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

    Global KYC and AML Regulatory Updates To Watch for in 2022

    b-glo-img

    In 2022, the world continues to experience the serious aftermath of the coronavirus pandemic, yet the regulatory response is increasing along with the economic implications. So far, global watchdogs have collaborated with financial as well as non-financial institutions to assure that they play a crucial part in normalizing the global chaos. However, many firms have realized the power of unified regulations, yet many of them oppose the idea. 

    First and foremost, the aim of regulatory bodies is to secure the business’s primary operations, channel credit, supply chains, and security systems. Industries need to draw attention in areas, for instance, making service digital, seamless customer experience, and utmost data protection.

    b-sur-img

    Regulatory Update in the Finance Sector

    Bank of England, PRA, and FCA: Diversity and Inclusion in the Financial Sector

    In July 2021, financial watchdogs published a joint discussion draft on inclusion and diversity in the financial sector. The regulatory bodies find out that this can reduce groupthink, promote innovations, encourage debates, and can enhance results for the market as well as the clients, in support of financial stability. However, in this regard, the Financial Conduct Authority (FCA) and Prudential Regulation Authority (PRA) are intended to collaborate to make draft details more clear in the first quarter of 2022. However, the approved policy is expected to be issued in the third quarter. In addition to this, the Bank of England is also considering separately developing proposals to make the financial sector stable.

    FinCEN Final CDD Rule

    The FinCEN Final CDD Rule, which amends Bank Secrecy Act (BSA) standards and policies, aims to increase the transparency in the financial institutions and overcome the criminals from routing illicit cash out of the states. This rule further clarifies and improves the customer due diligence (CDD) regulations for US financial institutions including brokers, banks, and money exchanges. Under this amendment, the banks are required to determine and validate the true identities of clients, and beneficial owners of businesses before allowing them to carry out transactions or open an account.

    This rule comes up with four crucial aspects:

    1. Determining and verifying the customers’ identities
    2. Verify UBOs in case of business
    3. Understand the purpose and nature of customers to develop risk assessment systems
    4. Conduct ongoing monitoring and suspicious transaction reporting according to the client’s risk level

    Bank Secrecy Act (BSA) AML Regulation

    The Bank of Secrecy Act is US-based law that covers the financial activities in the country. It aims to secure the individuals as well as the financial firms from money laundering, terrorist financing, and proliferation financing. This AML compliance allows financial institutions to establish compliance programs, recordkeeping, suspicious activity reporting for national banks, and foreign banks. This Act emerged as an amendment to incorporate the provision of the US Patriot Act which mandates every bank to develop a customer identification program as part of the BSA compliance program.

    Following are the key aspects of BSA;

    1. Banks need to establish anti-money laundering programs to curb money laundering
    2. Financial institutions are obliged to incorporate identity verification systems to fulfill Know Your Customer compliance
    3. Under the BSA, banks are required to keep records of customers. Additionally, suspicious transaction activities, as well as transactions exceeding $10,000, must be reported to FinCEN 
    4. According to the BSA, financial institutions need to keep the records and reports for 5 years

    Regulatory Update for VA and VASPs

    Estonia Virtual Assets Regulations

    Estonia is one of the EU Member states that have acknowledged the true power of cryptocurrencies. Due to this, the country has come up with major amendments in its anti-money laundering regulations to legalize virtual assets service providers and cryptocurrencies. Estonia’s AML/CFT compliance is updated and streamlined with the EU’s sixth anti-money laundering directive.

    According to the updates, all the virtual asset service providers operating within the country are required to streamline their operation with Money Laundering and Terrorist Financing Prevention Act. This was updated back in 2020, which labeled VASPs as financial institutions. Therefore, the cryptocurrency exchanges and service providers need to hire an AML officer, implement FATF travel and VASPs standards. Additionally, businesses develop a risk-based approach to employ enhanced due diligence protocols to screen high-risk entities. Additionally KYC and SARs checks should also be fulfilled. However, the risk assessments and suspicious activities are to be reported to the FIU.

    Suggested Read: Estonia’s AML Act Amendments – Securing Virtual Currencies in 2022

    FATF Regulation for VAs and VASPs

    The Financial Action Task Force (FATF) has updated its guidance on the risk-based approach for cryptocurrencies and virtual asset service providers. The first draft was originally published in 2019 when FATF finalized the AML/CFT regulations for VA and VASPs. Following are the six amendments in FATF’s risk-based approach for cryptocurrencies;

    1. Clarified the definition of VA and VASPs
    2. Guidance regarding how to apply FATF standards on Stablecoins
    3. Standards for assessing potential risk for P2P transactions
    4. Amended licensing requirements for VASPs registering 
    5. Made travel rule obligatory for customers carrying virtual assets
    6. Includes crucial aspects of information-sharing and co-operation among VASP

    The aim of the update is to maintain a secure playing field for VASPs based upon the nature and type of financial services they are providing to streamline the FATF’s AML/CFT regulations.

