money operators kyc aml

Benefits of KYC services for Money Services Operators

Money service operators are at the forefront of international financial system as they help with the transfer of funds from one currency into another and from one territory to another. With international monetary regime adopting strict regulatory measures, KYC services are being sorted out by major money services operators to safeguard against  any substantially huge penalties. Customers utilising the services from money service operators are subjected to new procedures in which they are being asked to provide their identity documents in order to ensure that international trade of funds is not being hijacked by financial criminals. Financial channels used by money services operators are being verified to discourage the use of these channels for money laundering or any other monetary crime.

Hazards for Money Services Operators

With conventional means of international banking requiring detailed background checks and formal documentations, money services operators have been traditionally considered a more convenient option either for receiving remittances from foreign countries or for exchanging local currencies into international currencies or vice versa. But the basic operation of money service operators is also parallelled by traditional and shaddy money transfer services like Hawala and Hundi.

Authorities and financial regulators are always watchful regarding the business of money services operators because sometimes, even the lower management of such organizations is found involved in illegal transfer of funds using not the official channels to transmit funds but the aforementioned illegal routes of money transfer.

Recently, money services operators are also becoming the focal entities to get paid for virtual currencies. Lot of investors and cryptocurrency enthusiasts have cashed out their virtual assets using money services operators as the regulatory parameters on these Money Services Operators are relatively lenient as compared to conventional financial and banking organizations. This also creates an immediate need on part of Money services operators to introduce much more vigilant KYC operations in order to ensure that their services are not being used by online bandits to launder money or perform terror funding. There is also a great chance that financial regulators might also clamp down on Money services operators that are currently handing out money to customers in exchange for virtual currencies without performing due diligence or without collecting verifiable credentials from these customers. It can be said without any shred of doubt that only the Money Services Operators that have functional KYC services implemented, especially for transactioning funds for virtual currencies will be secure from huge regulatory fines that are inevitable in near future.

KYC services for Money Services Operators

Shufti Pro is a unique Identity verification SaaS product that has combined the virtues of Artificial Intelligence and Human Intelligence. Money service operators from around the globe can easily utilise KYC services from Shufti Pro as its machine learning algorithms will safeguard them from huge regulatory fines. With an ability to verify identity documents from any part of the globe and published in any language of the world, Shufti Pro becomes the ultimate tool in the hands of money service operators.

Customer due diligence can be performed in real time as Shufti Pro takes 30-60 seconds to verify identity documents. Transactions received from any part of the world can be validated by KYC services of Shufti Pro.

Shufti Pro is easily integratable with pre-existing systems and applications and there is no need for third party plugins. It means that there is hardly going to be any downtime to integrate Shufti Pro with already present transactional modules of money service operators. As a PCI compliant solution, security of data is of no concern with Shufti Pro and GDPR compliance will make sure that the personal data of users is safe for auditing, in case financial regulators come knocking up. KYC services from Shufti Pro are a perfect choice for money service operators who understand the value of customer due diligence and want to conduct a responsible money operations in their designated territories.

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secure online gaming

Secure Online Gaming with Digital KYC

Here is a scenario that shows the importance of having a digital KYC system integrated with your business especially when you are dealing with money in one way or another. People might think that a business such as online gaming site does not need such a solution

The Drug Dealer:

Ok here’s a situation, you’re a drug dealer and you have just delivered shipment as per agreement with your business partner in another city. You had already taken half of the amount when the deal went through and your business partner brought the amount with him. Now you want to get the remaining money but in a way that will be inconspicuous. As you don’t want to be caught in a money laundering case as it will open up the way for the law to pick up on the rest of your dealings. So what do you do? You’re trying to come with an easy way. To get inspiration you surf the Internet as you are reading an article a pop-up appears — its an ad for an online casino. Suddenly the light bulb in your head turns on and you call your business partner and ask him to a one-on-one blackjack game…

The Online Casino Owner:

The other side… You have always found luck to be on your side, you lived for betting and gambling was your career. After gaining much success you decided to open up your own Casino, but not a physical but an online one. Here you would offer multiple online games for the people keeping your percentage you also offered one-on-one games. Everyday was a good day since the house is mostly in a win-win situation. All seems good until one day the FBI walks into your office and straight up to and tells you that they need access to your player data… Seems your luck ran out.

The FBI:

The FBI’s story, one of our agents was working undercover with a drug dealer during background checks we found out that he had connections with some terrorist organisations. He recently received a shipment of drugs and forwarded them. We don’t know exactly how he is transferring the payments until now, our agent found out that he loves gambling and accesses a site, through which he gambles with his business partners. They have tracked down the location and our agents are on the way to get the required data…

The Consequences:

The online casino owner got in a lot of trouble he did not have any digital KYC system integrated into his online gaming service but since he cooperated the penalty was lessened. The drug dealer and his associates were shut down and brought to the law and luckily were stopped before they could initiate any terrorist funding.

