirus, the world adapts to new ways of working. Cyber criminals ...

3 ways to protect your organizations from coronavirus cyber security threat Explore More

Blog

Transaction Monitoring: Going Beyond AML Screening

Whether you are an accountant in Wall Street or a developer for Google, money laundering will not...

Transaction Monitoring: Going Beyond AML Screening Explore More

Blog

Shufti’s Address Verification Service – A Key Step in Digital Identity Verification

The rapidly developing technology of today is altering how consumers browse for things online. Th...

Shufti’s Address Verification Service – A Key Step in Digital Identity Verification Explore More

Blog

The Evolution of AML Compliance from Checkbox to Risk-based Approach

Financial institutions are exposed to several money laundering threats, as criminals today are we...

The Evolution of AML Compliance from Checkbox to Risk-based Approach Explore More

Blog

Understanding False Positives in AML Transaction Monitoring

Financial institutions such as banks, neo-banks, insurance companies, investment companies, finte...

Understanding False Positives in AML Transaction Monitoring Explore More

Blog

Cross Border Digital Payments – Regulatory Regime and the Global Context

The world is moving towards smarter payments with technology trends picking up the pace in 2021. ...

Cross Border Digital Payments – Regulatory Regime and the Global Context 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

Business transformations for operational resilience amid COVID-19 crisis

The pandemic continues affecting businesses and consumer operations along with having economical ...

Business transformations for operational resilience amid COVID-19 crisis Explore More

Anti Money Laundering, Blog

How is Libra’s Launch Changing the Cryptocurrency Landscape?

Libra will have to go the extra mile to prove itself worthy of global acclaim that it aims to ach...

How is Libra’s Launch Changing the Cryptocurrency Landscape? Explore More

Blog

Know Your Player | Onboard Verified Gamers and Scale Globally

In today’s digitised gaming world, player verification stands as a cornerstone for onboarding leg...

Know Your Player | Onboard Verified Gamers and Scale Globally Explore More

Biometric Technology, Blog, Fraud Prevention, Identity & KYC

Multi-factor Authentication is being defeated’ warns FBI

For years, online businesses and organizations have been adopting various strategies and defense ...

Multi-factor Authentication is being defeated’ warns FBI Explore More

Blog, Identity & KYC

Identity Verification Market ‘Hitting High Record’

The advent of technology has pushed businesses to digitize their operations for better customer e...

Identity Verification Market ‘Hitting High Record’ 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

Blockchain and NFTs – Setting New Standards for Cybersecurity and Identity Management

Non-fungible tokens (NFTs) are an evolution over the emerging concept of cryptocurrencies. As fin...

Blockchain and NFTs – Setting  New Standards for Cybersecurity and Identity Management Explore More

Blog

Risks of Vaccine Verification Apps & What IDV Industry can Offer

COVID-19 has brought enough changes to make the world smarter. Businesses and customers migrating...

Risks of Vaccine Verification Apps & What IDV Industry can Offer Explore More

Blog

Document Verification Checks: Streamlining the Onboarding Process for New Customers

Verifying documents is critical to regulatory compliance, risk assessment, and many organisations...

Document Verification Checks: Streamlining the Onboarding Process for New Customers Explore More

Blog

Replay Attacks – Another Rising Threat for Businesses in 2021

As technology advances, more and more solutions are available for making lives convenient. Unfort...

Replay Attacks – Another Rising Threat for Businesses in 2021 Explore More

Blog

Understanding eKYC | The Benefits, Processes & 2024 Forecast

Governments worldwide require firms, such as financial institutions, to know who their customers ...

Understanding eKYC | The Benefits, Processes & 2024 Forecast Explore More

Blog

Identity Fraud and Risk Assessment: An Ultimate Guide for 2023

Customer onboarding and business relationships always come with associated risks that must be han...

Identity Fraud and Risk Assessment: An Ultimate Guide for 2023 Explore More

Blog

Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution

The transport industry is on the verge of significant disruption, with new emerging technologies,...

Securing Mobility as a Service (MaaS) with Shufti’s Digital Identity Verification Solution Explore More

Blog, Business Technology

The demand for OCR Technology increasing for ID Verification

ID verification is core to overall identity verification services that help business around the g...

The demand for OCR Technology increasing for ID Verification Explore More

Blog

The 5 Pillars of Anti-money Laundering Compliance

Imposters often “launder” money acquired through illegal activities, like drug trafficking, so th...

