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

    us

    2a03:2880:f800:16::

    Money Laundering & Cybercrime on DeFi Platforms – Ensuring KYC/AML Compliance

    n-img-prevailing-comp

    As a result of rapid digitization and the emergence of decentralized services, the financial markets are greatly evolving.Digital Ledger Technology (DLT) and Decentralized Finance (DeFi) are gaining popularity among stakeholders due to the unlimited opportunities and benefits they provide to users. This is the main tailwind allowing the  crypto industry to pick up pace, opening new doors for innovation and investments. DeFi platforms are constantly making headlines globally due to their convenient investment options, which have also attracted criminals to get involved in various financial scams.

    The global blockchain market was valued at $4.67 billion in 2021, and is expected to grow to $163 billion by 2029. By looking at these statistics, it becomes clear that DeFi platforms are going to continue to gain traction in the coming years, and all financial authorities across the globe will  need to regulate this growing industry. Know Your Customer (KYC) could be the most viable option for the DeFi sector, as it will help companies verify their users’ true identities while restricting bad actors during onboarding.

    Threats Faced by Decentralized Finance (DeFi) Platforms

    All DeFi platforms operate on the principles of decentralization, which means that there is no central authority like other financial organizations such as banks and insurance companies. This is the prime reason that the DeFi system is highly exposed to threats of monetary crimes, particularly money laundering and terrorist financing. Bad actors on-board DeFi platforms, using fake and stolen identities, successfully investing their illegal wealth without the need to provide any information or document on source of funds. It is also very gruesome for law enforcement authorities to track down DeFi criminals, as the blockchain does not have a central monitoring authority.

    In the first half of 2022 alone, decentralized finance users grew by 300,000, and the number is increasing every passing day. Between January and March 2022, criminals stole $1.3 billion in cryptocurrencies, which is a 72% increase as compared to the previous year. In the last decade,the use of decentralized finance platforms has picked up pace, and the majority of jurisdictions lack a comprehensive regulatory framework to monitor this budding sector. This is the primary reason that fraudulent activities are increasing and criminals are getting away with crime without being detected. In such a situation, it is quite a reasonable approach to implement KYC measures, which will help to authenticate user identities and keep detailed transaction records.

    b-Infographic-img

    The Role of Law Enforcement Agencies in Countering Cyber Criminals

    In the wake of rising crime rates  on Defi platforms, all major jurisdictions are enforcing stringent measures to counter criminals. In the recent past, several cases have surfaced where bad actors successfully stole billions of dollars through cryptocurrency and other decentralized finance platforms. Law enforcement agencies are working tirelessly to arrest the scammers and bring them under the law.

    Here are the two specific examples of Decentralized Finance (DeFi) fraud.

    Criminal Gang Arrested for $3.6 Billion Money Laundering Using Bitcoin

    FBI has arrested a criminal gang that was trying to launder $3.6 billion using several cryptocurrency coins, especially Bitcoin. It has further been found in the investigation that scammers have been carrying out fraudulent activities since 2016, and during that time, they successfully sent $71 million to other countries. All the criminal gang members have been presented before the court, and judges have ordered the Police to fully trace all financial transactions related to the case.

    Police Seized record £180m of Cryptocurrency in London

    London Police recently conducted a raid and seized £180 million of cryptocurrency, while arresting two criminals. Police authorities have stated in a press conference that these particular scammers were involved in stealing cryptocurrency through various exchanges and further laundering this money to other countries. Law enforcement agencies have collected all the evidence related to the case and presented them before the court, where their penalty is yet to be decided.

    Global Regulations Monitoring the DeFi Platforms

    The global regulatory authorities, including the Financial Action Task Force (FATF), European Union (EU), and Interpol, have taken a firm stance against cyber criminals taking advantage of loopholes in decentralized finance. FATF has warned all its member-states to implement stringent compliance measures on all decentralized finance platforms, curbing money laundering and terrorist financing.

