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, Identity & KYC

    How Real ID Act enables Digital KYC Services for US Customers?

    Digital KYC Services for US based customers are in debt of Real ID Act as it streamlined the proc...

    How Real ID Act enables Digital KYC Services for US Customers? Explore More

    Blog

    10 Ways to Eliminate Business Fraud with Robotic Process Automation (RPA)

    One of the prime concerns of businesses today is detecting and mitigating the risk of fraud. This...

    10 Ways to Eliminate Business Fraud with Robotic Process Automation (RPA) 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

    Latest Gaming & Gambling Regulations Worldwide and the Role of Age Verification

    Online gaming has become more popular since COVID-19. The pandemic forced people to stay indoors,...

    Latest Gaming & Gambling Regulations Worldwide and the Role of Age Verification Explore More

    Blog

    5 Best Practices to Combat Identity Fraud on Social Media Platforms

    Social media has demonstrated extraordinary growth in the past decade as a result of improvements...

    5 Best Practices to Combat Identity Fraud on Social Media Platforms 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

    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

    Top 6 Practises For Your Business To Pinpoint Key Risk Areas

    As global industries continue to evolve and digitise, customer risk assessment has become a criti...

    Top 6 Practises For Your Business To Pinpoint Key Risk Areas Explore More

    Biometric Technology, Blog, Business Technology

    Speed Up customer Onboarding with Online Facial Recognition

    Banks are spending loads to digitize their operations. The competition is mounting, plus, people ...

    Speed Up customer Onboarding with Online Facial Recognition Explore More

    Blog

    Securing Identities in the Age of AI with Facial Recognition Technology

    Although the digital revolution has brought us unprecedented levels of connectivity and comfort, ...

    Securing Identities in the Age of AI with Facial Recognition Technology Explore More

    Blog

    CCPA: A Real Roller Coaster for Business Entities

    One huge change in 2020 is the new data privacy law called the California Consumer Privacy Act or...

    CCPA: A Real Roller Coaster for Business Entities 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

    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

    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, Identity & KYC

    Digital Document Verification Giving Wing to Recruitment Sites

    Document Verification: In an industry that’s all about people, it’s critical that you know that a...

    Digital Document Verification Giving Wing to Recruitment Sites Explore More

    Blog

    Navigating the New Era of Customer Identity: Strategies for Compliance Professionals

    Introduction The identity verification and authentication landscape is undergoing a rapid transfo...

    Navigating the New Era of Customer Identity: Strategies for Compliance Professionals Explore More

    Blog

    Source of Funds | A Critical Step in Mitigating the Risk of Money Laundering

    As the world continues on a path of digitization, business operations persist to undergo signific...

    Source of Funds | A Critical Step in Mitigating the Risk of Money Laundering 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

    6 Industry Experts Share Their Thoughts on NFC ID Verification

    Thanks to the growth of contactless transaction systems like Apple Pay, NFC is now a mainstream t...

    6 Industry Experts Share Their Thoughts on NFC ID Verification 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

    The Worldwide Response on Covid Vaccine Passports – A Brief Insight

    One question that is being asked around the world with great urgency is, would freedom be granted...

    The Worldwide Response on Covid Vaccine Passports – A Brief Insight Explore More

    Blog

    6 Upcoming Trends In Blockchain And Cryptocurrency For 2021

    2020 was unlike any other year. It was chaotic, happening, and has finally come to an end. In the...

    6 Upcoming Trends In Blockchain And Cryptocurrency For 2021 Explore More

    Blog

    Corporate Transparency Act – The Road to Better AML Compliance

    According to the latest reports, the United States ranked number 1 for not complying with the ant...

    Corporate Transparency Act – The Road to Better AML Compliance Explore More

    Blog, Business Technology

    Why have IPOs started Implementing Digital KYC?

    Have you heard the phrase “I’m afraid we have to go public Mark”, well then you are on right page...

    Why have IPOs started Implementing Digital KYC? 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, Reg Tech

    Effect of the Amendment to the FINMA Compliance on IDV Service Providers

    In the first quarter of the year 2018, the Swiss Financial Market Supervisory Authority rolled ou...