The 5 Pillars of Anti-money Laundering Compliance Explore More

Blog

Identity verification in freelancing- no more smoke and mirrors

Freelancing platforms are rapidly growing. In 2017, around 57 million Americans were freelancing ...

Identity verification in freelancing- no more smoke and mirrors Explore More

Blog

Video KYC (VKYC) | Identity Verification and Fraud Prevention

In the last few years, the verification industry has experienced remarkable expansion. As our tec...

Video KYC (VKYC) | Identity Verification and Fraud Prevention Explore More

Blog

Social Media Platforms and Increasing Crimes – How Shufti’s ID Verification Services Can Protect

The rise and evolution of social media have completely transformed the way people communicated an...

Social Media Platforms and Increasing Crimes – How Shufti’s ID Verification Services Can Protect Explore More

Blog

Two-Factor Authentication – A Firewall Against Social Engineering Attacks

Businesses and financial institutions around the globe often report concerns of financial crimes ...

Two-Factor Authentication – A Firewall Against Social Engineering Attacks Explore More

Blog

Eradicating Financial Crimes in Online Gambling using NFC Verification

Emerging technologies have altogether revolutionized the online gambling industry and instead of ...

Eradicating Financial Crimes in Online Gambling using NFC Verification 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

Evolution of Digital Payments and Prevailing Crimes – How Shufti’s AML Screening Can Help

With emerging technologies, the digital payments trend is rising, and users are executing frictio...

Evolution of Digital Payments and Prevailing Crimes – How Shufti’s AML Screening Can Help Explore More

Blog

The 5 Pillars of Anti-money Laundering Compliance

Imposters often “launder” money acquired through illegal activities, like drug trafficking, so th...

The 5 Pillars of Anti-money Laundering Compliance Explore More

Blog

5 Ways Face Recognition Will Become More Prevalent in 2023 and Beyond

During the covid pandemic, many businesses updated their access control systems to facial recogni...

5 Ways Face Recognition Will Become More Prevalent in 2023 and Beyond Explore More

Blog

Common Types of BNPL Fraud and the Role of KYC/AML Regulations

The Buy Now Pay Later (BNPL) services are growing rapidly. 42% of credit customers are interested...

Common Types of BNPL Fraud and the Role of KYC/AML Regulations Explore More

Blog

The Reality Behind Money Laundering through Environmental Crimes

Environmental crimes are among the most prevailing and profiting offenses present in the world. C...

The Reality Behind Money Laundering through Environmental Crimes Explore More

Blog

Augmented Intelligence – What 2019 have for AI systems?

Admittedly, Artificial Intelligence or AI has gained a considerable amount of ill reputation from...

Augmented Intelligence – What 2019 have for AI systems? Explore More

Blog

ID Verification for High-Potential Digital Fraud Cases

Instances of digital frauds and payment scams are highly damaging for banks and financial institu...

ID Verification for High-Potential Digital Fraud Cases Explore More

Blog

Working from Home Spikes Demand for Digital Identity Verification

Due to the Coronavirus Pandemic, many businesses are grounded or are enforced to work from home. ...

Working from Home Spikes Demand for Digital Identity Verification Explore More

Blog

Debunking the Top 7 Myths about Video KYC with CEO of Shufti

Businesses were looking for more robust and remote ways of verifying the identities of customers ...

Debunking the Top 7 Myths about Video KYC with CEO of Shufti Explore More

Blog

Inside the EU’s New Crypto-Assets Regulatory Regime – How Shufti Can Help

With transforming technologies, the use of cryptocurrency is skyrocketing, and a large number of ...

Inside the EU’s New Crypto-Assets Regulatory Regime – How Shufti Can Help Explore More

Blog

Intelligent Character Recognition: How it Drives the Industry with a Breeze

Data is the nucleus of any business and how efficiently it is processed is the key to digital tra...

Intelligent Character Recognition: How it Drives the Industry with a Breeze Explore More

Blog

5 Reasons to Invest in Intelligent Character Recognition Services

Businesses deal with a plethora of documents, ranging from accounting and finance to sales and ma...

5 Reasons to Invest in Intelligent Character Recognition Services Explore More

Blog

COVID Passports – Bringing Convenience to the Travel & Tourism Sector

“Sorry, the earth is closed today.”  Tony Stark’s sarcastic dialogue became the worst possible re...

