The Top 10  Most Difficult Countries for Identity Verification

The Top 10  Most Difficult Countries for Identity Verification

Download Report

Fintech 2021 – A Brief Insight of Global KYC Regulations

fintech

Financial services are among the most heavily regulated sectors in the world, and the number one concern of governments as Fintech companies increase. Over the years, Fintechs have achieved remarkable growth and flexibility. They are able to launch quickly, focus on scalability and adapt fast. However, the rapid growth does not come without challenges. As technology is integrated into the finance sector, regulatory problems have magnified for organizations and determining related laws can be a big task. Let’s take a look at what these regulatory challenges are and the present state of fintechs. 

Key KYC/AML Regulations for Fintechs in 2021

In many regions, the Fintech sector was unregulated a few years back and became a fertile ground for scams and frauds. Due to the diversity of fintech offerings and its impact on various industries, regulatory authorities cannot develop a single approach to all the problems. For many areas, governments have updated the existing Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations. Some have imposed FATF’s risk-based approach. However, fintechs are affected in more ways than one could think of, so industry-specific customer due diligence (CDD) approach is vital.

United States 

The US-based fintechs are not regulated by any specific regulations. However, they are subject to the federal and state level laws for registration, identity verification and background screening where necessary. The financial watchdog of the country – FinCEN – has issued AML/CFT policies for all financial institutions. The country’s fintech companies have to perform customer due diligence during onboarding and submit Suspicious Activity Reports (SARs) to the regulatory body.  

United Kingdom 

Currently, the United Kingdom does not have any specific regulatory framework for fintechs. However, any fintech that performs traditional financial services, such as banking or insurance, falls under the existing regulatory parameter set by the regulatory authorities. This means that for any fintech to operate in the UK, authorization has to be acquired from one of  the UK’s financial regulator – the FCA (Financial Conduct Authority) or PRA (Prudential Regulation Authority). 

fintech

EU’s Anti-Money Laundering Directive

The sixth anti-money laundering directive is found to have a more profound impact on different sectors of the Fintech industry. From cryptocurrencies to custodian wallet providers, AMLD has a more far-reaching influence and strengthens the regulatory controls across all sectors. 

Cryptocurrencies 

Platforms that offer cryptocurrency exchanges like Bitcoin will face more rigid regulatory controls. All virtual currency exchanges have to register with the relevant authority, conduct necessary customer due diligence (CDD) protocols and submit suspicious activity reports (SARs). Financial intelligence units (FIUs) have to maintain records with name and address of the customer dealing in digital currency. 

Prepaid Cards 

As per the AML directive, the threshold for prepaid cards has been set between €150 to €250, with a limit of €50 for online transactions. Furthermore, cards are only allowed in the region are unless a foreign provider that meets the AML standards issues them. Payments can only be accepted if the jurisdiction is meeting AML standards. 

Beneficial Ownership 

The directive now requires all the member states to maintain publicly available and interconnected ultimate beneficial ownership (UBO) registries. National authorities will have access to these registries for trusts and bank accounts. 

High-value Goods

High-value goods have been in use for money laundering activities for a long time. The AML directive has extended the range of goods that are now subject to new reporting requirements with updated thresholds. The goods include art, precious metals, artefacts, tobacco, and oil.  

High-risk Countries 

The European Union identifies countries as high-risk that have sub-standard AML regulations. Organizations dealing in any of these countries have to perform enhanced due diligence checks to ensure legitimacy of the source of funds. According to AMLD, the EU has established legal grounds for all the states and every nation is responsible for implementing the regulations as per the directive. 

Failure to abide by the laws will result in hefty penalties, damaged reputation and probably the loss of operating licences. All sectors have been guided to design rigid policies and robust AML/CFT infrastructure and this must be an ongoing effort. 

What Can Fintechs Do for Effective Compliance? 

Considering the diversity of Fintech industry, every sector has to re-evaluate and redevelop customer due diligence protocols according to the updated regulations. If you are operating in the Fintech industry, it all comes down to the following questions:

  • Are you complying with the country’s KYC/AML laws that you are serving in? 
  • What customer due diligence protocols are you currently following? 
  • Is your screening process providing higher customer acquisition rate or your drop-off is increasing? 
  • Is the process effective in all regions of the world? 

Avoid the hassles of an in-house identity verification system and employ a globally acclaimed identity verification system that deploys thousands of AI models to verify identities in less than a minute. Moreover, the solution has helped businesses increase customer acquisition rate. 

Want to know more about this solution? Get in touch with our experts right away!

Related Posts

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

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

Acquiring a Security Foothold in Hybrid Workspaces with Facial Recognition

In 2020, companies experimented with different ways of working as the result of lockdown and Covi...

