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

    Singapore’s Digital Payment Token and AML Regulations [2022 Updates]

    blog-singa

    Financial crimes are an ever-increasing threat to the global economic climate. As a financial hub, Singapore is also getting prone to suspicious activities. There have been recent financial crime cases, including the shutdown along with a $30 million fine against BSI Bank and the Singapore branch of Falcon Private Bank. Moreover, according to the highlights of recent data published by the Monetary Authority of Singapore (MAS) reports that between 1 July 2017 and 31 December 2018, one criminal conviction, $16.8 million in financial sanctions, and $698,000 civil penalties were imposed. This was in addition to the 19 prohibition orders, 444 supervisory reminders, 223 warnings, and 37 reprimands that were issued.

    However, with the increase in the volume, complexity, and growth of cross-border financial transactions, the Singaporean financial watchdogs have been under stress, who aim to overcome financial crimes from getting widespread. Therefore, keeping in mind the consequences of crimes, the Singapore government has come up with new digital payment token regulations along with standards to enhance the country’s AML control systems.

    Singapore’s Financial Market and Digital Payment Tokens [Brief Overview]

    While there are heaps of digital tokens available in the financial market, from a Singapore legal perspective, it is crucial to look out of the box, considering the structure and characteristics of virtual tokens, as regulatory requirements vary depending on the struct and characteristics that fall under the category of legal payment token. The Singaporean government has legalized four different types of digital tokens that are circulating in the country’s financial market, namely security, payment, asset-backed, and utility tokens. However, these terms are not specifically defined as legal, yet they are only used for ease of discussion.

    The term payment tokens refer to digital tokens that constitute either Digital Payment Tokens (DPTs) or e-money under the Payment Services Act (PSA), which came into effect on 28 January 2020. The PSA aims to streamline the payment gateways and services under unified legislation by combining the Money-Changing and Remittance Businesses Act along with Payment Systems Act. In addition to this, it also enhances the scope of regulated activities to take into account developments in payment services.

    Under the PSA, all the payment activities that are regulated are required to get a license including account issuance services, cross-border and domestic financial transfer services, DT services, e-money issuance, and acquisition services.

    A digital payment token, defined under Section 2 of the PSA, is a digital representation of value that;

    • Is expressed as a unit
    • Is not denominated in any currency and is not pegged by its issuer to any currency
    • Is intended to be, a medium of exchange accepted by the public, or a section of the public, as payment for goods or services or for the discharge of debt
    • Can be transferred, stored, or traded electronically
    • Satisfies such other characteristics as MAS may prescribe
    news-digital

    Monetary Authority of Singapore (MAS) Guidelines on Digital Payment Token

    In Singapore, virtual assets and currencies are generally regulated as digital payment tokens. As per PSA, there is no prohibition on the DPTs trading by the public. However, any entity that is running a business providing DPTs trading services is obliged to get an operational license. DPT service is also considered any means of service dealing in DPTs or facilitating the exchanges.

    In addition to this, the new guidelines also apply to DPTs service providers that have been granted legal licenses to provide services under the PSA and other financial firms including banks that are operating in Singapore. Furthermore, these guidelines also restrict the business to promote DPT services in public areas in Singapore or through digital media that can be directed at the general public in the country. Other restriction includes;

    1. Placing any kind of advertisements or promotional content in public areas such as newspapers, third-party websites, social media sites, transport venues, or public events
    2. No engagement of social media influencers or third party entities to promote DPT services of businesses
    3. No provision of in-person access to DPT services in public areas through automated teller machines
    4. Mandating DPT service providers to promote services only on their own business websites, mobile applications, or social media accounts
    5. Promoting payment token derivatives as a convenient, unregulated alternative to DPTs trading or misleading the public that these are less risky is strictly prohibited

    Licensing Requirements

    According to the payment service act, any business that intends to provide digital payment token services in Singapore is required to obtain licenses. However, there are three types of licenses, that is developed according to the business type

    1. Money-changing Licenses: Companies that solely provide money-changing services are required to get this license. However, this is not applicable for DPT services
    2. Standard Payment Institution Licenses: Businesses that provide any of the seven specific types of payment services including DPT is need to apply for standard payment institution licenses as long as they don’t exceed the threshold value
    3. Major Payment Licenses:  This license allows the businesses that intend to exceed the thresholds for standard payment institutions to prove any of the seven types of financial services including DPT services

    In addition to this, in case any exception is applied, all the businesses, that offers or issues digital payment tokens can further apply for other three types of licenses;

    1. Capital Markets Services Licenses: Entity that operates the primary platform in Singapore in relation to digital tokens which constitute any type of financial market and carrying on business in one or more regulated activities under the Securities and Futures Act  can apply for this license
    2. Financial adviser’s licenses: A person who intends to provide financial advice in Singapore associated with digital token investment can also apply
    3. Approved Exchange (AE) Licenses: A person who has established or runs a DPT trading platform in Singapore can apply for this license

    Singapore’s AML/CFT Laws With Respect to DPT Services

    The Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT)  regime in Singapore largely follows (FATF) Financial Action Task Force guidelines. Thus, the country is an active member of FATF and a founding member of Asia Group on Money Laundering. In addition to this, MAS  also requires financial firms to have AML/CFT regulations, including identifying the real identities of customers including the beneficial owners, conducting the account reviews, monitoring the customers’ transactions, and reporting suspicious transactions to the financial watchdogs. 