    Suggested read: FATF’s Stance on Digitizing FIUs and Adopting A Risk-Based Approach for VAs

    6AMLD for Cryptocurrencies

    To enhance the fifth money laundering directive (5AMLD), the EU came up with the sixth anti-money laundering directive. This was majorly for the virtual assets exchanges and digital wallets service providers within the European Member states to curb money laundering activities through cryptocurrencies. This was a major breakthrough to regulate virtual assets and VASPs. Under this law, all crypto businesses are needed to perform customer due diligence, ongoing client monitoring, maintain suspicious transaction reports and risk assessment to make customer risk profiles. Other than this, crypto exchanges are needed to get registered with FCA in the UK. In addition to this, 6AMLD has also come up with strict and rigid punishments for non-compliant businesses and individuals found guilty in money laundering proceedings. The imprisonment is increased from one to 4 years. Other than this, sanctions and hefty fines are also listed.

    ​​Suggest Read: 6AMLD of EU – A detailed insight

    To Sum Up… 

    Every year, regulatory bodies come up with new laws or amendments to secure the digital landscape. Due to the Covid pandemic, criminal activities skyrocketed, which was an eye-opener for the regulatory bodies. Various regulations are legislated like AML, KYC and CFT to curb financial crimes.

    Shuftis’ state-of-the-art identity verification and AML screening solution is an ideal option for financial and non-financial firms to fight financial crimes. Shufti screens identities against 1700+ watchlists in less than a second and helps businesses to stay put with global regulatory compliances.

    For information on how we can help you in KYC/AML compliance, get in touch with our experts.

    Related Posts

    Blog

    Pension Fund Fraud and the Role of Employee Identity Verification

    Old age is the scariest phase of life for everyone and organisations find it a big challenge to c...

    Pension Fund Fraud and the Role of Employee Identity Verification Explore More

    Blog

    KYC screening vs One time passwords – what’s good for your business?

    Customer due diligence sometimes tests the nerves of strategists and compliance officers. With mu...

    KYC screening vs One time passwords – what’s good for your business? Explore More

    Blog, Business Technology, Online Marketplace

    Asian Banks push for greater Fintech to cut down AML Compliance cost

    Asian Banks are now asking their regional and national regulators to allow more fintech in order ...

    Asian Banks push for greater Fintech to cut down AML Compliance cost Explore More

    Blog

    The need for identity verification solutions spiking in demand

    At present, we are living in a digital world. Everyone is on the internet which is an anonymous s...

    The need for identity verification solutions spiking in demand Explore More

    Blog

    Anti-Money Laundering (AML) Solution- Eradicating Money laundering and Securing Ride-Hailing Services

    Due to the coronavirus global pandemic, the ride-hailing sector continue to grapple. As per new e...

    Anti-Money Laundering (AML) Solution- Eradicating Money laundering and Securing Ride-Hailing Services Explore More

    Blog, Fraud Prevention

    Looking for Online Fraud Prevention: Here Is What You Can Do

    In an increasingly digital world, it is extremely important for online businesses to identify fra...

    Looking for Online Fraud Prevention: Here Is What You Can Do Explore More

    Blog

    The Complete Guide | Identifying Fake Documents

    Many application processes have become easier and faster due to digital transformation. This is b...

    The Complete Guide | Identifying Fake Documents Explore More

    Blog

    KYC For Sharing Economy – Building a Safe & Trusted Environment that Retains Customers

    “Sharing Economy” is a term that has become popular in recent years, and the current digital worl...

    KYC For Sharing Economy – Building a Safe & Trusted Environment that Retains Customers 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

    Europol launches European Financial and Economic Crime Center (EFECC)

    Financial and economic crimes are today the leading threats that are affecting millions of EU cit...

    Europol launches European Financial and Economic Crime Center (EFECC) 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

    AML Compliance for the Crypto Sector – How VASPs Can Adhere to the Regulations

    With cryptocurrencies gaining traction and entering the mainstream, financial regulators are asse...

