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ICC Qatar is going to have a seminar on money laundering and terrorist financing

Oliver Smith
January 20, 2020
3 minutes read
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The International Chamber of Commerce (ICC) Qatar is conducting a compliance awareness seminar on January 28 at the Qatar Chamber. This seminar intends to highlight the fight against money laundering and terrorism funding.

The seminar is titled “The Development in the Fight Against Money Laundering & Financing of Terrorism” and organized in collaboration with Refinitiv – renowned for the world’s largest provider of financial market data. ICC Qatar stated that “2020 will be an important year for Qatar” in its press statement. This year the country will be going through an evaluation by the international watchdog, Financial Action Task force (FATF).

This one-day seminar aims to focus on the latest developments in global AML/CFT compliance and regulations, and the fight against money laundering and terrorist funding in the non-banking institutes. Moreover, the seminar will highlight the various best practices that can facilitate the organizations to effectively mitigate these types of threats and risks by applying the required approach/solution.

The ICC Qatar secretary-general and Qatar Chamber board member Dr. Khalid Klefeekh al-Hajri said in their statement,

“Qatar has made great strides in combating money laundering and terrorist financing, noting that this was obvious by the issuance of the laws.”

Al-Hajri emphasized on the importance of these laws that how they are in accordance with the latest international standards adopted by major organizations and reflect Qatar’s commitment to combat money laundering and terrorist financing in every form.

In his press statement, he said,

“Qatar’s achievements are the result of combined efforts exerted by all competent bodies, ministries, and other government agencies that are members of the National Anti-Money Laundering and Combating the Financing of Terrorism Committee, which is responsible for protecting Qatar’s financial system from the risks of money laundering and terrorist financing,”

Refinitiv director of Business Development and Governance, Risk and Compliance (GRC), Mohamed Daoud who is one of the organizers of this seminar stated that many non-financial institutes have this wrong perception that AML/CFT regulations are for the banks and financial sectors only.

“A key shortcoming identified by FATF across many jurisdictions in Mena is the role of designated non-financial businesses and professions (DNFBPs) in failing short of FATF expectations.”

Daoud noted that in recent years evaluation reports of several countries that DNFBPs such as real estate agents, cross-border trading and shippings, metal/stone dealers, and some other non-financial organizations have limited or sometimes no proper understanding of AML/CFT regulation and the risk that can emerge from the lack of compliance.

In the new round of FATF evaluations, many countries are being cautious because it is not focusing on technical compliance but also on the effectiveness of deployment. Daoud pointed out

“The fourth round of mutual evaluations from FATF is a key changer as it is not anymore focusing on technical compliance and whether country laws and regulations have been amended and are in place in accordance with the 40 recommendations, but also a high focus on the effectiveness of the deployment of the regulations which proves to be very challenging for many countries.”

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Multi-Tier Security - Another Line of Defense Against Bank Account Scammers
The banking sector has been witnessing a significant rise in criminal activities is a major concern of security authorities these days. The latest reports revealed that banks have been violating KYC and AML regulations and there were skyrocketing penalties in 2020. Protecting banks and customers is necessary and identity verification is one of the best ways of doing so. However, conventional methods like manual document verification do not suffice for the needs. There must be more robust and automated systems like digital identity verification and video KYC that can enhance the efficiency of the process.

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What is Multi-Tier Security?

Multi-tier security refers to multiple layers of identity verification to enhance security in organisations. Fraudsters are developing sophisticated ways of fulfilling their malicious intent and a single layer of security cannot help companies. Therefore, there must be multiple layers of ID verification that can prevent fraudsters from entering the business.
A Summary of Bank Scams and Frauds

Over time, many different types of frauds and scams have struck the banking industry. Due to advanced technology, not only banks are streamlining their processes, but criminals have also figured out techniques to execute their plans. Many new breeds of scams have surprised organisations, especially banks. Let’s take a look at some of the fraudulent activities.

