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

    High-Risk Transactions – How Can Enhanced Due Diligence (EDD) Help?

    blogimages12

    In today’s continuously evolving world, businesses should not only focus on the revenue they generate but also the type of customers they are dealing with. This means that verifying identities of all the stakeholders is mandatory. Businesses classify customers into different categories based on the risk associated with them. To ensure that all the customers are legitimate and do not bring any challenges for enterprises, Customer Due Diligence (CDD) is made compulsory by regulatory authorities. However, CDD cannot help in mitigating the risk of dealing with high-risk customers like blacklisted individuals or nationals of sanctioned states. Since KYC and AML compliance have become more rigid now, Enhanced Due Diligence (EDD) is a great way to help your business. You can read everything about enhanced due diligence in this blog.   

    What Does FATF Suggest for High-Risk Transactions?

    Financial Actions Task Force (FATF) recommends the risk-based approach for dealing with high-risk transactions or customers. All companies, especially financial institutions, are directed to develop a risk-based approach (RBA) for their company and assess money laundering and terrorist financing activities. They must take AML and CFT measures to mitigate the risk of such transactions effectively. Companies must assess the impact of high-risk transactions on their business in the RBA. As per the FATF’s 40 recommendation, the risk-based approach enables states to adopt flexible measures for targeting their resources effectively. 

    blogimaages12

    Process of EDD for High-Risk Transactions

    The process of Enhanced Due Diligence is very simple and takes only a few minutes for completion. As per the guidelines from different regulatory authorities, here’s the process of EDD:

    Step 1: Risk-Based Approach 

    First, a risk-based approach is developed for classifying all the customers into different categories. Classification helps in better understanding of the customers and acquiring appropriate information becomes convenient for the company. 

    Step 2: Create an Enhanced Due Diligence Checklist 

    Now, a checklist is created for Anti-Money Laundering policies and KYC checks for high risk clients. It is also known as the enhanced due diligence checklist and provides all the essential information collectively. 

    Step 3: Analyse Source of Funds and UBO

    Knowing the customers’ source of income is crucial since illegally earned money should not be allowed to enter your business. For more effective verification, the value of all financial and non-financial assets of the client must be known. Lawfulness of the source of funds is essential for enhanced due diligence. If we find any discrepancies in the records or statements, the verification is immediately stopped. In case of B2B transactions, subsidiaries and beneficial owners of the entity must be verified during the screening of Ultimate Beneficial Ownership (UBO) of the company. 

    Step 4: Ongoing Transaction Monitoring 

    In this step, the transaction history of the customers is checked. Duration of the transactions, receivers of the payments, and similar details are considered while monitoring transactions. Apart from these details, transaction monitoring in enhanced due diligence also considers the threshold of every transaction made by the customer. 

    Step 5: Analyse Local Reputation of the Business

    Sometimes, all the information available may not be able to give an idea of the position of brand among the local customers. To tackle high-risk transactions, enhanced due diligence checks also review the local reputation of the business. This is done by reviewing local media such as social media platforms, news, etc. 

    Step 6: Physical Address Verification

    Since it is enhanced due diligence for high-risk transactions, the address is verified by physical visits as well. This is done to verify proof of address i.e. the address in the identity document exists in reality as well and the client is associated with it too. In case physical address verification is not possible, online address verification through latest documents such as bank statements, utility bills must be performed to control risk.

    blogimageas12

    EDD Entails More than Identity Verification

    Apart from enhanced due diligence’s role as an identity verification measure and fraud prevention, it has numerous other benefits too. Here are some of the perks that your business can enjoy after employing enhanced due diligence.

    EDD Enhancing Your Customers Experience

    As the aforementioned enhanced due diligence process has made it clear, there is plenty of information required for conducting the identity verification. All the available information will not only help you in verifying the identity of customers with high-risk transaction records, but it will also assist you in providing better services to the customers according to their preferences. 

    Keep Your Company’s Files Clean

    While performing enhanced due diligence checks, you can prevent dirty money or illegally earned money from entering your business’s ecosystem. Maintaining clean files with all white transactions is what companies dream of and EDD verification can help you achieve that goal. You are not only verifying an individual, but all the entities associated with the business like its shareholders. Enhanced security layers will keep your business protected from money laundering and other criminal activities. 

    Build Credibility in the Industry 

    Building a positive brand image can not only be achieved through corporate social responsibility (CSR) but it is also achieved through enhanced due diligence. All the other businesses in the industry will trust you since all the transactions are strictly monitored and everyone is well aware of the fact that you do not have any high-risk clients onboarded. 