    Effect of the Amendment to the FINMA Compliance on IDV Service Providers Explore More

    Blog, Identity & KYC

    Can Identity Verification Services be Cheated by Hackers?

    The latest intervention in the industry of fraud prevention services is identity verification ser...

    Can Identity Verification Services be Cheated by Hackers? Explore More

    Blog, Identity & KYC

    4 Ways KYC Banking Regulations are Shaping the Future

    Know Your Customer (KYC) regulations are vital for the banking system. Money laundering, depositi...

    4 Ways KYC Banking Regulations are Shaping the Future Explore More

    Blog

    SEPA Instant Credit Transfer Schemes – Disrupting the Financial Sector in 2023

    There is no denying the fact that the financial industry has vital importance in the contemporary...

    SEPA Instant Credit Transfer Schemes – Disrupting the Financial Sector in 2023 Explore More

    Blog

    Perpetual KYC: The Future of Due Diligence in the Financial Industry

    Digital transformation is paving the way for quick growth in the compliance sphere. However, regu...

    Perpetual KYC: The Future of Due Diligence in the Financial Industry Explore More

    Blog

    How Can 2-Factor Authentication Protect Customers Against Fraud?

    Need for Customer Authentication Mechanisms Since the existence of humanity, new innovations and ...

    How Can 2-Factor Authentication Protect Customers Against Fraud? 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

    Legal Entity Identifier (LEI) — What it means and how it helps financial institutions?

    The need for trusted digital communication in this age is crucial due to increasing cybercrimes. ...

    Legal Entity Identifier (LEI) — What it means and how it helps financial institutions? Explore More

    Blog

    AML Compliance – Addressing the Threat of Money Laundering in NFT Marketplaces

    The NFT marketplace is flourishing even though the top platforms do not always comply with Anti-M...

    AML Compliance – Addressing the Threat of Money Laundering in NFT Marketplaces Explore More

    Blog

    Shufti Celebrates 5 Years of Innovation in the IDV Industry

    October 2022 marks Shufti’s 5th anniversary – five successful years of building trust globall...

    Shufti Celebrates 5 Years of Innovation in the IDV Industry Explore More

    Blog

    Forensic Document Forgery Analysis – A Landmark Approach to Curb Identity Fraud

    With online services picking up pace, cybercriminals are ramping up their  digital attacks and us...

    Forensic Document Forgery Analysis – A Landmark Approach to Curb Identity Fraud Explore More

    Blog

    Industries that Need Digital Identity Verification and Why?

    With continuous improvements in technology, different industries of the world are streamlining th...

    Industries that Need Digital Identity Verification and Why? 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

    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

    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

    Digital Identity Verification for Open Finance & FinTech Platforms

    Financial applications in the modern world have been sub-categorized into open and closed banking...

    Digital Identity Verification for Open Finance & FinTech Platforms Explore More

    Blog

    A Comprehensive Guide to AML Compliance [2020]

    Anti-money laundering (AML) laws are the primary target of regulatory authorities. These regimes ...

    A Comprehensive Guide to AML Compliance [2020] Explore More

    Biometric Technology, Blog

    Warning: You’re Losing Money by not Using Biometric Identification

    On the surface, Biometric Identification might seem as if it’s only useful for opening your bank ...

    Warning: You’re Losing Money by not Using Biometric Identification 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, Online Marketplace

    Why age verification matters to online businesses?

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

    Blog

    NFT Trading and Money Laundering – How Shufti’s AML Screening Helps Combat Financial Crimes

    With revolutionary technologies and growing digitization, the digital version of artworks known a...

    NFT Trading and Money Laundering – How Shufti’s AML Screening Helps Combat Financial Crimes Explore More

    Blog

    Digital Passports Driving the need for Biometric Verification at Airports

    Digital or chipped biometric passports have automated the verification process at airports. The e...

    Digital Passports Driving the need for Biometric Verification at Airports Explore More

    Blog

    Covid Report Verification: New Restriction for Airports

    The Covid-19 cases have drastically increased over time and as of February 6, 2021, 18,262 new ca...

    Covid Report Verification: New Restriction for Airports 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, Business Technology

    4 Fintech trends to look forward in 2019

    FInTech has come a long way from being a mere futuristic technology and has achieved scalability ...