    Let’s have a look at some of the prominent laws enforced in various countries across the globe:

    United States

    The US government has expressed grave concerns about prevailing crime in cryptocurrency and other DeFi platforms, terming the industry highly vulnerable to financial crimes. In the first half of 2022, a draft of a ‘DeFi Protocols’ bill by US legislators was leaked, which has addresses the risks posed by cryptocurrency. It has been mandatory for all of the key stakeholders to implement Know Your Customer (KYC) measures to verify the true identities of all the users and keep a record of their activities.

    United Kingdom

    Although the UK government has not legislated any new laws to regulate DeFi platforms, it has amended the existing cybercrime law to counter financial crimes prevailing in the sector. Any fraudulent activity related to cryptocurrency has been termed as a criminal offense, which will be punishable by up to 10 years under the law.

    Australia

    The Australian government has taken a strict stance against cyber criminals, making it mandatory for platforms to obtain a license before starting their operations. Australian Taxation Office (ATO) is the primary authoritative body that overlooks all of the decentralized financial activities in the country. It has also instructed crypto exchanges to make a record of the identities of all their users and submit it to the authorities.

    Ensuring KYC Compliance and Securing DeFi Platforms

    There is no denying the fact that Decentralized Finance (DeFi) platforms are the digital future of the world, and it is quite essential for the authorities to regulate this important sector. Implementing the Customer Due Diligence (CDD) approach could be a viable solution to counter bad actors in the DeFi sector. It will not only help the authorities verify users’ true identities, but also keep a detailed record of all their financial activities.

    Moreover, Know Your Customer (KYC) screening measures should also become a part of the whole system to verify all users while onboarding through their documents in real time. An efficient KYC system biometrically authenticates a customer’s identity and compares them with the one on their identity documents. This way, only users with the right information are allowed to onboard, and criminals are largely eliminated from the system.

    Shufti’s KYC Solutions

    Shufti’s state-of-the-art KYC screening solutions are the ideal option for DeFi platforms to comply with global regulations. Powered by an AI algorithm that is getting smarter with time, Shufti’s KYC solution verifies users’ true identities in real time and compares unique features with those on their documents. It is efficient enough to generate results in seconds with a ~99% accuracy rate.

    Would you like to know more about KYC solutions for DeFi platforms?

    Talk to a KYC Expert

    Related Posts

    Blog

    Spreading Holiday Cheer with a Heartfelt Donation to Crisis UK

    As the holiday season approaches, we often reflect on how we can give back to our communities. Th...

    Spreading Holiday Cheer with a Heartfelt Donation to Crisis UK 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

    Identity Verification with Liveness Detection: The Key to Preventing Spoofing Attacks

    Spoofing attacks are not limited to just emails and fake websites. Hackers and cybercriminals hav...

    Identity Verification with Liveness Detection: The Key to Preventing Spoofing Attacks Explore More

    Blog

    KYC and AML: The Key to Secure BNPL Services in 2023

    Seems like Buy Now Pay Later (BNPL) services have taken the world by storm, with 360 million user...

    KYC and AML: The Key to Secure BNPL Services in 2023 Explore More

    Blog

    Identity Proofing – 7 Reasons Why Businesses Need it Now!

    Modern-day cyberspace has effortlessly diminished the boundary between the real-life and digital ...

    Identity Proofing – 7 Reasons Why Businesses Need it Now! 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

    The Top Customer Onboarding Tips for Businesses

    Today every business is competing to boost their retention rate and offer their audience a secure...

    The Top Customer Onboarding Tips for Businesses Explore More

    Blog

    AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4]

    This blog covers the last chapter of our four-part series on AUSTRAC’s money laundering and terro...

    AUSTRAC’s ML/TF Risk Assessment Report on Foreign Subsidiary Banks [Part 4] Explore More

    Blog

    Vendor due diligence – Why it’s important and how it’s done?

