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

    18.97.14.89

    Record-Breaking Fines on Banks for KYC/AML Non-Compliance

    Bank Files

    Know Your Customer (KYC) and Anti-Money Laundering (AML) compliance have been structured to make financial institutions secure. The rising number of illegal activities in the finance sector is raising concerns for regulatory authorities. This year, the KYC/AML regulations have become more rigid and different countries have also amended their state laws for customer due diligence. Why are all the regulatory authorities imposing more stringent laws in 2021? 

    In 2020, the majority of banks were fined for not complying with KYC/AML regulations. The law violations increased significantly and record-breaking penalties were imposed on banks across the globe. This led law enforcement agencies to make certain changes to the regulations and customer due diligence protocols. The record-breaking penalties in the finance sector have changed the game for businesses. 

    Let’s take a deep dive into the largest penalties of 2020 and how can KYC/AML regulations help the finance sector to avoid them in 2021.   

    Recommended: The Future of Customer Onboarding Post-COVID-19 Pandemic 

    A Summary of 2020 Bank Fines 

    2020 brought several inconveniences to life and the most distressing challenge was fighting fraudsters. Identity theft and money laundering were the most reported crimes last year. Unfortunately, the inability of financial institutions to verify identities of customers increased money laundering and other illegal activities. Here is a summary of fines imposed in 2020:

    Goldman Sachs Tops the List 

    The US was ranked number 1 with the highest number of bank fines enforced in 2020. 12 cases of AML non-compliance were reported and the sum of all these fines was €9.39 billion. The fine on Goldman Sachs alone was €3.30 billion. The settlement was made by the bank with Malaysia against the Wall Street Bank for its role in assisting to raise millions for a sovereign wealth fund. 

    Commerzbank Fined £37.8 Million by FCA

    The Financial Conduct Authority (FCA) imposed a £37.8 Million fine on the Commerzbank, London. The fine was a result of the bank’s violation of AML controls.  According to reports of FCA, the violations will result in huge risks and stability issues of the UK’s financial system. The audit from FCA shared the following reasons on the basis of which the bank was penalised:

    • Periodic due diligence failures
    • Insufficient money laundering control procedures
    • Inadequate risk management systems
    Bank Files

    Westpac Paid $1.3 Billion for AML Breaches

    Last year, Westpac bank in Australia was number 5 on the list of banks with the highest penalties. The court penalised Westpac with a fine of $1.3 billion. AML laws were breached at different intervals. Westpac not only violated AML/CFT laws but also failed to employ transaction monitoring and did not submit IFTI reports to AUSTRAC. Furthermore, the bank did not perform enhanced due diligence for high-risk transactions as suggested by FATF. 

    SEB Bank Fined $107 Million for Poor AML Measures

    Next in the list of KYC/AML non-compliance is Lloyds Bank that was fined $107 million by the City watchdog for unfair treatment of mortgage customers. According to the executive director of enforcement and market oversight of Financial Conduct Authority (FCA), 

    “Banks are required to treat customers fairly, even when those customers are in financial difficulties or are having trouble meeting their obligations. By not sufficiently understanding their customers’ circumstances the banks risked treating unfairly more than a quarter of a million customers in mortgage arrears.”

    Reasons Behind Hefty Penalties on Banks 

    The major reason behind all these hefty penalties is the banks’ inability to follow the regulations imposed by higher authorities. However, there are several other reasons resulting in increasing fines and growing rigidity of regulations. They include,

    • Consistent failures to comply with the Anti-Money Laundering laws 
    • Lack of proper customer due diligence 
    • No transaction monitoring measures taken 
    • Overseen cases of compliance monitoring 

    Did you know that the highest number of cases of AML law violations have been reported in 2020? Here’s an overview of the number of cases reported last year:

    • 82 cases of transaction monitoring 
    • 109 cases of poor AML compliance 
    • 115 cases of lack of customer due diligence 

    If banks continue to lack robust verification and AML systems, the numbers will increase this year as well. 

    Suggested: A Comprehensive Guide to AML Compliance [2020] 

    What Can You Do to Prevent Fines in 2021?

