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

    216.73.217.4

    The Truth Around DeFi Compliance – Bridging the Transparency Gap

    Financial markets around the world have seen increased popularity with the advent of decentralised finance (DeFi). As a result, the crypto sector has also seen a rapid boom in investments and transition towards the digital space, opening new doors of innovation for peer-to-peer exchanges. The fact that these distributive systems are still emerging makes them less prone to global rules and regulations set forth by regulators as in the current financial industry. But in order to build transparency and trust, the industry tends to develop frameworks to better govern its procedures for wider user acceptance.

    This blog highlights the emerging decentralised financial systems, their staggering growth in the market, and the essential compliance measures to prevent monetary crime through these channels. 

    Financial Services – Then vs Now

    As a rule of thumb, financial service providers act as a third party communication channel between the customer and the business. These intermediaries or man-in-the-middle parties charged heavy fees to cover up service charges and meet their clients’ financial needs. They also need to perform Know Your Customer (KYC) procedures that take a significant amount of time – ultimately affecting the customer experience.

    Assume the example of PayPal which connects people anywhere around the world so that they can make digital transactions in no time regardless of where they are currently present. In return, it charges them a small sum of money as a service fee. 

    How is DeFi Different?

    With DeFi, consumers are not reliant on a central authority like a bank, can significantly reduce third-party tariffs, and perform effortless end-to-end transactions stored on a digital public ledger. The various financial products and services that incorporate DeFi create a unique user experience that in the traditional financial system seems impossible given the stringent KYC/AML regulations. 

    When we talk about decentralised models, one important thing to note are the smart contracts which replace traditional bank transfers. These smart contracts – digital documents of transactional records and consent – over online platforms are now replacing operations that were once performed by financial entities ending the long-retained monopoly. However, ensuring the legitimacy of these digital transactions remains a concern for global and domestic watchdogs such as FinCEN, EU and FATF

    DeFi Over the Years – A Force to Reckon With 

    With cryptocurrency and Non-fungible Tokens (NFTs) soaring sky high in the past few years, DeFi has been the centre of attention not only for investors but also for businesses operating in the online space. A quick way to determine this growth is through keeping an eye on the Total Locked Value or TLV which is the combined sum of values of all the tokens stored on the public ledger. This number, acting as a security interest, is often used to protect transactions by utilising various DeFi protocols.

    The future of decentralised finance is promising since it is rapidly growing. Despite the fact that offering a service or being a mere consumer in this sector requires the user to be technically sound about crypto industry norms, it is an apple of the eye for financial tech giants and end-users alike. Moreover, Decentralised Exchanges (DEXs) are now enabling people to exchange various kinds of virtual currencies, and conversion of asset-backed currencies like the USD.  

    Compliance Measures of DeFi Systems

    Regulating the DeFi sector is no simple task since technologies are highly complex and emerging. But to ensure the crypto industry does not serve as a haven for money laundering and other financial crime, it must be modulated given the same rules and regulations as the traditional financial system. One such regulation is the 6AMLD which entails 22 predicated offences and a regulatory framework to streamline the virtual asset landscape.

    It comes with increased non-compliance penalties highlighting that crypto exchanges and DeFi service providers should develop viable measures to safeguard crypto wallet users, and to prevent financial crimes leading to money laundering and terrorist financing, thereby emphasising AML/CFT compliance

    FATF’s Take on VASPs

    The Financial Action Task Force, the global supervisory watchdog, provides insight into how decentralised finance can play its role against global money laundering. Its Travel Rule for VASPs (Virtual Asset Service Providers), which is also Recommendation 16, directs financial institutions and digital asset providers to report suspicious transactional information to regulatory authorities. The 2021 update by FATF mentions that:

    “The FATF should further review its draft guidance to ensure it is providing a clear message on how to apply the standards to decentralised structures, including the definition of a VASP, taking into account the risks, limitations and size of this sector.”

    The guidelines laid out by FATF directly address concerns related to anonymity and its role in increasing financial crime. DeFi exchanges can reduce such illicit activities through their channels by ensuring thorough KYC verification of their users.

    How can Shufti Help?

    Decentralised financial systems, despite providing convenience and effortless user experience need regulatory procedures to safeguard consumers. Service providers offering digital assets should verify if their customers are transparent and honest in what personal information they give out. To cater to the needs of such blockchain-based businesses, Shufti’s AI-powered identity verification solution can offer great value, both in terms of legitimate customers as well as mitigating impersonation fraud and identity theft instances. 

    Our solution incorporates global KYC and AML compliance standards which enable businesses to stay compliant and ensure trust and loyalty among customers. With an accuracy of 98.67%, users can now breeze through the IDV process. 