    In today’s ever-changing corporate landscape, businesses are always looking for ways to make thei...

    Vendor due diligence – Why it’s important and how it’s done? Explore More

    Blog

    Eradicating Financial Crimes in Online Gambling using NFC Verification

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

    Eradicating Financial Crimes in Online Gambling using NFC Verification Explore More

    Blog

    The Truth Around DeFi Compliance – Bridging the Transparency Gap

    Financial markets around the world have seen increased popularity with the advent of decentralise...

    The Truth Around DeFi Compliance – Bridging the Transparency Gap Explore More

    Blog

    Video KYC: A Complete Overview

    The digitisation of KYC was inevitable, but the COVID-19 pandemic accelerated what would have oth...

    Video KYC: A Complete Overview Explore More

    Blog

    Card-Not-Present (CNP) Fraud – How to Prevent False Chargebacks?

    The eCommerce industry continues to grow rapidly, so are fraudulent activities. According to Stat...

    Card-Not-Present (CNP) Fraud – How to Prevent False Chargebacks? Explore More

    Blog

    KYC and AML Compliance – Addressing the Challenge of Money Laundering in Online Trading Platforms

    An online trading platform is a program where shareholders and traders deal through financial int...

    KYC and AML Compliance – Addressing the Challenge of Money Laundering in Online Trading Platforms Explore More

    Blog

    How Age Verification Protects the E-commerce Industry From Potential Risks

    Online shopping has become the new normal since the COVID-19 pandemic struck. With digital produc...

    How Age Verification Protects the E-commerce Industry From Potential Risks Explore More

    Blog

    A Detailed Insight Into Australia’s Gaming and Gambling Regulations

    In recent years, the online gaming and gambling industry has experienced significant growth as te...

    A Detailed Insight Into Australia’s Gaming and Gambling Regulations Explore More

    Blog

    De-Risking and Anti-Money Laundering Screening – How Shufti Can Help FIs

    Every firm providing financial services must stay put with the existing compliance and follow new...

    De-Risking and Anti-Money Laundering Screening – How Shufti Can Help FIs Explore More

    Blog

    Age verification regulations demanding better compliance from businesses

    “Youth is the hope of our future.” Jose Rizal  It is no secret that the youth is a valuable asse...

    Age verification regulations demanding better compliance from businesses Explore More

    Blog

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

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

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

    Blog

    How Online ID Verification Supports Age-restricted Sellers?

    The online stores selling age-restricted products like gaming services, medicine or drugs are in ...

    How Online ID Verification Supports Age-restricted Sellers? 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

    Digital Age Verification replacing Age Gates for better compliance

    Age verification is one of the trending snd sensitive topics these days, especially in the busine...

    Digital Age Verification replacing Age Gates for better compliance 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

    China’s Data Protection and Privacy Laws | 2023 Update

    China has witnessed massive growth in the last few decades. However, the rise of the digital econ...

    China’s Data Protection and Privacy Laws | 2023 Update Explore More

    Blog, Identity & KYC

    How Brexit Impacts UK-based Identity Verification Companies?

    Brexit and its ramifications for the UK seem to be the only topic that anyone is interested in Br...

    How Brexit Impacts UK-based Identity Verification Companies? Explore More

    Blog

    The EU’s New AML Proposal, What’s in Store?

    To strengthen the EU’s Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) ...

    The EU’s New AML Proposal, What’s in Store? Explore More

    Blog

    Shufti’s Bug Bounty Programme: Strengthening Security Via Ethical Hacking

    With the avalanche of security vulnerabilities in the verification industry, Shufti is launch...

    Shufti’s Bug Bounty Programme: Strengthening Security Via Ethical Hacking Explore More

    Blog

    UK Watchdogs Hit Financial Institutions with Record AML Fines in 2021

    A dramatic increase in Anti-Money Laundering (AML) fines was seen in 2021 as financial watchdogs ...