    However, on 5 December 2019, the Monetary Authority of Singapore (MAS) published an AML/CFT notice in relation to DPT services. Under this notice, the DPT service providers are obliged to put in place rigid controls to determine and eliminate the flow of black money through Singapore’s financial system. As listed in Section I.ii, DPT services including the dealing (buying and selling) in digital tokens or operating DPT exchanges, one needs to comply with the AML/CFT regulations. Therefore, under the anti-money laundering and counter-terrorist financing regulations every DPT service provider is subject to include risk assessment, customer due diligence, enhanced due diligence, record keeping, suspicious transaction monitoring, reporting, compliance, and training, in order to make a rigid AML/CFT control.

    How Shufti Can Help

    Shufti’s state-of-the-art anti-money laundering screening services are an optimum solution for the digital token service providers that can allow them to stay put with the AML/CFT regulations. AI-powered background screening services can screen customers against 1700+ financial watchlists in less than a second with 98.67% accuracy.

    Want to know more about AML screening services for financial firms?

    Related Posts

    Blog

    Travel Industry – Trends, Scams, and a Solution to Combat Fraud

    The modern world is filled with surprises for everyone nowadays. Be it individuals or enterprises...

    Travel Industry – Trends, Scams, and a Solution to Combat Fraud Explore More

    Blog

    Cyber Monday Scams on the Rise Due to COVID-19

    Thanksgiving – a day that reminds us of all the bounties of Mother Nature that we should be...

    Cyber Monday Scams on the Rise Due to COVID-19 Explore More

    Blog

    AML Solutions: Eliminating the Risks of Money Laundering

    Money laundering is a serious crime that can have serious and long-term consequences for your bus...

    AML Solutions: Eliminating the Risks of Money Laundering Explore More

    Blog

    Kaseya Ransomware Attack – How to Protect Your Organization from Cyber Risks

    Did you know that by 2021, a ransomware attack is projected to occur every 11 seconds, costing co...

    Kaseya Ransomware Attack – How to Protect Your Organization from Cyber Risks Explore More

    Blog

    Two-Factor Authentication – A Firewall Against Social Engineering Attacks

    Businesses and financial institutions around the globe often report concerns of financial crimes ...

    Two-Factor Authentication – A Firewall Against Social Engineering Attacks Explore More

    Blog

    OCR technology for businesses – Its applications and benefits

    Optical Character Recognition (OCR) technology provides a business solution that automates data e...

    OCR technology for businesses – Its applications and benefits Explore More

    Blog, Online Marketplace

    What is Open Banking & Why Does it Matter in 2019?

    Open banking is surely one of those trends that have the potential to change the banking and fina...

    What is Open Banking & Why Does it Matter in 2019? 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, Reg Tech

    EU’s 4th AML Directive Aims to make the Payment Ecosystem Crime Free

    On June 26, 2018, the European Union landed the fourth AML directive that is targeted at combatin...

    EU’s 4th AML Directive Aims to make the Payment Ecosystem Crime Free Explore More

    Blog

    Enhance Time Efficiency with Shufti’s KYC Solution

    The Past Quick and secure e-KYC verification might not have been of importance in the days prior ...

    Enhance Time Efficiency with Shufti’s KYC Solution Explore More

    Blog, Financial Crime / AML

    AML Rules for Virtual Currency and Legal Sector – FATF 2019

    Financial Action Task Force (FATF) is an inter-governmental regulatory authority. It was founded ...

    AML Rules for Virtual Currency and Legal Sector  – FATF 2019 Explore More

    Blog, Identity & KYC

    Enhanced Due Diligence: Ensuring KYC and Regulatory Scrutiny

    Enhanced Due Diligence: The adoption of innovative solutions in businesses today, should not have...

    Enhanced Due Diligence: Ensuring KYC and Regulatory Scrutiny Explore More

    Blog

    Digital Document verification – an efficacious method of ID card scanning

    Businesses, banks, airports, social media platforms, e-commerce stores all need to be sure of the...

    Digital Document verification – an efficacious method of ID card scanning Explore More

    Blog

    Securing Banks and Curbing Financial Crimes with Shufti AML/KYC Solution

    Banks and other financial institutions constantly face the challenges of tackling financial crime...

