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

    18.97.9.174

    AML/KYC 2020 – how 2019 changed the landscape of global regimes?

    AML KYC how changed the landscape of global regimes

    Copy pasting your 2019 AML/KYC compliance strategy to 2020 plan will not do the job. Businesses need to change their AML/KYC compliance strategy to comply with the latest regulations. 

    Anti Money Laundering (AML) and Know Your Customer (KYC) regimes evolved during 2019 on a global scale. Regulatory authorities like FATF, FinCEN, FINTRAC, and the EU government took some rigid steps to make KYC and AML compliance a global phenomenon

    Regulatory and supervisory authorities are bringing all the industries under the radar to make AML/KYC compliance inevitable for reporting entities. The Danske Bank and Swedbank scandal made the global financial sector learn the lesson and to take compliance seriously.  Also, the heavy fines charged from non-complaint online businesses like gaming, cryptocurrencies, etc. initiated the trend of AML/KYC compliance among these industries. 

    Below is a brief review of some major changes that occurred in KYC and AML regimes around the globe in 2019. 

    Fifth AML Directive (AMLD 5) of the EU to be implemented in 2020

    EU introduced the fifth AML directive in 2019 which is all set to change the AML compliance in the EU. The businesses are required to comply with this law by January 2020. 

    AMLD 5 introduced the amendments for financial institutions, prepaid cards, credit institutions, real estate, legal sector, and virtual currencies, etc. The new directive requires the reporting entities to practice enhanced due diligence. 

    The identity verification threshold on remote transactions of prepaid cards was reduced to EUR 50. Also, AMLD5 called for a reduction in the threshold of anonymous prepaid cards – from €250 to €150. Now the prepaid card providers will have to practice customer due diligence on every customer making a transaction or depositing more than €150 in his prepaid card account. This will help the authorities control the anonymous use of prepaid cards for illegal fund transfers. 

    Virtual currencies need to apply customer due diligence just like traditional financial institutions. So thorough KYC and AML screening of customers is inevitable for businesses. 

    FATF digital ID Systems Guidance

     

    FATF took the Regtech initiative back in 2017 by showing a positive attitude towards technological advancements in the financial industry and regulatory framework. 

    FAFT issued a guidance paper for digital ID systems. The guidance paper is open to suggestions from the stakeholders. The stakeholders of this guidance are the regulatory and supervisory authorities, businesses and government agencies. 

    The guidance provides a brief insight into the process, components and technical standards of digital ID systems. It referred to NIFT Digital ID Guidelines and EU’s EIDAS Regulations

    As FATF is a global authority and has several member countries from every corner of the world it is projected to make a huge change in global AML/KYC compliance practices of businesses. 

    FATF recommendations for the legal sector, virtual assets

     

    In June 2019, FATF gave revised recommendations for the legal sector and virtual assets. Now, these sectors in the member countries of FATF are required to practice thorough AML and KYC screening on their customers. Legal professionals are guided to verify the identity of the Ultimate Beneficiary Owners (UBOs) of the businesses they work with. 

    Also, businesses dealing with virtual assets (cryptocurrencies,etc.) are required to perform AML/KYC screening on their customers just like the financial institutions. 

    FATF also drafted the recommendations for art dealers, weapon dealers, and precious metal dealers to exercise regulatory compliance. These regulations are drafted to bridge any loopholes in the regulatory framework. 

    Global authorities becoming more stringent towards real estate

     

    Global regulatory authorities are becoming stringent towards real-estate. This sector is commonly used for money laundering. Canada, Singapore, UK, and Germany are some countries that imposed owner verification regulations on real-estate in the past years. In 2018, (AML) legislation was introduced according to which foreign owners were supposed to identify themselves. The purpose of this bill was to find out who is the owner of a particular real estate property. By 2021, the registry will be made public. 

    AMLD 6

     

    The AMLD 6 was also proposed in 2019. Sixth Anti-Money Laundering Directive (AMLD6) highlights a stringent framework to combat money laundering and terrorist financing. It extends the scope of criminal liabilities and entities with an updated list of predicate offenses. AMLD6 came up with tougher penalties and widens the criminal liability to legal persons. 

    AUSTRAC all set to regulate MSBs

     

    AUSTRAC launched a campaign against the unregistered money services businesses (MSBs). It requires the MSBs to register with AUSTRAC and to follow the AML/KYC regulations carved for them. Money transfer businesses that will not register with AUSTRAC will be liable for a fine of $420,000, seven years jail or both. 

    These new regulations are implemented to mitigate money laundering and terrorist financing in the financial infrastructure. The MSBs are exploited by financial criminals due to a lack of customer due diligence practices in this sector.

