Know Your Business – What Does it Mean & How can it Protect Your Company?

Know Your Business – What Does it Mean & How can it Protect Your Company?

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Businesses that offer their services to other businesses, instead of individual consumers, have to be more vigilant in their customer onboarding processes. According to a survey, B2B merchants say 19% of all online purchase inquiries are attempts at online fraud. So, it has become important, in the current regulatory landscape, to secure your own interest before engaging with another business. According to the Australia Competition and Consumer Commission’s Targeting Scams reports that $91.4 million was lost to B2B invoice fraud in Australia last year. 

For this, Know Your Business practices come in handy as they help a company to verify the corporate information of their potential clients and personal information of the higher management handling the operations of that client company. Business verification for KYC or Customer Due diligence is essential to identify the ultimate beneficial ownership (UBO) structure.

What does Know Your Business Mean?

A typical Know Your Business practice enables corporate organizations to determine whether they are dealing with authentic business entities or shell companies that are just present on the paper. AML Checks for business and proper document verification is demanded by regulators, especially in developed countries when dealing with foreign entities. Guidelines such as Electronic Identity Verification (eIDV) and 4th AML directive from the European Union are some of the examples that dictate Know Your Business (KYB) laws to corporate entities.

On the other side of the pond, in the US, Customer Due Diligence measures are being dictated to be the norm to determine the true ownership of a business entity. Several KYC service providers offer different business verification services in order to collect business verification data. Some Identity verification services such as Shufti Pro can perform business verification in seconds with the help of its document verification services, identity verification of the top management through official identity documents and Anti Money Laundering Checks.

Similar to Know Your Customer (KYC), KYB service providers verify businesses by obtaining official commercial register data using APIs. By employing the registration number and jurisdiction code of a business, an efficient digital KYB service can collect confirmable information for the business.

From KYC to KYB

The Bank Secrecy Act (BSA), introduced in 1970, is the United States’ most important anti-money laundering regulation. Banks and other financial institutions must meet the compliance obligations it involves.  BSA gave birth to KYC and AML solutions to make sure that businesses verify the identities of their customers and have valid money laundering checks. From verifying customers, the need to verify businesses emerged. The fifth AMLD  has centralized the data of beneficiary owner data. This centralization brought ease to the table for KYC and KYB.  Businesses must know the other business they are dealing with. According to Repair Driver News, $6.7 million worth of business loans were allegedly obtained fraudulently by a California auto body shop owner. In another survey, Payment fraud represents 60% of B2B fraud losses in the last five years. The reason why it is very crucial in this era to know the company you are concluding business with is because if it is blacklisted, it can cause trouble for your business as well. So the company verification process is vital to know the business one is dealing with.  

How KYB protect Your Business Interests?

Based on Artificial Intelligence, Shufti Pro can determine not only the true identity of a verifying individual but can also check for the financial risk attached to that person with AML Compliance solutions. With Anti Money Laundering services from Shufti Pro, you can check the involvement or presence of any top official of your partnering company in any watchlist or financial risk database. Shufti Pro banks on its huge databank to perform Customer Due Diligence on behalf of its customers. Shufti Pro can perform AML Background checks in real-time from 1000+ Watchlists and 3000+ databases.

Know Your Customer services might be the main objective of any identity verification service such as Shufti Pro, but the same set of services can be used to check the authenticity of any corporate entity. These KYB services are greatly helpful for financial institutions handling funds of large customer base and corporate entities. Banks, brokerage firms and dealers of several investment institutions have to be especially vigilant against every business entity that wants to partner with them.

Automated ID verification for identifying B2B frauds 

Performing Know Your Business procedures can be hectic and might require specialized manual resources, but automated business verification solutions can come in handy. Automating verification processes is a powerful step towards fighting B2B frauds. On one hand, conducting business online brings in a greater volume of online scams but on the other hand, automating business verification practices provides robust solutions that can prevent possible fraud attempts worth millions of dollars. They are not only the perfect form of Regtech but they enable businesses to be secure from multi-million dollar fines that a regulator will easily slap on such institutions if found in breach of their regulations.

Read: The Urgency for Know Your Customer’s Customer (KYCC) in Businesses

Business Verification Service – Is it Worth Your Time?