    Keep Fraud Schemes at Bay

    Not just money laundering, but other fraud schemes like terrorist financing and account takeover can be prevented too. You can focus more on business growth and higher profits since financial crimes are at bay with enhanced due diligence. KYC/AML compliance have become more rigid and adding enhanced due diligence has become the need of the hour to prevent crimes. You can read our KYC guide to know more about the evolving laws. 

    blogimagses12

    Summing It Up

    It all narrows down to one point – enhanced due diligence is the key to tackling high risk transactions and customers in no time. The process requires all major and minor details of the transaction to ensure accurate verification. Moreover, it has numerous other benefits apart from the robust identity verification checks. It makes your business credible for other business entities and customers. You can keep all financial crimes at bay with enhanced due diligence. 

    Shufti’s KYC and AML screening ensures that all the high-risk customers are identified on time so that you can keep your business secure. Furthermore, our KYC services are especially designed to streamline the customer onboarding process. 

    For more information about enhanced due diligence and know your customer, talk to our experts now.

    Related Posts

    Blog

    Facial Recognition Kiosks: A Modern Innovation in the Food Industry?

    Background of Technological Advancement Technology is regarded as a new way of thinking or doing ...

    Facial Recognition Kiosks: A Modern Innovation in the Food Industry? Explore More

    Blog

    Top 5 Reasons Why Businesses Need Transaction Monitoring Solution

    Companies are moving towards digitisation, meanwhile, cybercriminals are mastering the art of exp...

    Top 5 Reasons Why Businesses Need Transaction Monitoring Solution Explore More

    Blog

    KYC Compliance Will Become Your Competitive Edge

    Businesses, particularly the financial services sector, have been observing Know Your Customer KY...

    KYC Compliance Will Become Your Competitive Edge Explore More

    Blog

    Regulatory Compliance | The Importance of Age Verification on Betting Sites

    Online betting sites and gambling platforms frequently face significant challenges in adhering to...

    Regulatory Compliance | The Importance of Age Verification on Betting Sites Explore More

    Blog

    AML Compliance – Sharpening Focus on FinCrime in the Payments Industry

    Conventional payment services are embracing technological transformation, which is significantly ...

    AML Compliance – Sharpening Focus on FinCrime in the Payments Industry Explore More

    Blog

    Phishing Attacks and the Role of Two-Factor Authentication

    In today’s digital world, almost everything we do is on the internet, be it for official purposes...

    Phishing Attacks and the Role of Two-Factor Authentication Explore More

    Blog

    KYC and AML For Fintech | A Comprehensive Guide to Fraud Prevention

    Since governments worldwide are increasing the pressure to regulate, compliance has become a key ...

    KYC and AML For Fintech | A Comprehensive Guide to Fraud Prevention 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

    Blog

    Address Verification: Types, Benefits, and Best Practices

    Improving customer service and combating fraud frequently requires swiftly gathering and confirmi...

    Address Verification: Types, Benefits, and Best Practices Explore More

    Blog

    Protect Your Business Against Identity Theft with Face ID Check

    The efficacy of biometric authentication becomes questionable in the face of facial ID checks. It...

    Protect Your Business Against Identity Theft with Face ID Check 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

    Shufti’s Growth Skyrockets Above 100% in the Fiscal Year 2020

    In 2020, Shufti witnessed a remarkable growth of over 100%. Together with this, it can comfor...

    Shufti’s Growth Skyrockets Above 100% in the Fiscal Year 2020 Explore More

    Blog

    10 High-Risk Jurisdictions for Money Laundering According to FATF

    Innovations like stablecoins and non-fungible tokens (NFTs) created quite the hype in the past ye...

    10 High-Risk Jurisdictions for Money Laundering According to FATF Explore More

    Blog

    Top 10 Cybersecurity Trends for 2021

    Cybersecurity in 2020 became the biggest challenge thanks to the COVID-19 pandemic. Global lockdo...

    Top 10 Cybersecurity Trends for 2021 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

    Fighting Financial Crimes and Securing Gambling Services with Shufti’s AML Screening Solution

    Historically, the measures to curb money laundering and terrorist financing had only been only im...

    Fighting Financial Crimes and Securing Gambling Services with Shufti’s AML Screening Solution Explore More

    Blog

    Avoid Non-Compliance Fines with AML Transaction Monitoring

    Cybercriminals in the realm of fraud and financial crime are constantly revising exploitation met...