COVID Passports – Bringing Convenience to the Travel & Tourism Sector Explore More

Blog, Business Technology

Business Verification – Foolproof Ways to Secure Happy Customers

Creating a winning customer experience can make for a significant competitive advantage for busin...

Business Verification – Foolproof Ways to Secure Happy Customers 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

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

Combating Money Laundering Threats in the Art and Antiquities Sector Through AML Screening Solutions

With transforming technologies and growing digitization, the global art industry has also embrace...

Combating Money Laundering Threats in the Art and Antiquities Sector Through AML Screening Solutions Explore More

Blog

Top 5 Trends for the Government Sector in 2022

With the emergence of the new variant of COVID-19 “Omicron” in South Africa, it is possible that ...

Top 5 Trends for the Government Sector in 2022 Explore More

Blog

Electronic Identity Verification | Forecasts and Predictions

Identities change as the world goes more digital. As more activities, like banking, socialising, ...

Electronic Identity Verification | Forecasts and Predictions Explore More

Blog

European Payments Initiative Calling for IDV Solutions

The rise in the popularity of Visa and Mastercard in Europe, both US-headquartered companies, was...

European Payments Initiative Calling for IDV Solutions Explore More

Blog

The State of KYC/AML Compliance in Commonwealth of Independent States (CIS) Region

Commonwealth of Independent States (CIS) is among the largest regions of the world with numerous ...

The State of KYC/AML Compliance in Commonwealth of Independent States (CIS) Region Explore More

Blog

Restricting Criminals from Exploiting Investment Industry with Shufti AML Screening Solution

Investing the accumulated capital of investors in financial securities is the primary task of inv...

Restricting Criminals from Exploiting Investment Industry with Shufti AML Screening Solution Explore More

Blog, Identity & KYC

Facial Recognition Technology – Behind The Curtains

Business competition has made security technology critical. There are many innovative security te...

Facial Recognition Technology – Behind The Curtains 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, Online Marketplace

Why age verification matters to online businesses?

Identity verification services are fast becoming a business norm for companies that are enthusias...

Blog

AML Compliance for Money Service Businesses (MSBs) – How Shufti’s AML Screening Helps

Money laundering has spread like a virus in today’s globalized society. Banks and other fin...

AML Compliance for Money Service Businesses (MSBs) – How Shufti’s AML Screening Helps 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

The Top Use Cases of Optical Character Recognition (OCR) Technology

Optical Character Recognition (OCR) technology has transformed how businesses collect, process, a...

The Top Use Cases of Optical Character Recognition (OCR) Technology Explore More

Blog

Know Your Player – Preventing Identity Fraud in Sports Events

The ongoing trend of globalizing sports activities since the last few decades has resulted in a l...

Know Your Player – Preventing Identity Fraud in Sports Events Explore More

Blog

Securing Instant Money Transfers in the Banking Sector – EPC’s New Rulebook

Financial services have always played a vital role throughout the entire history of advanced huma...

Securing Instant Money Transfers in the Banking Sector – EPC’s New Rulebook Explore More

Blog

Modern Financial Management: The Role of KYI in Safeguarding Businesses

With our digital ecosystem being full of threats, there is a significant possibility that the qua...

Modern Financial Management: The Role of KYI in Safeguarding Businesses 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

Strengthening digital businesses with online age verification

It is projected that by the end of 2021, 2.4 billion will buy products and services online, up 46...

Strengthening digital businesses with online age verification Explore More

Blog

AUSTRAC’s ML/TF Risk Assessment Report on Major Banks [Part 1]

Back in September 2018, the Australian Government provided AUD 5.175 million funding to AUSTRAC f...

AUSTRAC’s ML/TF Risk Assessment Report on Major Banks [Part 1] Explore More

Blog, Online Marketplace

How Identity Verification Makes Remote Account Opening Efficient for Banks

Banks have a lot to benefit from the remote account opening service as it allows them to bring a ...

How Identity Verification Makes Remote Account Opening Efficient for Banks Explore More

Blog

Digital customer onboarding – Revamping onboarding process in banks

The first impression is what counts most when it comes to customer-oriented services. Banks and f...

Digital customer onboarding – Revamping onboarding process in banks Explore More

Blog

Fighting ID Fraud in the Healthcare Industry With Online ID Verification

While the coronavirus outbreak has emerged with a lot of challenges for the healthcare industry, ...

Fighting ID Fraud in the Healthcare Industry With Online ID Verification 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