Most of the banks have already tasted the slow agonizing pain of KYC verification for their customer onboarding, transaction authentication, and remote banking services. This is the reason why most of the large financial institutions that are in dire need of Know Your Business services or who want to determine the ultimate beneficial ownership (UBO) structure of the corporations they are dealing with, find it hard to trust a KYC service provider. But with Shufti Pro and its Artificial Intelligence (AI) based identity verification services, it becomes easier to perform business verifications in seconds. With Optical Character Recognition (OCR) and Global Business Verification, Shufti Pro becomes an ultimate resource for businesses for real-time identification and verification. Shufti Pro is available in 230 countries of the world with support available for 150 official languages. It has the ability to determine the true identity of a person with the help of authentic identity documents that include ID Cards, passports, and driving licenses.

With machine learning algorithms any attempt of forging identity documents or even ownership structure can easily be detected by Shufti Pro. Fake credentials or personal information provided about the top management, a common practice in the case of Shell companies with complex management structures, can also be easily traced by Shufti Pro. Nationality verification and Geolocation services of Shufti Pro enables companies to determine the true country of origin for international clients and whether a certain company has been incorporated at a certain tax haven or not.

So in order to collect reliable business verification data and perform impeccable business verification, try KYC and AML Compliance solutions from ShuftiPro. You can even sign up for 15 days of free trial at first in order to check the service standards by this global identity verification service

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KYC Verification Process – 3 Steps to Know Your Customer Compliance

KYC Verification Process – 3 Steps to Know Your Customer Compliance

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Do you know the three components of KYC?

The entire identity verification procedure encompasses a lot, however, the most important ones are:

  • Customer Identification Program (CIP)
  • Customer due diligence
  • Ongoing monitoring 

This blog post highlights the importance of the KYC process followed by 3 steps to the KYC verification process.


In this modern era, fraudsters and criminal groups have come up with enormous resourceful ways to fulfill their malicious purposes. It is a common practice of such criminal groups to misuse the systems of legitimate entities such as banks and other financial institutions, credit unions, e-commerce, etc in order to avail free services, commit frauds and convert ill-gotten gains into ‘clean money’. However, financial institutions mostly rely on the system of controls which aimed at collecting knowledge about customers. This is also known as ‘Know Your Customer (KYC)’. 

Similarly, another major issue is that businesses are knowingly or unknowingly used for money laundering activities which at the end turn out not to be compliant with global and local AML regulations. This dirty money is then used for terrorist financing, drug-related financing, and other criminal activities. The businesses that do not comply with the obligations of regulatory authorities are subjected to harsh penalties. AML compliance is, therefore, compulsory for businesses to consider at first hand.

Proactive security measures ensures complete elimination of any sort of fraud on an immediate basis. For instance, data breaches, identity theft, account takeover frauds, and money laundering and terrorist financing. 

A large number of fraudulent activities take place as a result of unauthorized access to online platforms. To combat this, banks and online businesses are required to perform KYC for each customer during the onboarding process. It not only serves the purpose of fraud prevention but also meets the regulatory obligations of KYC compliance.

With the news of Panama Paper leaks, the global KYC regulations have become more stringent. FinCEN that is the US regulatory authority, declared amendments in regulations to combat money laundering and extended the scope of customer identity verification. These changes were proposed as a result of loopholes that were residing in the framework of financial institutions. 

Impact of regulatory changes in financial sector

KYC Verification Process Steps

Just like the way traditional banking institutions were used to verify an identity, online KYC verification is performed. KYC verification process steps include;

Collection of Information

The first step in KYC verification involves the collection of personal information from an online user. The user is supposed to enter all the personal details at the time of account registration.

Ask the user to Upload an Evidence

After collecting information, in the second step, ask the user to upload a supporting piece of evidence as an identity proof. This helps the system verify that the user-entered information is not fake and holds authentic data.

Verification of information

Once the user uploads a document as proof, the document template is identified and examined against several checks. It is to ensure the uploaded document is not tampered or photoshopped. Once it’s validated, the data is extracted. There can be two ways to fetch the data from documents:

  1. Data extraction through OCR in which the system automatically extracts the data from the identity document and check the authenticity of the information.
  2. Data extraction without OCR in which the user manually enters the information and the IDV solution checks the user-entered information against the one present on the identity document. 

Check out the KYC Verification Process demo:

Customer Identification Program

In the KYC procedure, the Customer Identification Program (CIP) is the initial step. The identification of high-risk customers should be done beforehand to mitigate the risks. The mandate of CIP is to ensure that the entity performing a financial transaction is verified. This is necessary to curb money laundering, terrorist financing and other illegal criminal activities that disrupt the overall financial system. 