    AML Compliance for the Crypto Sector – How VASPs Can Adhere to the Regulations 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

    Safeguarding Telecommunication Industry with Robust ID Verification Solutions – What Shufti Offers

    Technology transformation, growing transactions and global digitisation are increasing the potent...

    Safeguarding  Telecommunication Industry with Robust ID Verification Solutions – What Shufti Offers Explore More

    Blog

    The Crucial Role of Face Liveness Check in Fintech

    Fintech firms lose approximately $51 million to scams annually. However, the cost of fintech frau...

    The Crucial Role of Face Liveness Check in Fintech 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

    UAE Government Stepping Up Against Prevalent Crimes

    The UAE is known for being home to flourishing businesses and providing a significant level of fi...

    UAE Government Stepping Up Against Prevalent Crimes 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, Identity & KYC, Online Marketplace

    Age Verification – Does Your Business Need It?

    Several businesses are unaware of the significance that age verification holds for their business...

    Age Verification –  Does Your Business Need It? Explore More

    Blog

    Red Flags to Detect Money Laundering in the Finance Sector

    As the digital landscape continues to evolve at an exponential rate, so do our tools for fraud- d...

    Red Flags to Detect Money Laundering in the Finance Sector Explore More

    Blog

    Contact-free ID authentication – combating fraud during COVID-19 outbreak

    Coronavirus outbreak, which was initially thought of as some sort of common flu in the Chinese ci...

    Contact-free ID authentication – combating fraud during COVID-19 outbreak Explore More

    Blog

    KYC Verification – Fraud Prevention in FinTech & the Payments Industry

    The growth of the online payment industry and FinTech companies comes with a simultaneous increas...

    KYC Verification – Fraud Prevention in FinTech & the Payments Industry Explore More

    Blog, Financial Crime / AML

    AMLD5 Amendments in Prepaid Cards Transaction Threshold

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

    AMLD5 Amendments in Prepaid Cards Transaction Threshold Explore More

    Blog

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

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

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

    Anti Money Laundering, Blog

    Danske Bank Scandal: Banks Under Strict AML Scrutiny of FSA

    Money laundering is becoming a global phenomenon. As per the United Nations Office on Drug and cr...

    Danske Bank Scandal: Banks Under Strict AML Scrutiny of FSA Explore More

    Blog

    5 Predictions on the Future of Digital KYC and eKYC

    It’s 2023. Welcome to the day and age of digital KYC verification. From multiple copies of ID car...

    5 Predictions on the Future of Digital KYC and eKYC Explore More

    Blog

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

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

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

    Blog

    4 Tips to avoid digital payment frauds

    Due to the contingency caused by the rapid expansion of the Covid-19, online transactions have in...

    4 Tips to avoid digital payment frauds 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

    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, 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

    Online Identity Verification: 5 Trends to Expect in 2021

    The boom in digitisation forced businesses to opt for digital means of operations. Online busines...

    Online Identity Verification: 5 Trends to Expect in 2021 Explore More

    Blog

    The Expected No-Deal Brexit and AML/CFT Laws in the UK

    The current prime minister of the UK Mr. Boris Johnson made a statement that the UK should be rea...

    The Expected No-Deal Brexit and AML/CFT Laws in the UK 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

    Is NFC Really the Future? The Mystery Solved!

    We arguably live in a world that is now dependent on technology. From online payments to online e...

    Is NFC Really the Future? The Mystery Solved! Explore More

    Blog

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

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

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

    Blog

    4 WAYS AI is Shaping KYC and AML Compliance for Businesses

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

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

    Blog

    Elevating Document Verification with OCR in 2024 | Data Extraction in Real-Time

    The Optical Character Recognition (OCR) market was valued at US$15 billion in 2019 and is expecte...

    Elevating Document Verification with OCR in 2024 | Data Extraction in Real-Time Explore More

    Blog

    How Optical Character Recognition is Changing the Financial Industry

    Banking and other financial services are the world’s most closely watched and strictly gove...

    How Optical Character Recognition is Changing the Financial Industry Explore More

    Blog

    COVID-19 Pandemic – What it holds for businesses?

    The year of the Rat, 2020, didn’t get a propitious start because of the deadly coronavirus outbre...

    COVID-19 Pandemic – What it holds for businesses? Explore More

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

    Global Economies are joining forces with FATF against money laundering

    Financial Action Task Force (FATF) has been very keen on eliminating financial crime (money laund...

    Global Economies are joining forces with FATF against money laundering Explore More

    Blog

    Balancing UX and Security in the Finance Sector with Biometric Authentication

    The global coronavirus outbreak transformed financial operations and forced retailing banks to te...