Acquiring a Security Foothold in Hybrid Workspaces with Facial Recognition Explore More

Blog

Know Your Donor (KYD) – Eradicating Financial Crimes in NPOs and Charity Organizations

In 2020, US citizens alone donated more than $471 billion to charities. This generosity ultimatel...

Know Your Donor (KYD) – Eradicating Financial Crimes in NPOs and Charity Organizations 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

Pandora Papers Pushing Global Authorities to Bridge Regulatory Gaps

The Pandora Papers have made headlines for not only exposing offshore dealings of the rich but al...

Pandora Papers Pushing Global Authorities to Bridge Regulatory Gaps Explore More

Blog

How to Use Shufti’s ROI Calculator to Justify Better Identity Verification Outcomes

As the pressure to grow profits intensifies, many companies are thinking proactively on how to ef...

How to Use Shufti’s ROI Calculator to Justify Better Identity Verification Outcomes Explore More

Blog

NFTs and Surging Crimes – How Shufti’s AML/KYC Solution Can Secure The Digital Ecosystem

Non-Fungible Tokens (NFTs) are by far one of the most popular topics right now. Artist Mike Winke...

NFTs and Surging Crimes – How Shufti’s AML/KYC Solution Can Secure The Digital Ecosystem Explore More

Blog

Fraud Prevention – Challenges, Strategies, Best Practices, and Technologies

The twenty-first century is by far the most revolutionary time in the history of humans in terms ...

Fraud Prevention – Challenges, Strategies, Best Practices, and Technologies Explore More

Blog

CFT & AML Compliance To Hold Back Financial Crimes

In this digital era, many factors are greasing the wheel of money laundering. Due to online trans...

CFT & AML Compliance To Hold Back Financial Crimes Explore More

Blog

4 Ways How Technology Can Simplify KYC and AML Workflow Management

While the terms AML and KYC are used interchangeably, there is a huge difference between the two....

4 Ways How Technology Can Simplify KYC and AML Workflow Management Explore More

Blog, Fraud Prevention

Face Verification Technology Grooving in the Education Sector

We are now in a golden age of face recognition. The main reason for rapid adoption is recognition...

Face Verification Technology Grooving in the Education Sector Explore More

Blog

Forex Market – Are there Enough KYC/AML Regulations to Keep Perpetrators at Bay?

Regulatory pressure, hefty penalties and increasing criminal instances are some risks associated ...

Forex Market – Are there Enough KYC/AML Regulations to Keep Perpetrators at Bay? Explore More

Blog

Why online alcohol industry needs robust age verification solutions?

“Can I see some ID?” The question brick and mortar booze stores ask or at least should ask to ver...

Why online alcohol industry needs robust age verification solutions? Explore More

Blog, Online Marketplace

KYC Services and AML Compliance Services for Forex Industry

Forex Industry stands to benefit a lot by incorporating KYC services in addition to AML Complianc...

KYC Services and AML Compliance Services for Forex Industry Explore More

Blog

Optical Character Recognition (OCR) | Pushing the Boundaries of Data Extraction

There is a surging demand for swift and remote identity verification methods in our digital world...

Optical Character Recognition (OCR) | Pushing the Boundaries of Data Extraction Explore More

Blog

Gambling Regulations in Germany Lay Ground for Robust Player Verification

User engagement towards digital platforms has been growing at an exponential pace for the past fe...

Gambling Regulations in Germany Lay Ground for Robust Player Verification Explore More

Blog

The Role of Digital Identity in Business-Customer Relationship

Dealing with any business online have you ever wondered where this relationship would go? We all ...

The Role of Digital Identity in Business-Customer Relationship Explore More

Blog

An Insight into Online Dating Scams – How Identity Verification Helps

The impact of Covid-19 on businesses and the physical, mental health of individuals has been stre...

An Insight into Online Dating Scams – How Identity Verification Helps Explore More

Blog

What To Consider When Implementing Forensic Document Verification Services

As the demand for digital products and services has skyrocketed, so does the need for verificatio...

What To Consider When Implementing Forensic Document Verification Services Explore More

Blog

Know your patient process explained [Under the GPhC’s guideline]

How to make sure that the patient qualifies for purchasing a restricted medicine?  Or  Someone re...

Know your patient process explained [Under the GPhC’s guideline] Explore More

Blog

Leveling Up Identity Verification To Meet This Moment

Companies around the world contend with two digital identity challenges that seem mutually exclus...

Leveling Up Identity Verification To Meet This Moment 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

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

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

Blog

Metaverse and Money Laundering – How Shufti’s AML Screening Helps

For quite some time now, the world has been preparing itself for the latest development in multip...