In CIP, financial institutions are supposed to collect the user information to open a bank account. This information includes;

  • Name
  • Address
  • DoB 
  • Identification number

After collecting this information, it is verified against supporting shreds of evidence that could be in the form of biometric verification or document verification. In addition to this, CIP includes risk assessment of customers and business accounts. This helps financial institutions build parameters against which each customer will be given a risk rating. KYC procedures, therefore, are predefined that contribute to the prevention of the frauds. At this point, businesses decide CDD and EDD procedures.

Customer Due Diligence

This is a process in which a customer’s information is screened against KYC protocols. In KYC compliance, this is the second step in which basic customer information is collected online in real-time. In CDD, the information collected includes;

  • Name
  • Address
  • Age
  • Date of birth

All this information is used to verify the onboarding customer. After this, the customer is assigned a rating as per credentials after the AML screening procedures and financial credibility. In case, if the customer ID is found in watchlists or PEP records, the risk is considered high and further Enhanced Due Diligence process is performed. 

CDD concludes that how much a customer profile is a risk for an institution. In private and offshore banking, CDD is supposed to be done more deeply to inspect any suspicious identities in the system. CDD should be a scalable method that could ultimately reveal the involvement of money laundering and terrorist funding in the financial system by identifying the identities. 

AML Screening

KYC compliance does not end here. One time customer verification does not conclude the inevitable credibility of that identity. Instead, a continuous identity screening should be performed in an institution to deter the risks of fraud from even the authorized entities. The ongoing financial transaction monitoring is important to identify suspicious transactions and unusual money flow in the financial system. 

For this, a risk mitigation strategy is defined that includes parameters against which monitoring needs to be performed. These indications include;

  • Transaction above the specified threshold
  • A large number of frequent transactions
  • Unusual/suspicious activities

Read more about ‘Indications of Money Laundering’:  Guide to Anti-money Laundering and Countering of Terrorist financing

Corporate KYC

Know Your Business or ‘KYB’ is a process that ensures verification of corporate entities or businesses you are dealing with. This is as important as KYC compliance. Business verification includes verification of Ultimate Beneficial Owners (UBOs), third-party businesses, and other corporate entities. KYB deters the risks associated with fraudulent business entities. Not only this, as per regulatory requirements and regulations about UBOs verification, KYB has become more than necessary to build a clean customer base as well as business relationships. 

It all adds up to

An efficient KYC solution is the need of every businesses sector. To comply with the changing KYC and AML requirements, organisations need a KYC solution that adequately follows all steps of KYC compliance. Shufti Pro is a one-stop solution for enterprises to cater to your KYC practices. We offer real-time KYC services with the global support of 3000+ documents and 150+ languages. Incorporating data protection standards, Shufti Pro is secure and reliable for quick customer onboarding.

Have more questions on how Shufti Pro can help you? Share your concerns with our team and get a solution as per your business needs!

AML & KYC Compliance – 5 Ways AI is Supporting the Fight Against Financial Crimes

AML & KYC Compliance – 5 Ways AI is Supporting the Fight Against Financial Crimes

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Reforming AML & KYC Compliance Structures for Financial Institutions

The capabilities of artificial intelligence (AI) are being pushed to unprecedented levels in the past few years. The banking and financial services sector has reaped extensive benefits from the transformation brought on about by AI in the landscape of IT solutions. The Anti Money Laundering (AML) and Know Your Customer or KYC compliance, in particular, has been made more dynamic and effective through AI-enabled systems. The financial sector produces huge amounts of data, which is what AI works best with. It can mine high volumes of data within seconds and produce risk-analysis of clients, that would otherwise take days or even weeks for the compliance staff to produce.

In the day and age of high connectivity, people expect their services to be fast and efficient. AI has proved to be monumentally adept at performing redundant tasks that require hundreds of man-hours. This has enabled the banking staff to focus their efforts towards more value-oriented tasks. With branches in AI including machine learning and natural language processing (NLP), financial institutes can transform their Client Lifecycle Management (CLM) by automating different procedures that require repetitive labour and are more prone to human error.

How has AI Transformed AML & KYC Compliance

Through NLP technology, AI can now process vast amounts of data provided in different languages which enhances the KYC process for banks. Different documents can be scanned through an automated system, which then reads and processes the information, allowing for a faster data entry process. Additionally, it can also go through external sources with increased efficiency. This allows banks to transform their entire client onboarding procedures to be faster and more dynamic.