    Other enterprises in the finance sector must comply with the KYC/AML regulations at all costs. Otherwise, heavy penalties will be their fate in 2021 as well. How can banks and other financial enterprises prevent fines this year? Well, here’s what you should do:

    • Take a look at the amended laws from regulatory authorities 
    • Audit your current identity verification protocols 
    • Ensure robust KYC/AML compliance measures within the company 
    • Never onboard any customer without verification
    • Always perform enhanced due diligence (EDD) checks for high-risk customers 
    • Ongoing transaction monitoring must be employed to prevent money laundering 

    Read more: Shufti’s Ongoing AML Solution to Prevent Transaction Laundering 

    How Can Shufti Help You?

    Penalties on financial institutions are increasing every year and 2020 broke records. The major reasons for hefty penalties included poor customer screening and inefficient AML compliance procedures. Furthermore, damaged brand reputation is another setback for companies. In order to protect your organisation from criminal activities and heavy penalties, it is better to employ KYC/AML verification.

    Shufti is a one-stop solution for all your needs. With AI-powered identity verification and AML screening, you can verify all the customers during the onboarding process. Moreover, the ongoing AML screening allows you to screen the backgrounds of high-risk customers as per your requirements. With 98.67% accuracy of our solutions, you can get in touch with the right customers. 

    Talk to our experts and add robust identity verification protocols to protect your company. 

    Related Posts

    Blog

    Top 6 trends in Anti-Money Laundering for 2020

    To enhance the scope of AML compliance, new regulations were brought into force throughout last y...

    Top 6 trends in Anti-Money Laundering for 2020 Explore More

    Blog

    Expanding and Securing Financial Services with Shufti’s Video KYC Solution

    In recent years, Know Your Customer (KYC) has gone through significant digital transformations. B...

    Expanding and Securing Financial Services with Shufti’s Video KYC Solution Explore More

    Blog

    Mobile Payments – Way of the Future or a Fad of the Digital Age?

    Are we moving towards a world where retailers may one day say “We don’t take cash”? As mobile pay...

    Mobile Payments –  Way of the Future or a Fad of the Digital Age? Explore More

    Blog

    A New Dawn for Global Coverage: Built to Work Everywhere

    A New Dawn for Global Coverage: Built to Work Everywhere Explore More

    Blog

    Restricting Criminals from Exploiting Investment Industry with Shufti AML Screening Solution

    Investing the accumulated capital of investors in financial securities is the primary task of inv...

    Restricting Criminals from Exploiting Investment Industry with Shufti AML Screening Solution Explore More

    Blog, Identity & KYC

    Age Verification – Ultimate Online Protection for Minors

    The rapid increase in the use of the internet is raising some major concerns for parents regardin...

    Age Verification – Ultimate Online Protection for Minors Explore More

    Blog

    Online Dating Activities, Surging Crimes and Shufti’s IDV Solution

    Matchmaking is considered one of the oldest industries in existence, online dating is now having ...

    Online Dating Activities, Surging Crimes and Shufti’s IDV Solution Explore More

    Blog

    Financial Crimes and Romanian AML/KYC Landscape – How Shufti’s AML Screening Can Help

    Since the coronavirus outbreak, people worldwide have experienced things that no one could have a...

    Financial Crimes and Romanian AML/KYC Landscape – How Shufti’s AML Screening Can Help 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

    Top 5 Challenges in Online Identity Verification

    The online ecosystem of identity management is more dynamic than ever before. It’s a flexible and...

    Top 5 Challenges in Online Identity Verification Explore More

    Blog

    AML Screening – Identifying Financial Criminals in the Art & Antiquities Sector

    There is no doubt in the fact that art and antiquities are one of the sectors responsible for bil...

    AML Screening – Identifying Financial Criminals in the Art & Antiquities Sector 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

    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

    Online Identity Verification – How to Secure Online Gaming & Gambling Platforms

    Online gambling is the way to go for betting enthusiasts nowadays and brings both convenience and...

    Online Identity Verification – How to Secure Online Gaming & Gambling Platforms Explore More

    Blog

    The Complete Guide | Identifying Fake Documents

    As digital transformation accelerates, many document application processes have become faster and...

    The Complete Guide | Identifying Fake Documents 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

    AML compliance checklist for efficient AML screening in 2020

    2019 brought a plethora of AML regulations for businesses and non-compliance is no more an option...

    AML compliance checklist for efficient AML screening in 2020 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

    Identity Fraud on Social Media Platforms – How Shufti Keeps Fraudsters at Bay

    With almost 70% of the world’s population interacting through social media platforms, businesses ...

    Identity Fraud on Social Media Platforms – How Shufti Keeps Fraudsters at Bay Explore More

    Blog, Online Marketplace

    Secure Online Gambling through Identity and Age Verification

    Gambling is a very profitable business for big players and owners alike. According to research, t...