    UK Watchdogs Hit Financial Institutions with Record AML Fines in 2021 Explore More

    Blog

    Secure the Fintech Future with RegTech

    Financial Technology (Fintech) refers to the use of technological advancements in the financial i...

    Secure the Fintech Future with RegTech Explore More

    Blog

    Video KYC in 2024 | A Step Towards Digital Evolution

    The striking surge in theft and fraud through digitisation is a growing concern for many business...

    Video KYC in 2024 | A Step Towards Digital Evolution Explore More

    Blog

    Address Verification: The Cornerstone of Elevating Customer Experience

    Today’s highly emerging technology is changing the way consumers shop online products. Given the ...

    Address Verification: The Cornerstone of Elevating Customer Experience Explore More

    Blog, Identity & KYC

    Identity Proofing – Prevention from Data Breaches

    World economic forum states that Cyberattack is mapped as one of the top threats to global stabil...

    Identity Proofing – Prevention from Data Breaches Explore More

    Blog

    5 AML Compliance Trends for 2023 – New Regulations and Technological Advancements

    From digital payments to new regulations on preventing fraud and FINRA’s guidelines on penalising...

    5 AML Compliance Trends for 2023 – New Regulations and Technological Advancements Explore More

    Blog

    Risk Assessment: Building Trust Among Travellers

    The travel and tourism industry is among the largest in the world. Many countries, such as the UA...

    Risk Assessment: Building Trust Among Travellers Explore More

    Blog

    Securing Cryptocurrency Sector and Fighting Financial Crimes With Shufti’s AML Solution

    A decade ago, digital currencies were an academic concept, largely unknown to the world’s general...

    Securing Cryptocurrency Sector and Fighting Financial Crimes With Shufti’s AML Solution Explore More

    Blog

    Identifying and Combating Trade-Based Money Laundering with Shufti AML Screening Services

    The crime involved in trading is as old as human history. Where there is trade there is money inv...

    Identifying and Combating Trade-Based Money Laundering with Shufti AML Screening Services Explore More

    Blog

    The Growing Risk of Wash Trading and Money Laundering – How Shufti Can Help

    The Non-Fungible Token (NFTs) market exploded last year and became one of the most popular buzzwo...

    The Growing Risk of Wash Trading and Money Laundering – How Shufti Can Help Explore More

    Blog

    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, Identity & KYC

    Why Does ID Verification Fail in 2025? – Causes & Fixes | Shufti

    Introduction Identity-verification (IDV) is the gatekeeper of the digital economy, but it still s...

    Why Does ID Verification Fail in 2025? – Causes & Fixes | Shufti Explore More

    Blog

    A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview]

    Over the past few years, the financial industry has witnessed significant technological changes, ...

    A Statistical Analysis of Prevalent Crimes in the Global Financial Industry – [2022 Overview] Explore More

    Blog

    ICOs blocking investors from USA and China – Why and How?

    Initial Coin Offerings, more commonly known as ICOs, are all the rage in modern day financial wor...

    ICOs blocking investors from USA and China – Why and How? 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

    Biometrics technology a key to key-free world

    In 2016, the biometric market in the United States reached $3.52 billion U.S Dollars and is expec...

    Biometrics technology a key to key-free world Explore More

    Blog

    Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs]

    Since the last decade, governments and financial institutions have been trying to limit corruptio...

    Harnessing the power of AML Screenings to Uncover Politically Exposed Persons [PEPs] Explore More

    Blog, Financial Crime / AML, Online Marketplace

    Billion Dollar AML Compliance Plan for the Financial Sector

    The financial services sector has long been blamed for the spread of financial crimes like money ...

    Billion Dollar AML Compliance Plan for the Financial Sector Explore More

    Blog

    AML/CFT Regulations of Hong Kong: Paper Over Cracks?

    On September 15, 2021, Hong Kong’s Securities and Futures Commission issued consultation conclusi...