The financial sector also has to adhere to a number of anti-money laundering (AML) regulations. AI is enabling financial institutions to implement systems that can perform a risk analysis of high-risk client profiles within seconds. By sifting through large volumes of data, machine learning algorithms are able to detect suspicious activity in client transactions, therefore identifying high-risk clients instantly. Other systems are able to track changes in the regulatory landscape around the world and provide prompt updates to the company. Banks now are also able to screen individual clients through global AML sanction lists through AML screening services provided by an AML and KYC solution provider like Shufti Pro.

Here are some of the ways AI is helping to improve the AML/KYC Compliance process;


  • Developing Comprehensive Risk-Profiles of Clients

Artificial intelligence has been able to digitise the process of evaluating client profiles. These systems can now provide banks with different levels of risk profiles of clients depending on their history and credit score. The profiles can be classified as high, low or medium risk according to the client details. This has made the process of enhanced due diligence (EDD) more efficient for banks, allowing to screen out high-risk individuals.

  • Establishing Ultimate Beneficial Ownership

Under the recent AML and counter-terrorism financing directives, institutions like FATF have introduced UBO legislation, wherein financial institutes are required to establish the ultimate ownership of assets. Compliance departments are required to go through complex data in order to sift through shareholders, beneficial owners, directors and other associates linked to a business. AI has enabled the compliance staff to establish UBO for different clients through enhanced systems. It can read and process vast quantities of data wherein it is able to produce comprehensive risk profiles of clients. As AI technologies are progressing rapidly, these systems will continue to gain consequence over the coming years.

  • AML Screening

Financial institutes around the globe are increasing focus on screening clients through an AML screening process, thus improving the AML and KYC compliance process. Outdated systems have been known to produce an unusually high number of false positives, thus piling up unnecessary work for compliance managers. A KYC solution like Shufti Pro can provide real-time screening of clients through global AML watchlists through an AI-enabled system.

  • Faster Client Onboarding Process

As people are increasingly coming to rely on technology, and are getting used to services that are easily accessible, banks are trying to keep up with the tech revolution. By installing AI-powered systems, client onboarding procedures can be made more efficient as well as effective. Such systems have lent increased capability to banking systems and compliance processes, in particular. Advanced monitoring through AI and real-time screening and alerts can mould the onboarding of clients to be faster than ever before.

  • Keeping Up-to-Date With Compliance Regulations

Systems in AI like machine learning algorithms can detect patterns in data within seconds. The AML and KYC requirements around the world are constantly changing. Regulators dole out new laws and requirements every year in an effort to curb money laundering and financial crimes. This makes the tasks of a compliance team more complicated and dynamic. AI is able to analyse and detect patterns in data, thus keeping compliance requirements up to date.

With Shufti Pro as a KYC service provider, banks and financial institutes can revolutionise their AML and KYC compliance procedures. It provides digital KYC through document verification, facial biometric authentication and AML screening procedures. By implementing KYC as a service, banks do not have to invest separately in developing AI solutions from scratch.

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4 Know Your Customer (KYC) Strategies to adopt in 2019

4 Know Your Customer (KYC) Strategies to adopt in 2019

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Digital fraud haunted the cyberspace in 2018 with the majority of online frauds originating from either new accounts created through stolen identities (32%) or through account takeover of existing user accounts (23%). This created a nuisance for online businesses as customers cried foul and lashed out on digital companies for their lax security measures that failed to ensure the true identity of incoming users. With payment fraud recorded at 27%, online businesses were not also particularly secure from digital frauds eating into their cyber revenues. Identity verification services and KYC authentication seemed to be the logical answer to fight online frauds but online businesses were skeptical about the utlity of such services.

But surely after an ever-increasing barrage of digital fraud incidents, companies using digital channels to attract larger clientele will start taking KYC services much more seriously in 2019. Here are the 4 Know your customer strategies that must be at the forefront of digital fraud prevention for every business that wants to fend off fraudsters.

1.Hybrid KYC Options

It is highly important that instead of just opting for only one form of KYC solution, online businesses integrate various identity verification services to make sure that only authentic users are able to pass through know your customer process. Adapting to new verification standards is never hard for online fraudsters and scammers. Synthetic ID documents are the living proof of this fact. So the businesses that want to not lose any more revenue to users with fake credentials must move forward from simple document verification and the need for authentic ID cards for new customers.

Choose a KYC solution provider that supports a hybrid verification approach. For example, an ideal KYC service should not only perform biometric verification with the help of Facial recognition software but must also cross-check the unique facial features of a verifying person with the image present on the identity document, after checking the authenticity of the identity document. This approach will virtually make it impossible for an identity thief or synthetic identity holder to register ever again for a service provided by any business.