The Importance of Digital KYC and Background Checks

As we can see in the story above, had the casino owner implemented a KYC and AML (Anti Money Laundering) solution it would have saved him a lot of trouble. The system would have carried out comprehensive background checks identifying possible threats and allowing the owner to take action accordingly. The online gaming industry is a hotspot for money laundering although there are certain policies governing the industry the chance is still there that it could be used for terrorist funding.

More Scenarios Highlighting the Importance of Digital KYC

Identity theft protection has become a necessary requirement for the online gaming industry. Many a times, players are invited to buy add-ons and perks in the online games, for which they are required to make payment using credit/debit cards. This means that validation of online transactions is in order through digital KYC verification of the players who wish to make purchases.

Fraud protection services must be employed by online gaming companies so losses through identity frauds and sham customers looking to dupe their way through the purchases are kept to the minimum. Gaming sites may also run into problems such as registration of underage individuals, which can become a headache when the regulatory authorities investigate the company’s proceedings and customers. Background checks are the way to go when it comes to solving problems like fake ages and cards.

The online gaming industry is evolving rapidly around the world and expanding with each passing day. Gaming sites have improved tremendously in terms of user experience and now, they can make it more secure by enhancing the membership security protocols. Providing different gaming sites the ease of accurate digital ID verification will increase their revenue manifold.

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Secure Travel Experience

Verify ID For a Secure Travel Experience

Since we are using the Internet for a great many things including shopping to online booking of flights and hotel rooms. The need for a system that would ensure that the people making the bookings are actually who they say they are is important.  The system should verify ID online. The following hypothetical situation that is based on an actual process that is carried out by TSA will elaborate our point.

Picture this: You plan on visiting your parents this Christmas and New Year’s. Since they live in another city you buy your ticket in advance. Buying the ticket in advance saves you money as the earlier you buy it  from the flight date the cheaper it is. When the time comes for your flight, you leave for the airport and there you reach the check-in counter and over there they just check your id and tag your baggage and let you enter the waiting lounge. When you look back some of the passengers’ ID’s, baggage and they themselves were being checked. You think to yourself that it must be your lucky day. You weren’t really sure if you would extend your leave so you didn’t buy a return ticket. When the time came for you to go back, you purchase a ticket online a couple of hour before the flight. When you reach the airport’s check-in counter. The staff ask for your ID, another person asks you to show your luggage and let them inspect it. They also give you a pat-down and ask you questions as to why you’re going and why you were here. After finally getting satisfactory answers from you they allow you to go to the waiting lounge. As you walk towards the lounge you look back and notice that a person just gave his ID got his bag tagged and was allowed to go, just like you did when you were coming to this city. You go and sit down and start wondering why this happened, the guy who was behind you asks if he can sit on the seat next to you. You allow him. Your curiosity gets the best of you and you ask him why they just let him go without any checking? Do they check randomly? He tells you that if you buy a ticket in advance they verify your id and do background checks beforehand so that they don’t have to do a check as they just did with you. You thank him for explaining the situation to you. You wonder why they don’t have access to a live verification system that would carry out a background check in real time.

Why Should we Verify ID in Remote Hotel Service?

Online credit card fraud prevention is needed in online booking. There is no way an online booking website can track a fraudulent transaction without a verification system. So if you are a hotel and are looking to facilitate its customers  with the ease of online purchasing and booking, then you need a more secure way to go about it. Frauds and identity thefts not only breach the security aspect of your business but also cause you a major loss in reputation. So if you’re offering a remote hotel service then you need to have some system that can make sure that the original owner is making the credit card transaction. This can easily be done with an online KYC (Know Your Customer) solution that can be integrated with your website to verify ID.

Verify ID to Avoid Chargebacks

Besides the remote hotel service, KYC solutions are essential for the travel industry in general.  Airline and transport services that allow for online booking are all susceptible to chargebacks due to the use of stolen credit cards. The chance of a friendly fraud is also a reality. In order to counter that, the KYC solution offers proof of purchase as well as identification of the individual.

How do solutions that verify ID work?

The best possible solution for the corporate and government sector is to make use of an e-KYC solution that can help them reduce security threats. This can be simply done by integrating the SaaS, within your business website or application. With the use of the system’s state-of-the-art business verification services, the risks involved can be decreased majorly. Running on an advanced AI system, it utilises the Internet, webcam or smartphone camera to carry out online real time process to verify ID. When a person is doing a booking, after he’s filled in the required information the AI takes over. The person is asked to face the camera while the AI checks for anything that would indicate that the person is altering or hiding his face. Such as heavy makeup, masks, or using a picture. The Ai is smart enough to take into account wearing of jewellery and glasses as well as changes in facial hair and hairstyles. Then the individual is asked to present their ID and to focus on the picture, Name, DOB, and number (if applicable). The AI then matches the picture with the person’s face and the data with the one provided by the person in the initial form. Once  everything is verified and turns out clear. The system proceeds with the booking. Incase of a false outcome the booking is stopped. The entire verification session is recorded and takes less than a minute. In general, not only will it save your valuable time but also help you get rid of carbon based storage, i.e. no manual or paper work. The chances of data loss will also be minimised.

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