    Secure Online Gambling through Identity and Age Verification Explore More

    Blog, Financial Crime / AML, Fraud Prevention, Identity & KYC

    Data Breaches – Types, Sources, and Preventive Measures

    A large number of well-renowned companies are under the threat of high-scale data breaches. After...

    Data Breaches – Types, Sources, and Preventive Measures Explore More

    Blog

    A Brief Insight Into Anti-Money Laundering (AML) Regulations in Colombia

    Money laundering has become a global issue, and almost all countries are facing this threat in va...

    A Brief Insight Into Anti-Money Laundering (AML) Regulations in Colombia 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

    Anti Money Laundering, Blog, Identity & KYC, Reg Tech

    RegTech – FATF Guidance for Digital Identity Verification

    Regulatory authorities have recognized the benefits of technology and its use for seamless regula...

    RegTech – FATF Guidance for Digital Identity 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

    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, Identity & KYC

    ICOs and KYC Compliance

    With the surge in digitalisation of payments and crowdfunding; the need to set proper standards f...

    ICOs and KYC Compliance Explore More

    Blog

    The Top Use Cases of Optical Character Recognition (OCR) Technology

    Optical Character Recognition (OCR) technology has transformed how businesses collect, process, a...

    The Top Use Cases of Optical Character Recognition (OCR) Technology 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

    Third-party Due Diligence – Red Flags, Regulations and 5 Ways to Enhance It

    The majority of businesses depend upon a third-party in one way or the other. Contractors, suppli...

    Third-party Due Diligence – Red Flags, Regulations and 5 Ways to Enhance It Explore More

    Blog

    Open Banking Trends & the Vitality of Identity Verification

    With rapid digitisation, open banking is becoming the new normal in the banking sector. Open bank...

    Open Banking Trends & the Vitality of Identity Verification 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

    Customer Risk Assessment: Strengthening Security in the Digital Age

    Business partners, vendors, and third parties play essential roles in daily operations, contribut...

    Customer Risk Assessment: Strengthening Security in the Digital Age 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, Online Marketplace

    What do NGOs have to gain from Identity Verification Services?

    Identity Verification services are quickly becoming the cornerstone of NGO-related activities acr...

    What do NGOs have to gain from Identity Verification Services? Explore More

    Blog

    The Changing Landscape of KYC/AML Regulations in 2021

    Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations have been evolving over time...

    The Changing Landscape of KYC/AML Regulations in 2021 Explore More

    Blog

    Evolving Regulations Shaping Digital Crypto Ecosystem – How Shufti Can Help

    Since the start of civilization, humans have used money in several different ways, and throughout...

    Evolving Regulations Shaping Digital Crypto Ecosystem – How Shufti Can Help Explore More

    Blog

    E-Signature | Digitise and Verify Agreements in Compliance

    The use of electronic signature, or e-signature, has transformed business dealings. The days of s...

    E-Signature | Digitise and Verify Agreements in Compliance 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

    KYC in banking: How American banks can fight identity thieves?

    In the present globalized, fast-evolving sphere, revolutionizing KYC (Know Your Customer) is cruc...

    KYC in banking: How American banks can fight identity thieves? Explore More

    Blog

    Six Ways to Protect Your Business from Christmas Scams

    Christmas is around the corner and all of you must be very excited to decorate christmas trees, e...

    Six Ways to Protect Your Business from Christmas Scams Explore More

    Blog, Online Marketplace

    Benefits of KYC services for Money Services Operators

    Money service operators are at the forefront of international financial system as they help with ...

    Benefits of KYC services for Money Services Operators Explore More

    Blog, Identity & KYC

    Geolocation Technology and its benefits for KYC Verification

    KYC verification has come a long way from simply authenticating the official identity documents o...

    Geolocation Technology and its benefits for KYC Verification Explore More

    Blog

    New Money Laundering Patterns to Look Out for in 2022 – Do Social Media Platforms Need AML Screening?

    With digitization, the use of the internet and easy access to smart gadgets has increased the num...

    New Money Laundering Patterns to Look Out for in 2022 – Do Social Media Platforms Need AML Screening? Explore More

    Blog

    AML Compliance in the UK’s Financial Sector – What Shufti Offers

    The UK is known in the global financial paradigm for being both a financial hub and the dirty mon...