    AML/CFT Regulations of Hong Kong: Paper Over Cracks? 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

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

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

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

    Blog

    Assessing the Importance of Digital Identity Verification in On-Demand Services

    Dealing with the after-effects of the coronavirus pandemic, digital business platforms and e-comm...

    Assessing the Importance of Digital Identity Verification in On-Demand Services Explore More

    Blog

    Major Fines in the Gaming and Gambling Industry and the Role of e-IDV

    The outbreak of Covid-19 has changed how we do business. Many firms that used to operate physical...

    Major Fines in the Gaming and Gambling Industry and the Role of e-IDV Explore More

    Blog

    How Artificial Intelligence is taking ID verification to the next level?

    Identity theft is deemed as a growing problem. Particularly with the increase in online shopping,...

    How Artificial Intelligence is taking ID verification to the next level? 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

    KYC Checks in Crypto | A Key to Secure Digital Assets

    In the last thirteen years, the crypto industry has redefined the financial sector. At the same t...

    KYC Checks in Crypto | A Key to Secure Digital Assets 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

    Identity Verification Isn’t Just for Compliance Anymore

    Identity verification solutions are well-known in regulatory compliance environments, particularl...

    Identity Verification Isn’t Just for Compliance Anymore Explore More

    Blog

    Major Fines in the Gaming and Gambling Industry and the Role of e-IDV

    The outbreak of Covid-19 has changed how we do business. Many firms that used to operate physical...

    Major Fines in the Gaming and Gambling Industry and the Role of e-IDV Explore More

    Blog

    Understanding Risk assessment in the Gambling Sector

    The e-gambling industry has always been lucrative for gamers. However, it has also been constantl...

    Understanding Risk assessment in the Gambling Sector Explore More

    Blog

    Top 5 Trends to Revamp the Online Gambling Industry in 2022

    In recent times, the online gambling sector has demonstrated continuous growth along with technol...

    Top 5 Trends to Revamp the Online Gambling Industry in 2022 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, Reg Tech

    How does CDD effectively help with AML Compliance?

    CDD or customer due diligence in the banking sector and other financial firms is an important asp...

    How does CDD effectively help with AML Compliance? Explore More

    Blog

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

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

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

    Blog

    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, Online Marketplace

    Fraud Prevention in Real Estate Industry

    Fraud prevention tools that include3rd-party KYC service providers are essential in the real esta...

    Fraud Prevention in Real Estate Industry 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

    Securing Digital Landscape with Electronic Identity Verification Services in 2023

    With a surge in identity document forgery, the likelihood of onboarding a criminal has grown subs...

    Securing Digital Landscape with Electronic Identity Verification Services in 2023 Explore More

    Blog

    ID verification prevents 8 Security Issues of businesses

      The biggest concern for businesses, in terms of safety, nowadays is online or cybersecurit...

    ID verification prevents 8 Security Issues of businesses Explore More

    Blog

    Wholesale or Retail CBDCs? Settling the Endless Debate

    The world is now moving towards digitisation at a faster pace than ever. The payment systems have...

    Wholesale or Retail CBDCs? Settling the Endless Debate 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

    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

    Combating Identity Theft in On-Demand Services with Shufti’s KYC Solution

    Transition is the only thing that is inevitable in the universe. Every passing day is changing ou...

    Combating Identity Theft in On-Demand Services with Shufti’s KYC Solution Explore More

    Blog

    The Power of Identity Verification Solutions in Ensuring Risk-Free Recruitment Operations

    Over the recent years, the employment industry has undergone significant changes, from mass offbo...

    The Power of  Identity Verification Solutions in Ensuring Risk-Free Recruitment Operations Explore More

    Blog

    Identity Fraud in Coworking Spaces – How Shufti’s Facial Biometric Authentication Helps

    With more and more companies embracing remote work, the trend of coworking spaces is picking pace...

    Identity Fraud in Coworking Spaces – How Shufti’s Facial Biometric Authentication Helps 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