    Avoid Non-Compliance Fines with AML Transaction Monitoring 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

    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

    The Relentless Rise of Fraud in the FinTech Industry – How CDD Helps

    Fraud has always been on the rise ever since the advent of the FinTech industry. As perpetrators ...

    The Relentless Rise of Fraud in the FinTech Industry – How CDD Helps Explore More

    Blog

    Biometric Authentication is Smart but AI Makes it Smarter – Here is How

     In the ongoing digital age security is a top priority concern of any organization. Data is a maj...

    Biometric Authentication is Smart but AI Makes it Smarter – Here is How Explore More

    Blog

    Top 10 Forged ID Documents on the Dark Web in 2023

    As criminal activity increases every year, the massive amounts of data being uploaded to the inte...

    Top 10 Forged ID Documents on the Dark Web in 2023 Explore More

    Blog, Financial Crime / AML, Identity & KYC, Reg Tech

    Significance of AML Compliance in Money Services Business

    The financial sector landscape is evolving with the advent of the FinTech industry. Many revoluti...

    Significance of AML Compliance in Money Services Business Explore More

    Blog

    A Brief Insight into the AML and CFT Framework of Thailand

    Thailand has become quite a popular and well-reputed financial hub, attracting investors worldwid...

    A Brief Insight into the AML and CFT Framework of Thailand Explore More

    Blog

    On-Premises vs Cloud Services – Two Sides of the Same Coin

    With the advent of technology, industries are streamlining all their processes and ensuring highe...

    On-Premises vs Cloud Services – Two Sides of the Same Coin Explore More

    Blog

    20 Facts and Statistics About the Global Finance Sector

    The finance sector makes up around 20 to 25% of the global GDP. With the market capitalization re...

    20 Facts and Statistics About the Global Finance Sector 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

    Securing Online Marketplace Through Identity Verification System

    Since the Covid-19 outburst, technological advancements and emerging innovations have digitized t...

    Securing Online Marketplace Through Identity Verification System 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

    Evaluating the Potential of Digital ID Verification Systems in 2022

    Identity fraud and synthetic identities are skyrocketing and collectively account for a loss of ​...

    Evaluating the Potential of Digital ID Verification Systems in 2022 Explore More

    Blog

    Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties

    For multinational businesses, reliance on external third-party vendors is crucial. However, failu...

    Enhanced Due Diligence Checks | The Art of Mitigating Risks Associated with Third-Parties 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

    KYC and AML For Fintech | A Comprehensive Guide to Fraud Prevention

    Since governments worldwide are increasing the pressure to regulate, compliance has become a key ...

    KYC and AML For Fintech | A Comprehensive Guide to Fraud Prevention 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

    A Guide to Anti-Money Laundering (AML) Regulations in the UAE

    As the Middle East’s financial hub, the UAE offers several enticing free trade zones that a...

    A Guide to Anti-Money Laundering (AML) Regulations in the UAE 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

    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

    An inside look at the need for AML in the e-gaming industry

    Data analytics and trends show the penetration of the population into console-based online video ...

    An inside look at the need for AML in the e-gaming industry Explore More

    Blog

    How biometrics in visa process reduce travel difficulties

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

    How biometrics in visa process reduce travel difficulties Explore More

    Blog

    Top 5 Use Cases of Face Verification in the Digital Age

    As novel applications and products are released every day, the use cases of face verification tec...

    Top 5 Use Cases of Face Verification in the Digital Age 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

    5 reasons why passwords are no more safe – What’s next?

    Online platforms are using passwords to secure the privacy and data of their users – but ar...

    5 reasons why passwords are no more safe – What’s next? Explore More

    Blog

    KYC Verification – Ensuring Regulatory Compliance in Sports Betting Platforms

    With the growth in organised crime and its infiltration into the sports betting market, businesse...

    KYC Verification – Ensuring Regulatory Compliance in Sports Betting Platforms Explore More

    Blog

    The Path to CX Leadership – An Interview with Saroni Kundu

    From Code to Customer: How Saroni Kundu Found Her Passion in CX In our latest Beyond Borders podc...

    The Path to CX Leadership – An Interview with Saroni Kundu Explore More

    Blog

    Facial Recognition in UAE to Protect Private and Government Sector

    Continuous developments in the world of technology have led to many innovative solutions like fac...

    Facial Recognition in UAE to Protect Private and Government Sector Explore More

    Blog

    Business Verification: A new line of Defense against Fraudsters

    With the ever-increasing complexities of anti-money laundering (AML) and counter-terrorism financ...