Metaverse and Money Laundering – How Shufti’s AML Screening Helps Explore More

Blog

KYC Verification – The Significance of Identity Verification in the Telecom Industry

Increasing smartphone usage throughout the world has accounted for large amounts of data being sh...

KYC Verification – The Significance of Identity Verification in the Telecom Industry Explore More

Blog

Safeguarding Ride-Hailing Services with Identity Verification Solutions

With the global digitization, mobility services are known to the world before the pandemic has ir...

Safeguarding Ride-Hailing Services with Identity Verification Solutions Explore More

Blog

Enhancing the Effectiveness of KYC Checks with Shufti’s Forensic Document Verification

With emerging technologies and rapid digitization, identity fraud has become quite common, raisin...

Enhancing the Effectiveness of KYC Checks with Shufti’s Forensic Document Verification Explore More

Blog, Financial Crime / AML

Secure Crypto Wallets with e-KYC & AML Screening

Payment and funds’ transfer has taken a more digital turn in recent years, with the onset of Cryp...

Secure Crypto Wallets with e-KYC & AML Screening Explore More

Blog

A Brief Insight into Safe Havens for Russian Oligarchs

The recent Russia-Ukraine conflict has sparked the West to impose sanctions targeting the Russian...

A Brief Insight into Safe Havens for Russian Oligarchs Explore More

Blog

The Evolution of Video KYC: Revolutionise the Fintech Industry

FinTech encompasses financial organisations’ use of computing and communications tools to b...

The Evolution of Video KYC: Revolutionise the Fintech Industry Explore More

Blog

Cross-Border KYC Compliance | Understanding and Overcoming the Challenges

To handle money laundering incidents and rising regulatory pressure, the banking industry benefit...

Cross-Border KYC Compliance | Understanding and Overcoming the Challenges Explore More

Blog

Curbing Real Estate Crimes and Hunting Down Russian Investors with Shufti’s AML Screening Solution

The real estate industry has become attractive to money launderers in the same way it is to any l...

Curbing Real Estate Crimes and Hunting Down Russian Investors with Shufti’s AML Screening Solution Explore More

Blog

Louisiana Age Verification Compliance Updates 2024

 Age verification is crucial for online tasks like purchases and communication. The inte...

Louisiana Age Verification Compliance Updates 2024 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

Facial Verification – Curing Fraud in the Healthcare Sector

Healthcare professionals continue to be hot targets of bad actors and cybercriminals, with attack...

Facial Verification – Curing Fraud in the Healthcare Sector Explore More

Blog

Uncovering 5 Holiday Season Scams and How to Avoid them this Year

‘Tis the season when the best deals of the year are attracting customers towards online shopping ...

Uncovering 5 Holiday Season Scams and How to Avoid them this Year Explore More

Blog

The Crucial Role of Ongoing Monitoring in Risk Mitigation

The nature of a business-to-clientele relationship subjects organisations to significant risks. F...

The Crucial Role of Ongoing Monitoring in Risk Mitigation Explore More

Anti Money Laundering, Artificial Intelligence, Blog

AI a Blessing – AML compliance cost reduced by $217 billion

The U.S. financial firms spend approximately $25.3 Billion in terms of compliance, risk managemen...

AI a Blessing – AML compliance cost reduced by $217 billion Explore More

Blog

Enhancing the Effectiveness of KYC Checks with Shufti’s Forensic Document Verification

With emerging technologies and rapid digitization, identity fraud has become quite common, raisin...

Enhancing the Effectiveness of KYC Checks with Shufti’s Forensic Document Verification Explore More

Blog

Identity Verification entails a lot more than customer verification

Identity theft and digital fraud are on the rise. Cybersecurity is of essence for all the organis...

Identity Verification entails a lot more than customer verification Explore More

Blog

Top 5 Cybersecurity Trends to Look Out for in 2022

With 2022 just around the corner, new developments in cybersecurity are already beginning to take...

Top 5 Cybersecurity Trends to Look Out for in 2022 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

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, Reg Tech

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

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

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

Blog

Age Verification for Social Media – Protecting the Younger Victims of Online Scams

With a significant majority of students diverting from their usual school routines due to the COV...

Age Verification for Social Media – Protecting the Younger Victims of Online Scams Explore More

Blog

Combating 8 Prevalent Biometric Fraud Through a Single AI Solution

Considering how criminals are attempting new strategies to “steal a face”, companies are no longe...

Combating 8 Prevalent Biometric Fraud Through a Single AI Solution Explore More

Blog

Brazil to Launch CBDC: Its Impact on Financial Firms and How KYC/AML Can Help

Where does the cash come from? The country’s central bank authorises the printing of paper ...