    Are you a DeFi-based service provider looking for IDV services? Talk to our team for expert insight.

    Related Posts

    Blog

    A 2024 Overview of Identity Document Forgery

    As technologies like artificial intelligence and machine learning have advanced, they have signif...

    A 2024 Overview of Identity Document Forgery Explore More

    Blog

    Know Your Investor (KYI) – Identifying and Eliminating Russian Sanctions Evaders

    For quite some time, wealthy Russian businessmen and oligarchs have been investing their money in...

    Know Your Investor (KYI) – Identifying and Eliminating Russian Sanctions Evaders Explore More

    Blog

    Romance Scams: Protect Your Heart and Wallet with Identity Verification

    People searching for love online sometimes meet the unfortunate fate of a broken heart and someti...

    Romance Scams: Protect Your Heart and Wallet with Identity Verification 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

    Securing Investment Industry with Shufti’s Investor Verification Solution

    In this tech-driven world, perpetrators and organized crime groups are adopting sophisticated met...

    Securing Investment Industry with Shufti’s Investor Verification Solution Explore More

    Blog

    5 Features of the Best Transaction Monitoring Solution

    Criminals are continuously devising sophisticated strategies to launder illegally-acquired money....

    5 Features of the Best Transaction Monitoring Solution Explore More

    Blog

    Talent Acquisition Fraud – Hiring Legitimate Candidates with Identity Verification

    Along with the rise in virtual and remote work, the number of cases of recruitment fraud is incre...

    Talent Acquisition Fraud – Hiring Legitimate Candidates with Identity Verification Explore More

    Blog, Reg Tech

    How Identity Verification Services make Regulatory Compliance Easier?

    Financial institutions and banks have ended up in a loop of dumping billions of dollars because o...

    How Identity Verification Services make Regulatory Compliance Easier? Explore More

    Blog, Financial Crime / AML

    FSA demands greater AML Compliance from Japanese Crypto Exchanges

    In a recent move, Financial Services Agency (FSA), the Japanese Financial regulator, has demanded...

    FSA demands greater AML Compliance from Japanese Crypto Exchanges Explore More

    Blog

    The Real Cost of Convenience: Securing 
E-Commerce in the Age of Instant Gratification

    In just a few years, E-commerce has transitioned from a simple, modern convenience to the backbon...

    The Real Cost of Convenience: Securing 
E-Commerce in the Age of Instant Gratification 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

    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

    Simplify Payment Processes with Biometric Authentication

    A developing trend that is altering how customers handle their money is the use of biometric auth...

    Simplify Payment Processes with Biometric Authentication Explore More

    Blog

    AI-Powered OCR to Combat Challenges During Manual Data Processing

    Every industry has to deal with tons of customer data on a daily basis. Receiving information, ex...

    AI-Powered OCR to Combat Challenges During Manual Data Processing Explore More

    Blog

    Preventing Criminal Abuse of the Australian Crypto Market with Shufti’s AML Screening Services

    Cryptocurrencies have been around for a decade and investors have found a feasible option for inv...

    Preventing Criminal Abuse of the Australian Crypto Market with Shufti’s AML Screening Services Explore More

    Blog

    A Brief Overview of the RegTech Industry [2022 Update]

    The rising financial crimes have raised concerns of global regulatory watchdogs giving rise to Re...

    A Brief Overview of the RegTech Industry [2022 Update] Explore More

    Blog

    Money Laundering Spikes High in the Gulf Region – What’s Next?

    Given the rapid increase in FinCrime, the Gulf region is now working day in and day out to impose...

    Money Laundering Spikes High in the Gulf Region – What’s Next? 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

    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

    Mounting Cases of Money Laundering through Digital Currencies in 2021

    Even though cryptocurrencies like Bitcoin, Ethereum, and Dogecoin are increasing rapidly, yet the...

    Mounting Cases of Money Laundering through Digital Currencies in 2021 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

    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

    Romance Scams: Protect Your Heart and Wallet with Identity Verification

    People searching for love online sometimes meet the unfortunate fate of a broken heart and someti...

    Romance Scams: Protect Your Heart and Wallet with Identity Verification Explore More

    Blog, Identity & KYC

    Which KYC Documents are Required for Customer Verification?

    Name, Rank, Brigade, and Serial Number. That’s the only information military organizations across...

    Which KYC Documents are Required for Customer Verification? Explore More

    Blog

    KYC | How to perform KYC verification in three simple steps

    Know Your Customer (KYC) is an identity verification process that plays a critical role in the pr...