2. Swift Processing of KYC requests

Identity verification services are surely an effective way to prevent online frauds and thwart attempts to register with synthetic identities but it should not become a headache for authentic users. They should not be made victims for the vigilance against account takeover practices. Any Know your customer verification that takes more than a few minutes is a counter-productive and can make an online business lose customers as well. So any company that wants to integrate a reliable user Identification service, must make sure that the processing time for each verification request must be limited to a few minutes and should not exceed more than 5 minutes, regardless of the fact that which verification is being used to identify incoming clients.

Performing time-consuming user verification on the cost of loyal customers can never turn out to be a beneficial business practice, no matter how top of the line service a business promises to provide.

3. Collect Unique Consent from Users

Most of 2018 saw a tug of war between the online businesses and their consumers, where several instances were reported of customers complaining to never have used service but the support department telling them it was their exact credentials that were used to access and pay for the services. Cashback requests were mostly denied with customer trust being breached on several occasions.

Read: Benefits of KYC services for Money Services Operators

Online businesses can turn the wave in 2019 by collecting a verified consent from their customers. It can be in the form of some customized text or the customer showing their face along with their credit/debit cards. Phone verification or address verification are also viable options to collect consent from potential customers.

4. Try Handwritten Note Verification

Handwritten Note verification can serve as the ultimate form of KYC verification in 2019 with online businesses asking any kind of text to be written by a verifying user and send its picture for identity verification. It can either be a random code, the date and time at the time of verification, name of verifying customer with their date of birth or may be the address of end-user for sending items that they have just ordered on an online shopping website. Surely, the sky is the limit with the customization offered by a handwritten note as a source of unique identity verification service. As mentioned in the first point, online businesses can even use a handwritten note in conjunction with the face recognition service or authentic identity document for verifying the identity of an incoming user.

Handwritten note verificationAny business that wants to adopt any or all of the above 4 Know your customer strategies will fine Shufti Pro as a perfect tool to fight online scams, synthetic identities and identity frauds in 2019. It is an AI-based SaaS product using machine learning, liveness detection and OCR technology to authenticate the true identity of cyber users. Available in 230 countries of the world and with support for 150 languages, Shufti Pro is an ideal KYC service provider on a global scale.

Shufti Pro offers 7 days free trial of its services for all its customers that want to check the real-time verification results provided by this state of the art user verification service. So if you want to adopt a highly scalable and customizable identity verification service to reduce the risk of registering users with fake identities, then Shufti Pro is the right choice for your online business.

Initial Art Offering – Everything you need to know about it

Initial Art Offering – Everything you need to know about it

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Initial Art offering is an innovative way to support artists and their brilliant art without worrying about copyright infringements, revenue sharing headaches and other marketing-based nuances that an artist has to bear in this digital age. Initial Art Offering empowers artists, consumer and their existing form of exchange on the digital art market. Quality of transmitted art pieces in appropriate file formats also becomes easier by platforms using initial art offering, ensuring top quality art products for the consumers who are willing to pay an appropriate price for an artwork. Cryptocurrency and blockchain provide the much-needed security and privacy to the digital art world, going forward into the 21st century.

Initial Art Offering – An Introduction

Much like an Initial Public Offering (IPO) and Initial Coin Offering (ICO), Initial Art Offering (IAO) raises money for digital artworks and investors are provided special access to artworks, ensuring true value of money. Like Initial Coin Offerings (ICOs), IAOs are basically conducted for blockchain projects where special access ensures transparency for consumers and privacy for digital artists.

Blockchain Digital Art Platforms

Blockchain-based Art platforms conducting IAO are a far better alternative to a fully centralized service where the platform would store, exchange and sell the digital artworks. But the issue of ownership was wide open with such digital platforms, thus blockchain was utilized by entrepreneurs as it provided original owners of digital artworks proprietary rights even after being shared with prospective consumers.

Most of the blockchain based digital art sharing platforms offering IAOs work on a peer to peer sharing as long as the exchanging partners are using preferred cryptocurrency wallet for exchange.

These kinds of blockchain based art platforms are also important for digitization of pre-existing physical artworks as well. Unique pathways for sharing of such artworks create a sense of ownership for the creators as well as the consumers who pay for these art pieces, as there will be not the slightest chance of forged or doctored artworks and only original artwork will be shared.