    Other than AUSTRAC, FATF and FINTRAC also adopted a risk-based approach towards MSBs. 

    The U.S treasury international financial institutions initiative

     

    The U.S expanded its counter-terrorism powers and now targets the international financial institutions around the world that aid the terrorist groups working in the U.S. Also it added three Korean groups, namely, Bluenoroff, Lazarus Group, and Andriel into sanctions lists. 

    The UK expanding the scope of MLA-2017

     

    The UK also amended its KYC and AML regulations and expanded the scope to an international level. The Money laundering Act (MLA-2017) of the UK was amended. The UK-based businesses will practice the MLA rules in their international affiliates operating in non-EEA states. 

    To wrap up, 2019 was a phenomenal year for KYC/AML regulations where the authorities not only worked on enhancing the AML regulations but also on improving the compliance habit of liable entities.  

    The fraud and planned crime cases in the past few years made the regulatory authorities to draft more focused and detailed KYC/AML regulations to mitigate money laundering, terrorist financing, and crimes related to identity theft. One fake or stolen identity if used wrongfully could initiate a chain of crime that could affect a lot of stakeholders. 

    The changes that happened in 2019, made regulatory compliance inevitable for businesses. Many future-oriented businesses are using KYC/AML screening solutions to practice global compliance. Because there are just two ways out of this situation, either it is compliance that leads to fraud-free growth or non-compliance that leads to hefty non-compliance penalties and fraud losses. 

    Related Posts

    Blog

    ID Verification for Ultimate Subscription Fraud Prevention

    Cellular phones were first introduced in the consumer market in 1973 when Motorolla first introdu...

    ID Verification for Ultimate Subscription Fraud Prevention 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

    May 2023 Recap: The Latest Global Regulatory Updates

    Technological advancements have paved the way for scammers to perpetrate various financial crimes...

    May 2023 Recap: The Latest Global Regulatory Updates Explore More

    Blog

    The Top 10 Advantages of OCR for Business Owners

    In our current data-driven and digital world, many organisations struggle with vast quantities of...

    The Top 10 Advantages of OCR for Business Owners Explore More

    Blog

    How Businesses Can Avoid Identity Verification Fraud in 2019?

    With a bulk of customers using online services, businesses wish to digitise their operations and ...

    How Businesses Can Avoid Identity Verification Fraud in 2019? Explore More

    Blog

    Identity verification for fair and free US elections amid COVID-19

    US Elections 2020 is the talk of the town these days. But with COVID-19 pandemic going on how wil...

    Identity verification for fair and free US elections amid COVID-19 Explore More

    Blog

    Role of Enhanced Due Diligence in Combating Money Laundering

    Enhanced Due Diligence (EDD) is an advanced and refined version of KYC due diligence process that...

    Role of Enhanced Due Diligence in Combating Money Laundering Explore More

    Blog

    5 AI-Powered Products to Boost Digital Experiences Post Covid

    If there’s one thing financial institutions understood within the first year of global shutdowns ...

    5 AI-Powered Products to Boost Digital Experiences Post Covid 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, Identity & KYC

    4 Ways KYC Banking Regulations are Shaping the Future

    Know Your Customer (KYC) regulations are vital for the banking system. Money laundering, depositi...

    4 Ways KYC Banking Regulations are Shaping the Future Explore More

    Blog

    Is NFC Really the Future? The Mystery Solved!

    We arguably live in a world that is now dependent on technology. From online payments to online e...

    Is NFC Really the Future? The Mystery Solved! Explore More

    Blog

    Digital Wallet Fraud | How AML Screening Solution Can Help

    Digital wallets are becoming everyone’s go-to transaction method and the total number of e-wallet...

    Digital Wallet Fraud | How AML Screening Solution Can Help 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

    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

    Reshaping Travel and Tourism with Instant Facial Recognition

    Few technologies have sparked much debate as much as facial recognition. Today, it is considered ...

    Reshaping Travel and Tourism with Instant Facial Recognition Explore More

    Blog

    High-Risk Countries and The Significance of AML/CFT Regulations – How Shufti Can Help

    Money laundering and terrorist financing are becoming a global concern. To overcome the risk of c...

    High-Risk Countries and The Significance of AML/CFT Regulations – How Shufti Can Help Explore More

    Blog

    The Emerging Threat of DeepFakes and the Role of Video KYC

    With technological advancement, cybercriminals are revising their strategies to commit fraud. Cri...

    The Emerging Threat of DeepFakes and the Role of Video KYC 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

    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

    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

    Blog

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

    As a result of rapid digitization and the emergence of decentralized services, the financial mark...