    AML Compliance in the UK’s Financial Sector – What Shufti Offers Explore More

    Blog

    E-KYC – The Next Step in the Evolution of KYC Verification

    As the world shifts to digital applications, financial operations are being automated for added c...

    E-KYC – The Next Step in the Evolution of KYC Verification Explore More

    Blog

    Prevailing Identity Fraud in Telecom Sector – How Shufti Can Reduce the Risks

    The telecommunication industry holds significance for the information sector as it is primary inf...

    Prevailing Identity Fraud in Telecom Sector – How Shufti Can Reduce the Risks Explore More

    Blog

    Indonesia’s First-ever Comprehensive Law on Data Privacy – the PDP Bill

    Being the largest economy in Southeast Asia, Indonesia is experiencing enormous growth in the dig...

    Indonesia’s First-ever Comprehensive Law on Data Privacy – the PDP Bill 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

    Top 5 Ways to Improve Transaction Monitoring in Fintech

    Fintech is a fast-growing sector that combines finance and technology to assist businesses and cu...

    Top 5 Ways to Improve Transaction Monitoring in Fintech Explore More

    Blog

    Employee Verification – First Line of Defence Against Corporate Fraud

    One day you wake up to the fact that the employee you’ve been trusting for years has been embezzl...

    Employee Verification – First Line of Defence Against Corporate Fraud Explore More

    Blog, Financial Crime / AML, Fraud Prevention, Identity & KYC

    The FinTech Industry: A Snapshot

    What is FinTech? Financial technology, known more commonly as FinTech, is a term that refers to t...

    The FinTech Industry: A Snapshot 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, 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

    Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification

    In today’s digital age, businesses must have a robust identity verification system in place...

    Elevated Business Security: A Comparative Analysis of Identity Proofing and Identity Verification Explore More

    Blog

    Know Your Investor | Understanding Which Investors to Onboard

    Investor onboarding is regarded as one of the most critical stages of the business’s lifecy...

    Know Your Investor | Understanding Which Investors to Onboard Explore More

    Blog

    Identity Verification – Combating Fraud in the Telecommunication Sector

    Developing technology, rapid growth in digitization, and increased use of digital transactions ha...

    Identity Verification – Combating Fraud in the Telecommunication Sector Explore More

    Blog

    Shufti to Revamp Customer Experience with Enhanced Video KYC UX

    Would you ever want to use a product that is hard to understand? A McKinsey Report revealed that ...

    Shufti to Revamp Customer Experience with Enhanced Video KYC UX Explore More

    Blog

    e-IDV: The Key to Fraud Prevention in FinTech

    After years of enormous growth, investment in the fintech market declined in 2022. Susceptibility...

    e-IDV: The Key to Fraud Prevention in FinTech Explore More

    Blog

    Document Verification Services – The Secret Sauce to Keep Fraudsters Away

    Forging someone’s documents is something bad enough but selling them on the dark web is just rubb...

    Document Verification Services – The Secret Sauce  to Keep Fraudsters Away Explore More

    Blog

    Prevailing Crimes in Identity Verification – How Shufti’s Forensic Document Verification Can Help

    Identity fraud has become quite prevalent in digital businesses which is not only affecting opera...

    Prevailing Crimes in Identity Verification – How Shufti’s Forensic Document Verification Can Help 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

    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

    China’s AML Framework and Regulatory Highlights of 2022

    China has been fighting against money laundering and terrorism financing for a number of years. A...

    China’s AML Framework and Regulatory Highlights of 2022 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

    What Counts as Proof of Income? A Guide for Businesses That Need to Verify Financial Status

    Verifying a person’s income isn’t just about numbers, it’s about trust. Whether you’re approving ...

    What Counts as Proof of Income? A Guide for Businesses That Need to Verify Financial Status Explore More

    Blog, Online Marketplace

    Know Your Customer Verification for Charity Organisations

    They say no good deed goes unpunished, if we were to take a look at it literally the frauds that ...

    Know Your Customer Verification for Charity Organisations Explore More

    Blog

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

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

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

    Blog

    Biometrics identity verification system – a masterstroke in verification market

    The biometrics identity verification system determines the resemblance of an individual by compar...

    Biometrics identity verification system – a masterstroke in verification market 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

    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

    Blog

    Cross Border Digital Payments – Regulatory Regime and the Global Context

    The world is moving towards smarter payments with technology trends picking up the pace in 2021. ...

    Cross Border Digital Payments – Regulatory Regime and the Global Context 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