    Balancing UX and Security in the Finance Sector with Biometric Authentication Explore More

    Blog

    Top 4 Reasons that will Increase Money Laundering Risks in 2022

    Unlike other frauds, like like tax evasion, drug trafficking, extortion, and misappropriation of ...

    Top 4 Reasons that will Increase Money Laundering Risks in 2022 Explore More

    Blog

    Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector

    Banks are thought to be the most important part of the financial system, playing a vital role in ...

    Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector 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

    An Insight into Money Laundering Through the UAE’s Gold Industry

    Since the beginning of time, gold has been considered a medium for payment and trading with its e...

    An Insight into Money Laundering Through the UAE’s Gold Industry Explore More

    Blog, Identity & KYC

    Why does ID verification fail?

    Know Your Customer (KYC) encompasses an array of practices implemented within organisations to de...

    Why does ID verification fail? Explore More

    Blog, Online Marketplace

    KYC for customer on-boarding in Telecommunications Industry

    Identity Verification is quite necessary for Telecommunications Industry in today’s digital...

    KYC for customer on-boarding in Telecommunications Industry Explore More

    Blog

    Enhancing Workplace Safety: The Role of Employment Screening

     Recruiting new hires can often be a daunting task, as it is a time-consuming and work-i...

    Enhancing Workplace Safety: The Role of Employment Screening Explore More

    Blog

    Top 5 Digital Banking Trends to Look Out for in 2022

    2021 was fundamentally geared towards surviving the pandemic and its aftermaths. The pandemic-acc...

    Top 5 Digital Banking Trends to Look Out for in 2022 Explore More

    Blog

    Mobile Banking Adoption and the Rising Fraud Concerns Worldwide

    People have been repeatedly talking about the COVID-driven digital “transformation” in the bankin...

    Mobile Banking Adoption and the Rising Fraud Concerns Worldwide Explore More

    Blog

    Infographics

    To develop a simple and easy understanding of e-KYC and the role played by Shufti’s digital i...

    Infographics 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

    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

    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

    Navigating the Evolving Landscape of Forex Trading: Insights from Hachem Rifai

    The foreign exchange (Forex) market stands apart as the largest and most liquid financial market ...

    Navigating the Evolving Landscape of Forex Trading: Insights from Hachem Rifai Explore More

    Blog

    Cyber Monday Scams on the Rise Due to COVID-19

    Thanksgiving – a day that reminds us of all the bounties of Mother Nature that we should be...

    Cyber Monday Scams on the Rise Due to COVID-19 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

    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

    Know Your Patient – Curbing Healthcare Fraud through Identity Verification

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

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

    Blog

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

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

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

    Blog

    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

    “Brexit” Greasing the Wheel of Money Laundering

    Brexit is in the global news for many years. The reason is that several countries have their stak...

    “Brexit” Greasing the Wheel of Money Laundering Explore More

    Blog, Online Marketplace

    Social Media and Identity Theft Frauds

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

    Social Media and Identity Theft Frauds Explore More

    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

    Japanese FSA to Beef Up AML Systems from Fiscal 2021

    Growth in South Asia has far exceeded that in any other country over the past few years and digit...

    Japanese FSA to Beef Up AML Systems from Fiscal 2021 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

    KYC Verification – Fraud Prevention in FinTech & the Payments Industry

    The growth of the online payment industry and FinTech companies comes with a simultaneous increas...

    KYC Verification – Fraud Prevention in FinTech & the Payments Industry Explore More

    Blog, Online Marketplace

    How API-based Technologies Can Transform the Future of Online Marketplace

    API Based Technologies: Application Programming Interfaces (APIs) are giving advanced ways of dig...

    How API-based Technologies Can Transform the Future of Online Marketplace Explore More

    Blog

    Anti-Smurfing Solutions | Safeguard Your Business Against Money Laundering Risks

    Businesses are under constant threat of financial damage. This is primarily because cybercriminal...

    Anti-Smurfing Solutions | Safeguard Your Business Against Money Laundering Risks Explore More

    Blog

    FINTRAC Amends PCMLTFA – More AML Requirements for Reporting Entities

    The rise in money laundering, terror financing and other financial crime has encouraged regulator...

    FINTRAC Amends PCMLTFA – More AML Requirements for Reporting Entities Explore More

    Blog

    7 Ways to Protect Business and Remote Staff from Cybercriminals

    Businesses are facing ‘new normal’ as the workplace has shifted from offices to homes amid corona...

    7 Ways to Protect  Business and Remote Staff from Cybercriminals 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