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

    Blog

    Protect Your Bitcoin Business With KYC Compliance

    Even with a lot of resistance to its use as a form of currency, Bitcoin and its blockchain techno...

    Protect Your Bitcoin Business With KYC Compliance 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

    Russian Sanctions Evasion – Is the Art Industry the Next Target for Money Laundering?

    As regulatory authorities are seizing the yachts and real estate belonging to Russian oligarchs, ...

    Russian Sanctions Evasion – Is the Art Industry the Next Target for Money Laundering? Explore More

    Blog

    Five Solutions to tackle business verification challenges

    Know Your Customer (KYC) is critical for verifying the clients before doing business with them, b...

    Five Solutions to tackle business verification challenges Explore More

    Blog

    Gambling Compliance or Data Protection? The Puzzle is Solved!

    The evolving regulations for the gambling industry are likely to increase compliance challenges i...

    Gambling Compliance or Data Protection? The Puzzle is Solved! Explore More

    Blog, Identity & KYC

    Digital ID Verification

      The Current Situation Digital ID Verification is the key to securing your business in thes...

    Digital ID Verification Explore More

    Blog, Financial Crime / AML

    Shufti integrates AML Compliance into its end-to-end Verification Services

    Shufti has now launched AML compliance in its set of identity verification services to provid...

    Shufti integrates AML Compliance into its end-to-end Verification Services Explore More

    Blog

    Strategic KYC/AML Checks for the Financial Industry – Staying a Step Ahead of Fraudsters

    In recent times, the financial industry has witnessed significant technological changes which hav...

    Strategic KYC/AML Checks for the Financial Industry – Staying a Step Ahead of Fraudsters 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

    Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector

    Banks are thought to be the most important part of the financial system, playing a vital role in ...

    Ensuring Compliance and Preventing Losses Due to Fraud in the Banking Sector 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

    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

    Breaking the KYC Remediation Cycle through a Risk-based Approach

    Banks have paid more than USD 30 billion over the past few years due to ineffective policies to c...

    Breaking the KYC Remediation Cycle through a Risk-based Approach Explore More

    Blog

    How to Protect Yourself From Cyber Crime in the Holiday Season?

    Most people around the world do the majority of their shopping during the holiday season. Accordi...

    How to Protect Yourself From Cyber Crime in the Holiday Season? Explore More

    Blog

    Age Verification Laws and Regulations Worldwide

    The world has become increasingly digital, making it easier to access age-restricted products, se...

    Age Verification Laws and Regulations Worldwide 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

    EU’s Smart ID Wallet – Paving the Way for a Seamless Digital World

    A few days back, the European Union Commission published a draft for digital ID wallets for all t...

    EU’s Smart ID Wallet – Paving the Way for a Seamless Digital World 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, Financial Crime / AML

    Shufti integrates AML Compliance into its end-to-end Verification Services

    Shufti has now launched AML compliance in its set of identity verification services to provid...

    Shufti integrates AML Compliance into its end-to-end Verification Services Explore More

    Blog

    Prevailing Financial Crimes and AML Regulation in Argentina – How Shufti Can Help

    Argentina has faced many significant challenges due to its geographical location, including the f...

    Prevailing Financial Crimes and AML Regulation in Argentina – How Shufti Can Help Explore More

    Blog

    Trade-Based Money Laundering – How Shufti’s AML Screening Solution Helps

    International trading instruments have significant features that are making them potentially attr...

    Trade-Based Money Laundering – How Shufti’s AML Screening Solution Helps 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

    A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022]

    The adoption of cryptocurrency throughout the world has ignited the launch of new markets and reg...

    A Brief Overview of the Cryptocurrency Landscape in the US and Canada [2022] Explore More

    Blog, Business Technology

    Business Verification – Foolproof Ways to Secure Happy Customers

    Creating a winning customer experience can make for a significant competitive advantage for busin...

    Business Verification – Foolproof Ways to Secure Happy Customers Explore More

    Blog

    Holiday Season – The Time of the Year When Frauds Soar Sky High

    Despite being the “most wonderful time of the year”, the holiday season is known to have the high...

    Holiday Season – The Time of the Year When Frauds Soar Sky High Explore More

    Blog

    AML Compliance and Digital Banks – Understanding the Evolving Regulatory Landscape

    The emergence of new technologies in FinTech, increasing use of digital currencies, and alternati...

    AML Compliance and Digital Banks – Understanding the Evolving Regulatory Landscape Explore More

    Blog

    Identity verification in freelancing- no more smoke and mirrors

    Freelancing platforms are rapidly growing. In 2017, around 57 million Americans were freelancing ...