    4 Fintech trends to look forward in 2019 Explore More

    Blog

    KYC Verification – The Need for Customer Due Diligence in Co-Working Spaces

    The development of coworking platforms has led to a business transformation that brings security ...

    KYC Verification – The Need for Customer Due Diligence in Co-Working Spaces Explore More

    Blog

    Financial Institutions and Prevailing Crimes – How Shufti’s AML Screening Solution can Help

    The year 2021 has been a year of two halves, the first businesses and individuals were dealing wi...

    Financial Institutions and Prevailing Crimes – How Shufti’s AML Screening Solution can Help 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

    AI face recognition for total automation

    Face recognition is everywhere but still we’re unable to say goodbye to document, maybe because w...

    AI face recognition for total automation Explore More

    Blog

    Video KYC Verification – Reimaging Customer Onboarding in 2023

    As technology is advancing so do fraudsters, ringing security alarms for financial businesses and...

    Video KYC Verification – Reimaging Customer Onboarding in 2023 Explore More

    Blog

    How the US Aims to Fight Financial Crimes and Global Corruption in 2022

    2022 is looking like the year of change in the USA when it comes to combating illicit financial c...

    How the US Aims to Fight Financial Crimes and Global Corruption in 2022 Explore More

    Blog, Identity & KYC

    What are the Different Types and Solutions of ID Verification?

    Customer identification is not an option for some businesses, it’s a must. Ignoring due diligence...

    What are the Different Types and Solutions of ID Verification? Explore More

    Blog

    The New Face of Authentication (*hint: you’ve seen it before!) 

    Companies face the daunting tasks of securing their data against the evolving threat of fraud whi...

    The New Face of Authentication (*hint: you’ve seen it before!)  Explore More

    Blog

    Effectiveness of the UK’s Economic Crime Bill in Combating Financial Crime

    The Russian invasion of Ukraine has resulted in a surge in financial crimes in the UK as Russian ...

    Effectiveness of the UK’s Economic Crime Bill in Combating Financial Crime Explore More

    Blog

    Digital Currency – Replacing Fiat Money in the Modern World

    Technological advancements are leading to better transaction systems in different states. Cryptoc...

    Digital Currency – Replacing Fiat Money in the Modern World 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

    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

    AML Compliance – Identifying the Red Flags Money Laundering in the Real Estate Sector

    Purchasing real estate is an attractive way for money launderers to legitimise larger amounts of ...

    AML Compliance – Identifying the Red Flags Money Laundering in the Real Estate Sector Explore More

    Blog

    Perpetual KYC – Securing Businesses through Continuous Identity Verification

    With regulatory scrutiny increasing globally, failures or loopholes in security systems pose a si...

    Perpetual KYC – Securing Businesses through Continuous Identity Verification 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

    AML Screening – Securing Alternative Payment Market and Overcoming Prevailing Risk of Crimes

    Escalating demand for innovative, new, and robust alternative payment options across the world is...

    AML Screening – Securing Alternative Payment Market and Overcoming Prevailing Risk of Crimes Explore More

    Blog

    An Insight into AML Compliance in the Financial Sector [2022 Update]

    The increasing global attention towards anti-money laundering (AML) and countering the financing ...

    An Insight into AML Compliance in the Financial Sector [2022 Update] Explore More

    Blog

    Fintech Compliance – Boogeyman for Trillion Dollar Industry?

    Fintech industry is flexing its muscle by bringing onboard more and more customers and innovating...

    Fintech Compliance – Boogeyman for Trillion Dollar Industry? Explore More

    Blog

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams

    Businesses need to bring on reliable partners and investors who can contribute to growth, provide...

    Detecting & Preventing KYI Fraud | A Deep-Dive into 2023 Investment Scams Explore More

    Blog

    Know Your Patient (KYP) – Effective Way to Prevent Identity Fraud and Safeguard Health Care Services

    Like other industries, the medicare industry is also experiencing digitization. However, the heal...

    Know Your Patient (KYP) – Effective Way to Prevent Identity Fraud and Safeguard Health Care Services Explore More

    Blog

    DHSC’s Counter-fraud Strategy to Combat Healthcare Fraud

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

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

    Blog, Online Marketplace

    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

    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