    Securing Banks and Curbing Financial Crimes with Shufti AML/KYC Solution Explore More

    Blog

    KYC/AML Compliance – A Roadblock for Money Mules and Illicit Fund Transfers

    Cybercrimes are becoming increasingly complex and diverse in the era of digitization, with frauds...

    KYC/AML Compliance – A Roadblock for Money Mules and Illicit Fund Transfers Explore More

    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, Identity & KYC

    KYC Compliance – Strengthening Fraud Prevention Across the Globe

    Know Your Customer (KYC)  The widespread availability of the internet has made our world more con...

    KYC Compliance – Strengthening Fraud Prevention Across the Globe 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

    5 Technology Trends To Disrupt Banking in 2020

    Living in the digital era, technology is driving major changes in almost every industry. Whether ...

    5 Technology Trends To Disrupt Banking in 2020 Explore More

    Blog

    Addressing Regulatory Compliance in Online Gambling with Effective AML Screening

    The internet is a key risk element for gambling because it gives the user a sense of obscurity, t...

    Addressing Regulatory Compliance in Online Gambling with Effective AML Screening Explore More

    Blog

    Identity Verification and Prevailing Crimes – How Shufti’s Proof of Verification Services Can Help

    With growing digitization, emerging technologies, and increased use of online transactions, a hug...

    Identity Verification and Prevailing Crimes – How Shufti’s Proof of Verification Services Can Help 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

    Artificial Intelligence, Blog, Fraud Prevention

    The Role of Artificial Intelligence in the Future Of Financial Fraud Detection

    Until a few years ago Artificial Intelligence seemed like a thing from sci-fi movies. The whole c...

    The Role of Artificial Intelligence in the Future Of Financial Fraud Detection Explore More

    Blog

    Cybersecurity vs User Experience – Knowing the Art of Balancing

    Several years of debate between cybersecurity and customer experience has driven most people craz...

    Cybersecurity vs User Experience – Knowing the Art of Balancing Explore More

    Blog

    Strengthening digital businesses with online age verification

    It is projected that by the end of 2021, 2.4 billion will buy products and services online, up 46...

    Strengthening digital businesses with online age verification Explore More

    Blog

    May 2023 Recap: Major Security Breaches and Penalties

    May 2023 witnessed several security breaches wreaking havoc on the digital landscape. High-profil...

    May 2023 Recap: Major Security Breaches and Penalties 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

    Why Digital Identity Verification is Booming – A Detailed Insight

    According to the report “Digital Identity & Document Verification Market & Technology Ana...

    Why Digital Identity Verification is Booming – A Detailed Insight 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

    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

    Cybersecurity vs User Experience – Knowing the Art of Balancing

    Several years of debate between cybersecurity and customer experience has driven most people craz...

    Cybersecurity vs User Experience – Knowing the Art of Balancing Explore More

    Blog

    A Detailed Insight into the Best Practices for Digital Currency Providers

    The world has seen an overwhelming rate of development in the cryptocurrency sector with Centrali...

    A Detailed Insight into the Best Practices for Digital Currency Providers Explore More

    Blog

    The Future of Identity Verification: Shufti CEO Shahid Hanif on Adaptability, Innovation, and Technology Leadership

    As fraud threats become increasingly sophisticated and regulatory landscapes evolve, businesses m...

    The Future of Identity Verification: Shufti CEO Shahid Hanif on Adaptability, Innovation, and Technology Leadership 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 Checklist: A Comprehensive Guide for Businesses and Financial Institutions

    In the ever-evolving landscape of finance, having a solid defence against financial crime is cruc...

    KYC Checklist: A Comprehensive Guide for Businesses and Financial Institutions Explore More

    Blog

    What You Need to Know About Switzerland’s Crypto AML Rules by FINMA

    Switzerland is historically famous for being a global hub for gold. However, the new digital gold...

    What You Need to Know About Switzerland’s Crypto AML Rules by FINMA Explore More

    Blog

    Blockchain and cryptocurrency security Guide

    Online bitcoin business might have experienced a slump in recent months but still, it remains to ...

    Blockchain and cryptocurrency security Guide 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

    How machine learning changed facial recognition technology?

    We are entering a new era of fast and secure authentication clubbed with a perfect storm of digit...

    How machine learning changed facial recognition technology? 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, 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

    The Most Frequently Asked Questions about Video KYC

    In today’s digital era, the escalating prevalence of identity theft poses a significant con...

    The Most Frequently Asked Questions about Video KYC Explore More

    Blog

    Implementation of AML compliance – Challenges and fundamentals

    With the advancement in security controls, financial businesses are becoming fraud and stress-fre...

    Implementation of AML compliance – Challenges and fundamentals Explore More

    Blog

    How Shufti’s KYC Solution Can Ensure Compliance For Call Centers Fighting Crime

    With emerging technologies and rapid digitization, the world is relying on the web and a variety ...