    Business Verification: A new line of Defense against Fraudsters Explore More

    Blog

    AML Screening for Luxury Items Industry – The Role of Shufti in Ensuring Compliance

    Money laundering is a global issue, and with emerging technologies, criminals are also using more...

    AML Screening for Luxury Items Industry – The Role of Shufti in Ensuring Compliance Explore More

    Blog, Reg Tech

    Here’s How Compliance to KYC and AML Regulations May Help Crypto Rebound

    Cryptocurrency was the talk of the day in the months and even years leading up to the present wee...

    Here’s How Compliance to KYC and AML Regulations May Help Crypto Rebound Explore More

    Blog

    Online Privacy, Security & Inclusivity in a Digital World: Congress Hearing 2021

    On 16 July 2021, the US Financial Services Task Force on Artificial Intelligence held a virtual h...

    Online Privacy, Security & Inclusivity in a Digital World: Congress Hearing 2021 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

    AML and KYC Regulations in China – New Requirements to Secure Financial Industry

    China’s financial system is undergoing a pivotal transformation. The country is limiting sharehol...

    AML and KYC Regulations in China – New Requirements to Secure Financial Industry Explore More

    Blog

    August 2023 Recap: Major Violations and How AML Screening Can Help

    With technological advancement, scammers are revising their strategies to bypass verification sol...

    August 2023 Recap: Major Violations and How AML Screening Can Help Explore More

    Blog

    Anti-Money Laundering Challenges Faced by the Fintech Industry

    Since the implementation of the bank Secrecy Act (BSA) in 1970, the United States government has ...

    Anti-Money Laundering Challenges Faced by the Fintech Industry 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

    7 Things Businesses Should Know About Online Face Recognition Solutions

    One might be good at identifying faces. People find it a cinch to recognise a friend’s or f...

    7 Things Businesses Should Know About Online Face Recognition Solutions 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

    China’s New Data Security and Personal Information Protection Laws [2022 Update]

    For the purpose of identification, interdiction, and prevention, many governments, regulators, an...

    China’s New Data Security and Personal Information Protection Laws [2022 Update] Explore More

    Blog

    Know Your Customer – Addressing the Risks of Financial Crimes in Challenger Banks

    With emerging technologies, financial services are witnessing a digital revolution that is changi...

    Know Your Customer – Addressing the Risks of Financial Crimes in Challenger Banks Explore More

    Blog, Online Marketplace

    Ride Sharing Services and ease provided by KYC Services

    Ride Sharing services might be the hottest form of transportation especially in developed countri...

    Ride Sharing Services and ease provided by KYC Services Explore More

    Blog

    Impact of Beneficial Ownership Transparency on Real Estate Crimes

    The high price tags of real estate in the US open doors for corrupt politicians, kleptocrats, and...

    Impact of Beneficial Ownership Transparency on Real Estate Crimes Explore More

    Blog

    Combatting Fraud in the Automotive Industry

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

    Combatting Fraud in the Automotive Industry Explore More

    Blog

    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

    A Brief Overview of 2021 AML Trends

    Over the last decade, regulatory scrutiny on Anti-Money Laundering (AML) compliance has remained ...

    A Brief Overview of 2021 AML Trends 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

    Know Your Customer – Addressing the Risks of Financial Crimes in Challenger Banks

    With emerging technologies, financial services are witnessing a digital revolution that is changi...

    Know Your Customer – Addressing the Risks of Financial Crimes in Challenger Banks Explore More

    Blog

    Digital COVID Pass: Automated COVID Report Verification

    The worsening situation of the pandemic has forced authorities to impose restrictions on several ...

    Digital COVID Pass: Automated COVID Report Verification 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, Financial Crime / AML

    AML Screening in the light of Compliance Regimes Around the Globe

    AML compliance is inevitable for all types of businesses around the globe. The regulatory complia...

    AML Screening in the light of Compliance Regimes Around the Globe Explore More

    Blog

    5 Ways Banks Can Minimize Risks In Light of KYC/AML

    If you’re dealing with customers across borders, how can you safeguard your bank by ensuring that...

    5 Ways Banks Can Minimize Risks In Light of KYC/AML Explore More

    Blog

    AML Screening | Fighting the War Against Terrorist Financing & Money Laundering

    Money laundering and terrorist financing have become a global concern. In the US alone, approxima...

    AML Screening | Fighting the War Against Terrorist Financing & Money Laundering 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

    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

    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