Account Takeover Fraud

Account takeover (ATO) refers to the fraud in which criminals get illegal access to bank accounts and use them for illicit activities like money laundering and chargebacks. As technology advances, fraudsters have also become sophisticated in committing account takeover fraud. There was a 43 per cent increase in account takeover fraud during the global lockdown in 2020. The numbers are expected to increase this year as well due to rapid digitisation.

New Account Fraud

A new breed of frauds struck the world a few years ago by the name new account fraud. With time, the rate of this fraud has increased and defeated all other kinds of scams. For a new account fraud, fraudsters use stolen, forged, or synthetic identities to open a new bank account, get a new credit/debit card, or loan money from the bank. According to Javelin Strategy, 3.2 million customers were affected by this fraud alone in 2018.

Identity Theft

Identity theft has been a threat to businesses for a very long time. The numbers are continuously increasing and banks are the primary target. Unfortunately, identity theft has taken various forms as well, including child identity theft, medical identity theft, and social identity theft. This enables criminals in making purchases, opening new bank accounts, and enjoying numerous other benefits with false names.

Data Breach

Data breach is a social engineering technique that fraudsters use to acquire customer information. The stolen data is later used for bank account scams, identity theft, and numerous other illegal activities. The identities stolen from a data breach are also used for new account fraud. Around 8,000 data breaches were reported in 2019. In the first half of 2020, 540 data breaches were reported only in the United States according to Statista.

Biometric Authentication – The Additional Security Layer

Biometric authentication is the additional layer of security that not only enhances the level of security, but it is also a rigid measure that fraudsters cannot dodge. Fooling biometrics is not a piece of cake for criminals because biometric authentication requires the live presence of the individual for identity verification. Voice, face, palm, iris, pupil, and retina are some of the biometric traits of an individual that are required for biometric verification.

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3D depth analysis

Micro-expression analysis

Skin texture analysis

Liveness detection

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How will Multi-Tier Security Help Your Bank?

Digital identity verification is a multi-tier security measure that your bank needs. This system has multiple methods of verifying identities that prevent fraudsters from entering the business. Here is how the process of multi-tier security works:

First, the individual has to register on your bank’s website for the identity verification process

Along with the registration details, government-issued ID documents are also submitted

Then, the information submitted is verified with the government-issued ID document

Once the documents are verified, biometric authentication comes in action and face verification checks are performed

Customers have to submit their selfie or video during verification which is matched with the image on the ID document

Lastly, consent verification checks are also performed in which the customer has to submit a handwritten or typed consent note

Conclusion

All in all, verifying identities with the manual method is not an adequate option in the digital world. Digital identity verification is an automated process of verifying identities with layers of security to increase the efficacy of the process. One of the strongest layers in this method is biometric authentication that ensures the live presence of the customer for verification. Fraudsters cannot bypass these checks through any of their techniques. Due to the robustness of this technique, bank account scammers fear from the additional layers of security to verify identities and transactions. Identity theft, account takeover fraud, new account fraud, and data breaches are some of the criminal activities that have increased over time. Now, banks need a multi-tier security system to ensure the security of the customers as well as the organisation.

Get in touch with our experts and learn more about the digital ID verification system and biometric authentication.

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ICC Qatar is going to have a seminar on money laundering and terrorist financing

A Summary of Bank Scams and Frauds

Account Takeover Fraud

New Account Fraud

Identity Theft

Data Breach

Biometric Authentication – The Additional Security Layer

How will Multi-Tier Security Help Your Bank?

Conclusion

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.

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ICC Qatar is going to have a seminar on money laundering and terrorist financing

What is Multi-Tier Security?

A Summary of Bank Scams and Frauds

Account Takeover Fraud

New Account Fraud

Identity Theft

Data Breach

Biometric Authentication – The Additional Security Layer

How will Multi-Tier Security Help Your Bank?

Conclusion

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.