    How Shufti’s KYC Solution Can Ensure Compliance For Call Centers Fighting Crime Explore More

    Blog

    Which KYC Solution is Right for Your Business?

    KYC solutions are vital for assessing consumer risk and a legal necessity for complying with Anti...

    Which KYC Solution is Right for Your Business? Explore More

    Blog

    Keeping AI Bias Out of the IDV Game with Shufti

    Consider this: 85% of financial institutions today use some form of AI in their products. The tec...

    Keeping AI Bias Out of the IDV Game with Shufti 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

    Top 7 Trends Shaping the Future of Gambling Industry in 2023

    Amidst technological advancement and the changing regulatory landscape, the gaming sector demonst...

    Top 7 Trends Shaping the Future of Gambling Industry in 2023 Explore More

    Blog

    Securing Transactions and Operations with Biometric Consent Verification in Digital Banking

    In the modern digital world, secure business operations are crucial.  The focus on maintaining se...

    Securing Transactions and Operations with Biometric Consent Verification in Digital Banking 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

    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

    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

    The Ultimate KYC Checklist for 2023 to Ensure Regulatory Compliance

    Non-compliance cost businesses billions of dollars. Regulators have charged financial firms with ...

    The Ultimate KYC Checklist for 2023 to Ensure Regulatory Compliance 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

    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

    January 2023 Recap: Major Events Worldwide and How AML Verification Solution Can Help

    Noncompliance with Know your Customer and Anti Money Laundering (KYC) regulations continue to pla...

    January 2023 Recap: Major Events Worldwide and How AML Verification Solution Can Help Explore More

    Blog

    Understanding Facial Identification: Face Verification vs. Face Recognition

    Many terms in the biometrics field are used interchangeably, particularly regarding facial verifi...

    Understanding Facial Identification: Face Verification vs. Face Recognition Explore More

    Blog

    Top 8 Facial Recognition trends to watch in 2020

    Facial recognition has been gaining prominence in recent times, owing to the benefits it offers o...

    Top 8 Facial Recognition trends to watch in 2020 Explore More

    Blog

    The Benefits and Best Practices of Deploying Facial Recognition in the Workplace

    With the rapid shift towards digitisation, keeping track of the most recent technological develop...

    The Benefits and Best Practices of Deploying Facial Recognition in the Workplace 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 Dating Scams – ID Verification Solution to the Rescue

    COVID-19 exposures and its associated risks with today’s in-person meetups and traditional ...

    Online Dating Scams – ID Verification Solution to the Rescue Explore More

    Blog

    AML Compliance in High-End Vehicle and Yacht Sales

    High-end vehicles and expensive properties are the universal status symbols that represent the ex...

    AML Compliance in High-End Vehicle and Yacht Sales Explore More

    Blog

    How Effective is Transaction Monitoring in Fighting Financial Crime?

    As per the United Nation’s calculations, nearly $2 trillion is laundered annually worldwide, adve...

    How Effective is Transaction Monitoring in Fighting Financial Crime? Explore More

    Blog

    Leveling Up Identity Verification To Meet This Moment

    Companies around the world contend with two digital identity challenges that seem mutually exclus...

    Leveling Up Identity Verification To Meet This Moment 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

    COVID Certificate Verification – Mounting Cases of Worldwide COVID-19 Fraud

    Where the coronavirus pandemic has been all about social safety protocols and vaccine distributio...

    COVID Certificate Verification – Mounting Cases of Worldwide COVID-19 Fraud Explore More

    Blog

    The 10 Biggest DeFi Hacks of 2022 and How Can KYC/AML Compliance Help

    The crypto industry witnessed a challenging year in 2022, marked by numerous hacks and scams, hig...

    The 10 Biggest DeFi Hacks of 2022 and How Can KYC/AML Compliance Help Explore More

    Blog

    How ID Verification Helps in Fighting Digital Scams?

    ID VERIFICATION: Digital scams are common phenomena and it affects all types of businesses in eve...

    How ID Verification Helps in Fighting Digital Scams? 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

    The UK “Children’s Code” – Laying New Grounds for Age Verification

    A 12-month grace period for compliance with a set of standards, introduced for protecting childre...

    The UK “Children’s Code” – Laying New Grounds for Age Verification Explore More

    Blog

    AML Compliance in the Insurance Sector – Red Flags to Look Out For

    The insurance sector commonly faces criminal activities like money laundering and terrorist finan...

    AML Compliance in the Insurance Sector – Red Flags to Look Out For Explore More

    Blog

    7 Best KYC and Fraud Prevention Tips for Online Businesses

    With the explosion of internet and web applications, the online interaction between consumers and...

    7 Best KYC and Fraud Prevention Tips for Online Businesses 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