    Identity verification in freelancing- no more smoke and mirrors Explore More

    Blog, Fraud Prevention

    Cryptocurrency Scams – Checklist for Protection

    Headlines about some cryptocurrency exchange being hacked are not unusual. So far, hackers have s...

    Cryptocurrency Scams – Checklist for Protection Explore More

    Blog

    Blockchain and NFTs – Setting New Standards for Cybersecurity and Identity Management

    Non-fungible tokens (NFTs) are an evolution over the emerging concept of cryptocurrencies. As fin...

    Blockchain and NFTs – Setting  New Standards for Cybersecurity and Identity Management Explore More

    Blog

    The Future Of the Financial Sector in the Gulf Region

    Digital transformation, that has undoubtedly disrupted numerous industries worldwide, has reached...

    The Future Of the Financial Sector in the Gulf Region Explore More

    Biometric Technology, Blog, Online Marketplace

    Face Verification Becoming Vital For Travel Industry

    Over the past few years, biometric technology has become increasingly mainstream. This is due in ...

    Face Verification Becoming Vital For Travel Industry Explore More

    Blog

    Liveness Detection and IDV: An Overview of Biometric Facial Recognition

    Identity fraud and cybercrime have significantly surged in the past few years. Deepfake technolog...

    Liveness Detection and IDV: An Overview of Biometric Facial Recognition Explore More

    Blog

    Identity Verification entails a lot more than customer verification

    Identity theft and digital fraud are on the rise. Cybersecurity is of essence for all the organis...

    Identity Verification entails a lot more than customer verification Explore More

    Blog

    Estonia’s AML Act Amendments – Securing Virtual Currencies in 2022

    Estonia’s financial institutions are developed and ensure transparency as its laws are well-defin...

    Estonia’s AML Act Amendments – Securing Virtual Currencies in 2022 Explore More

    Blog

    E-Learning Platforms and Prevailing Crimes – How Shufti Can Help

    The global pandemic is prompting a phenomenal increase in online service. From doing groceries to...

    E-Learning Platforms and Prevailing Crimes – How Shufti Can Help Explore More

    Blog

    A Basic Guide to Smurfing and the Role of AML in Combating It

    Scammers employ various strategies to conceal illegally acquired funds, and one increasingly prev...

    A Basic Guide to Smurfing and the Role of AML in Combating It Explore More

    Blog, Identity & KYC

    Identity Verification Market ‘Hitting High Record’

    The advent of technology has pushed businesses to digitize their operations for better customer e...

    Identity Verification Market ‘Hitting High Record’ Explore More

    Blog

    Japan’s AML/CFT Assessment – August 2021 Report

    Financial crime is soaring sky high with digitisation becoming a part of our daily lives. Cyber a...

    Japan’s AML/CFT Assessment – August 2021 Report Explore More

    Blog

    Identity verification solutions to fight against faces of fraud

    In this digital world, billions of smart devices are circulating, connecting and communicating wi...

    Identity verification solutions to fight against faces of fraud 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

    Facial Recognition | The Principles of Responsible Use and the Legal Landscape

    One of the most popular uses of AI nowadays is facial recognition. In all likelihood, it’s ...

    Facial Recognition | The Principles of Responsible Use and the Legal Landscape 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, Identity & KYC

    Digital Document Verification Giving Wing to Recruitment Sites

    Document Verification: In an industry that’s all about people, it’s critical that you know that a...

    Digital Document Verification Giving Wing to Recruitment Sites Explore More

    Blog

    Top 6 Reasons Why RegTech Will Improve AML Compliance

    Global fines imposed to deter money laundering increased by 50% in 2022,  alarming businesses tha...

    Top 6 Reasons Why RegTech Will Improve AML Compliance Explore More

    Blog

    Electronic Identity Verification | Forecasts and Predictions

    Identities change as the world goes more digital. As more activities, like banking, socialising, ...

    Electronic Identity Verification | Forecasts and Predictions 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

    Why online alcohol industry needs robust age verification solutions?

    “Can I see some ID?” The question brick and mortar booze stores ask or at least should ask to ver...

    Why online alcohol industry needs robust age verification solutions? 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, Identity & KYC

    Digital ID Verification

      The Current Situation Digital ID Verification is the key to securing your business in thes...

    Digital ID Verification Explore More

    Blog

    Combating Money Muling Activities With Shufti’s AML Screening Services

    The coronavirus pandemic has brought about unusual changes in industries and lifestyles across th...

    Combating Money Muling Activities With Shufti’s AML Screening Services Explore More

    Blog

    A Detailed Insight into Due Diligence for SMEs in Europe

    Recent developments in due diligence legislations have prompted debate on SMEs being subject to t...

    A Detailed Insight into Due Diligence for SMEs in Europe 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