Restricting Criminals from Exploiting Investment Industry with Shufti Pro AML Screening Solution

  • Richard Marley
  • August 29, 2022
  • 8 minutes read
  • 225

Investing the accumulated capital of investors in financial securities is the primary task of investment companies. Emerging technology and a huge influx of money in this sector have led criminals to use advanced methods to carry out money laundering and other financial crimes. Investment firms in the whole world have become a potential target for scammers and crime statistics are skyrocketing every year. Not verifying the identities and source of income of investors while onboarding is the major reason behind fraud which must be addressed to curb investment scams.

In the UK alone, investment fraud is rising by 42% every year driven by a 59% increase in Ponzi schemes and 57% in bond sale scams. Although all countries and organizations across the globe have implemented stringent measures to monitor investment firms, scams are still prevailing. All these companies are in dire need of viable identity verification and anti-money laundering solutions through which the true identities of investors can be verified and get them screened against AML sanction lists.

Money Laundering Risks for Investment Companies

Since 9/11, money laundering has become a global concern contributing to terror financing and other heinous crimes. Due to strict security measures adopted by banks, criminals have found their way through investment firms, increasing the overall crime rate. The primary reason for these rising numbers is the absence of identity verification and anti-money laundering checks which are not only resulting in financial losses but also discouraging sophisticated investors. Undetected crimes in the investment sector are encouraging bad actors to operate without any risks further intensifying the crime ratio.

With the introduction of cryptocurrency in digital economy, investors have found another platform to invest and earn money but it is also prone to financial scams as well. In 2021 alone, people have lost $1 billion to crypto fraud making it a highly vulnerable platform for investment. With transforming technology, it is imperative for companies to implement anti-money laundering solutions to avoid the risks posed by financial criminals.

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