Brazil to Launch CBDC: Its Impact on Financial Firms and How KYC/AML Can Help Explore More

Blog

Embedding online identity verification methods for enterprise security

The internet knows a lot about us now. And businesses are using this information to verify our di...

Embedding online identity verification methods for enterprise security 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

Biometric Technology, Blog, Identity & KYC

ID Verification API – Smooth Integration With Online Systems

The financial services (FS) sector has the highest ever recorded abandonment rate of 83.6% amongs...

ID Verification API – Smooth Integration With Online Systems Explore More

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

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, Fraud Prevention, Online Marketplace

Why Digital KYC is Important for Insurance Fraud Prevention

KYC For Insurance Companies : Basically, a system that can carry out real-time identity verificat...

Why Digital KYC is Important for Insurance Fraud Prevention 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

NFC Verification for Seamless Customer Onboarding

As more than 80% of today’s smartphones have NFC technology, different industries are working tow...

NFC Verification for Seamless Customer Onboarding Explore More

Blog

Anti-Money Laundering (AML) Screening | Combat Online Gambling Scams Effectively

Online gambling has seen significant adoption in the past few years because of the convenience, v...

Anti-Money Laundering (AML) Screening | Combat Online Gambling Scams Effectively Explore More

Blog

AML Screening – Revealing the True Identities of Ultimate Beneficial Owners in Businesses

Hiding the Ultimate Beneficial Owners (UBOs) behind a business is never a good sign. However, som...

AML Screening – Revealing the True Identities of Ultimate Beneficial Owners in Businesses Explore More

Blog

FINMA Report Indicates Unchanged Cybercrime and Money Laundering Risks

Money laundering, identity theft, and various other cyberattacks risk have been elevated over the...

FINMA Report Indicates Unchanged Cybercrime and Money Laundering Risks Explore More

Blog

The Importance of KYC Remediation to Prevent Financial Crimes

If we talk about financial institutions including banks and their processes, one can freely argue...

The Importance of KYC Remediation to Prevent Financial Crimes Explore More

Blog

Forex Market – Are there Enough KYC/AML Regulations to Keep Perpetrators at Bay?

Regulatory pressure, hefty penalties and increasing criminal instances are some risks associated ...

Forex Market – Are there Enough KYC/AML Regulations to Keep Perpetrators at Bay? 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

A Brief Insight into Crypto Regulations in the Asia-Pacific Region

The Asia-Pacific region is one of the areas with the highest rate of crypto adoption. Considering...

A Brief Insight into Crypto Regulations in the Asia-Pacific Region Explore More

Blog

Risk Assessment – Building Trust in Financial Institutions

For financial institutions to hold onto their customers, they must build and conserve advanced le...

Risk Assessment – Building Trust in Financial Institutions Explore More

Blog

Top Applications of Facial Recognition Technology in the Digital Age

Facial recognition technology is biometric security in which an individual’s physical trait...

Top Applications of Facial Recognition Technology in the Digital Age Explore More

Blog

How Shufti Ensures Gaming Regulatory Compliance with AML Screening for Online Gaming Platforms

The online gaming sector has revolutionized altogether along with emerging technologies. With adv...

How Shufti Ensures Gaming Regulatory Compliance with AML Screening for Online Gaming Platforms Explore More

Blog

Shufti’s ID Fraud Report: Reviewing 2022 and a Preview of 2023

Twenty years back, “identity theft” was imagined as pictures of shady figures rifling through gar...

Shufti’s ID Fraud Report: Reviewing 2022 and a Preview of 2023 Explore More

Blog

Why Digital Identity Verification is Booming – A Detailed Insight

According to the report “Digital Identity & Document Verification Market & Technology Ana...

Why Digital Identity Verification is Booming – A Detailed Insight Explore More

Blog

High-Risk Countries and The Significance of AML/CFT Regulations – How Shufti Can Help

Money laundering and terrorist financing are becoming a global concern. To overcome the risk of c...

High-Risk Countries and The Significance of AML/CFT Regulations – How Shufti Can Help Explore More

Blog

Enhanced Due Diligence Vs. Customer Due Diligence – The Practical Approach to Counter Cybercriminals

The nature of digital operations is changing, and users are now preferring to use remote services...

Enhanced Due Diligence Vs. Customer Due Diligence – The Practical Approach to Counter Cybercriminals Explore More

Blog

Addressing Business Challenges Using OCR Scanner

OCR text recognition is similar to how humans process and store information through reading. The ...

Addressing Business Challenges Using OCR Scanner 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