    KYC | How to perform KYC verification in three simple steps 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

    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

    AML/CFT Compliance – Why Australia is a Safe Haven for Money Laundering

    Recent inquiries and cases against major Australian casinos have raised questions about the measu...

    AML/CFT Compliance – Why Australia is a Safe Haven for Money Laundering Explore More

    Blog

    AI-Powered OCR to Combat Challenges During Manual Data Processing

    Every industry has to deal with tons of customer data on a daily basis. Receiving information, ex...

    AI-Powered OCR to Combat Challenges During Manual Data Processing Explore More

    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

    The Role of Digital Identity in Business-Customer Relationship

    Dealing with any business online have you ever wondered where this relationship would go? We all ...

    The Role of Digital Identity in Business-Customer Relationship Explore More

    Blog

    Facial recognition technology grooving into cruise ships for ID verification

    No more boarding frustration, no more standing in the queues for hours… The travel industry is re...

    Facial recognition technology grooving into cruise ships for ID verification Explore More

    Blog, Identity & KYC

    Common Online Scams You Need to Know About

    The explosion of the internet and the world moving towards the fourth industrial revolution have ...

    Common Online Scams You Need to Know About Explore More

    Blog

    Top Cryptocurrency Trends to Look Out for in 2022

    2021 has been a remarkable year for cryptocurrency as because of COVID-19 outbreak crypto industr...

    Top Cryptocurrency Trends to Look Out for in 2022 Explore More

    Blog

    Identity Verification: A Bulletproof Vest Against Sharing Economy Fraud

    Over the previous year, you might have observed how the world has become increasingly dependent o...

    Identity Verification: A Bulletproof Vest Against Sharing Economy Fraud Explore More

    Blog

    5 RegTech Applications That Will Govern the Financial Regime in 2021

    RegTech, short for Regulatory Technology, is the subset of FinTech which bridges the gap between ...

    5 RegTech Applications That Will Govern the Financial Regime in 2021 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

    Source of Funds | A Critical Step in Mitigating the Risk of Money Laundering

    As the world continues on a path of digitization, business operations persist to undergo signific...

    Source of Funds | A Critical Step in Mitigating the Risk of Money Laundering Explore More

    Blog

    How FinTech can Leverage on FINMA Blockchain Initiative?

    Swiss Financial Markets Supervisory Authority (FINMA) has taken a revolutionary step in the histo...

    How FinTech can Leverage on FINMA Blockchain Initiative? 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

    Curbing Financial Crimes and Securing Art Market With Shufti’s AML Screening Services

    The global art industry is embracing digitization. However, the technological advancements and a ...

    Curbing Financial Crimes and Securing Art Market With Shufti’s AML Screening Services Explore More

    Blog

    Securing Identities in the Age of AI with Identity Verification

    The digital age has offered unprecedented convenience and connection, but it has also introduced ...

    Securing Identities in the Age of AI with Identity Verification Explore More

    Blog

    Bitcoin ATMs – how it works and KYC compliance

    Bitcoin ATMs are everything an ATM is and isn’t. The world of finance and banking has chang...

    Bitcoin ATMs – how it works and KYC compliance 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

    How Businesses Can Leverage Optical Character Recognition Technology in 2023

    Optical Character Recognition (OCR) has revolutionised how businesses gather, process, and analys...

    How Businesses Can Leverage Optical Character Recognition Technology in 2023 Explore More

    Blog, Financial Crime / AML

    South Korea want Crypto Exchanges to adopt Digital KYC and AML Compliance

    South Korea is soon going to adopt regulatory measures to bring in crypto exchanges under regulat...

    South Korea want Crypto Exchanges to adopt Digital KYC and AML Compliance Explore More

    Blog

    Shufti Beyond Borders – Customer Experience That Drives Results

    About Stanton Brooks Stanton Brooks is a global customer experience (CX) leader specializing in d...

    Shufti Beyond Borders – Customer Experience That Drives Results Explore More

    Blog, Online Marketplace

    How Identity Verification Solutions Can Make Summer Travel a Breeze and Generate Revenue?

    The travel industry is a unique business category servicing clients from various destinations and...

    How Identity Verification Solutions Can Make Summer Travel a Breeze and Generate Revenue? 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, Online Marketplace

    How the Rise of ID Verification Promises Trillions of Dollars for Online Marketplace?

    The affliction of cybercrimes and online frauds has reached such high proportions that the cost o...

    How the Rise of ID Verification Promises Trillions of Dollars for Online Marketplace? Explore More

    Blog

    Enhanced Due Diligence: Identifying High-Risk Customers in the Banking Sector

    The digitisation of our world and economies have introduced greater ease and efficiency to our pr...

    Enhanced Due Diligence: Identifying High-Risk Customers in the Banking Sector Explore More

    Blog, Reg Tech

    3 Reasons why RegTech is the Future of Innovation?

    Regulatory Technologies, commonly referred to as RegTech, is an innovative use case of Financial ...

    3 Reasons why RegTech is the Future of Innovation? Explore More

    Blog

    The Role of Digital Identity in Business-Customer Relationship

    Dealing with any business online have you ever wondered where this relationship would go? We all ...

    The Role of Digital Identity in Business-Customer Relationship 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

    Age Verification Service – How Businesses can Identify Underage Visitors in Real Time?

    When it comes online retail, one has to know that in such an age of fast-moving technology and in...

    Age Verification Service – How Businesses can Identify Underage Visitors in Real Time? Explore More

    Blog

    Anti-Money Laundering (AML) Solutions – Ensuring Responsible Gambling and Data Protection

    Like other industries, the gambling industry is also becoming a prime target of criminals. Howeve...

    Anti-Money Laundering (AML) Solutions – Ensuring Responsible Gambling and Data Protection 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

    EDD: Safeguarding Business Interests with Comprehensive Risk Mitigation

    Traditional due diligence practices may not provide sufficient insights into higher-risk business...

    EDD: Safeguarding Business Interests with Comprehensive Risk Mitigation Explore More

    Blog

    Document Verification Checks: Streamlining the Onboarding Process for New Customers

    Verifying documents is critical to regulatory compliance, risk assessment, and many organisations...

    Document Verification Checks: Streamlining the Onboarding Process for New Customers Explore More

    Blog

    EU’s AMLD5: What does it mean and how will it impact the AML regulation regimes?

    From the Panama papers, Paradise leaks and Danske Bank case to the most recent revelations about ...

    EU’s AMLD5: What does it mean and how will it impact the AML regulation regimes? Explore More

    Blog

    Industries that Need Digital Identity Verification and Why?

    With continuous improvements in technology, different industries of the world are streamlining th...

    Industries that Need Digital Identity Verification and Why? Explore More

    Blog

    An Insight into Money Laundering Through the UAE’s Gold Industry

    Since the beginning of time, gold has been considered a medium for payment and trading with its e...

    An Insight into Money Laundering Through the UAE’s Gold Industry Explore More

    Blog

    AML and KYC Compliance – Big Data Optimising the Regulatory Landscape

    Today, different sectors face an influx of user data that they need to process and analyse. To de...

    AML and KYC Compliance – Big Data Optimising the Regulatory Landscape Explore More

    Blog

    Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference?

     Often, people confuse CIP and KYC and think both are the same. Customer Identification ...

    Customer Identification Programme (CIP) vs Know Your Customer (KYC) | What’s the Difference? Explore More

    Blog, Online Marketplace

    Industrial significance of KYC / AML Compliance in 2019

    As the type and amount of fraudulent activities have increased over the years, governments and re...

    Industrial significance of KYC / AML Compliance in 2019 Explore More

    Blog

    Age Verification: Use Cases, Significance and Regulations

    This pillar post talks about the significance of digital age verification, how it works, what are...

    Age Verification: Use Cases, Significance and Regulations Explore More

    Blog

    Document Verification Checks: Streamlining the Onboarding Process for New Customers

    Verifying documents is critical to regulatory compliance, risk assessment, and many organisations...

    Document Verification Checks: Streamlining the Onboarding Process for New Customers Explore More

    Blog

    KYC For Sharing Economy – Building a Safe & Trusted Environment that Retains Customers

    “Sharing Economy” is a term that has become popular in recent years, and the current digital worl...

    KYC For Sharing Economy – Building a Safe & Trusted Environment that Retains Customers 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

    KYC/AML Compliance – Eliminating Financial Crime in Challenger Banks

    Challenger banks have emerged in the financial services paradigm by bringing digital innovations ...

    KYC/AML Compliance – Eliminating Financial Crime in Challenger Banks Explore More

    Blog

    The Reality Behind Money Laundering through Environmental Crimes

    Environmental crimes are among the most prevailing and profiting offenses present in the world. C...

    The Reality Behind Money Laundering through Environmental Crimes Explore More

    Blog

    Understanding UBOs: A Critical Component in Enhancing Security in the Financial Sector

    Regulated entities must be aware of who they are interacting with. Validating the real identities...

    Understanding UBOs: A Critical Component in Enhancing Security in the Financial Sector 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