Digital Growth Security

Digital arena might have been instrumental in the growth of many fields of life but art was one field where the potential for growth was not fully realized. The innate feature of the internet that made it de-centralized, easy to share and hackability was one of the major reasons why internet could not contribute in a positive fashion towards the digital growth of artworks. Art and blockchain is a powerful combination that can allow internet and digital resources in the long-awaited growth of arts through technology.  Initial Art Offering provides creative freedom to the artists to be more expressive and create an original piece of art that a credible collector of arts can really back without worrying about spending money on a fake or doctored piece of art.

Blockchain provides the much-needed transparency to otherwise chaotic cyberspace. It can easily be said that blockchain offers all the positive attributes of the digital world, without the cloud of anonymity. Global outreach of consumer for authentic art pieces was clearly matched by platforms such as Art Pro. It is one such platform that utilized the advantages offered by Blockchain to educated consumers not only about their digital rights but created an openness about the condition and pricing of artworks. Consumer interest was not the only goal that platforms like Art Pro wanted to protect but they wanted artists to achieve unprecedented growth and revenue for their error-free and authentic artworks. Dozens of artists showed interest in such ventures and preferred such a platform that valued their talent, understood its worth and connected them with true consumers of art.

KYC verification for Blockchain based Art

Consumers needed to trust a platform before they can engage with it to buy authentic work of arts. Unfortunately, blockchain was considered a black hole of information whose limited access feature threatened many. A reliable KYC verification could help restore the trust of consumers over the platform as well as help address any compliance related issues that a global platform like Art Pro might have to encounter. That is when Shufti Pro was selected by Art Pro due to its superior service pack that offered KYC verification and AML Compliance solution for a global audience.

Using Artificial Intelligence, Shufti Pro was able to verify the identity of potential buyers that wanted to get registered on Art Pro platform. Initial Art Offerings achieved regulatory compliance through AML checks offered by Shufti Pro that takes helps form 3000 databases maintained by international financial watchdogs. 1000 watch list and sanction list are also part of the huge databank maintained by Shufti Pro for its AML compliance solution. Facial verification, document verification, and address verification services from Shufti Pro provided a unique opportunity to mix transparency of KYC with the security of Blockchain.

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Catch a Live KYC Demo of Shufti Pro at Web Summit 2018!

Catch a Live KYC Demo of Shufti Pro at Web Summit 2018!

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BATH, UK – (October 4th, 2018) Shufti Pro is really excited to be a part of the upcoming Web Summit 2018 that will be held from November 5-8, in Lisbon, Portugal. Hailed as “The Largest Tech Conference in the World”, Web Summit 2018 is the place to be if you are interested in the latest trends of the tech world. Shufti Pro will be showcasing its various solutions and services related to Identity verification, KYC and AML Compliance. It will be a perfect platform to get acquainted with new features and services launched by Shufti Pro in recent months. Services like Biometric Consent Verification and integration of OCR-based data extraction technology will be highlights of this AI-run SaaS product at the Web Summit this fall.

Last year, more than 18 million people tuned in to Facebook to watch the live streaming of Web Summit. This year, more than 2500 media outlets will be attending the Web Summit from more than 100 countries. This 4-day huddle – called “A grand conclave of tech industry’s high priests” by The New York Times – will be held in Altic Arena of Lisbon that is among the largest indoor arenas in the European Union.

Shufti Pro is no stranger to such high-octane events as it has previously attended various other conferences of similar nature in different parts of the world. With stand out features like Universal Language Support and Hosted Verification Page, Shufti Pro has already attracted attention from major businesses around the globe. Shufti Pro will be giving live demos of its real-time verification results for KYC verification and AML screening at Web Summit 2018. We invite you to visit our stall and see for yourself how the next chapter in identity verification services looks, as we introduce the world to a future where online marketplace will be free of online frauds, identity thefts, unwanted financial risk and scamming individuals. Take a trial run of how AML checks by Shufti Pro work, with the help of a large data bank. A Data bank, that contains data from 1000 Watchlists, FATF defined PEPs and +3000 databases maintained by world’s largest watchdogs like OFAC, ASIC, FSA, and FCA to name a few. You can even witness our consent verification service in action at Web Summit 2018 as Shufti Pro’s bespoke Artificial Intelligence identifies and verifies your hand-written consent note.

Pay us a visit and our representatives will be happy to walk you through the process of effortlessly integrating Shufti Pro with your existing applications, software and web portals through our RESTful API, Android and iOS SDKs.

We look forward to meeting you at the biggest tech conference of the year. 

You can also send us an email to book a demo for yourself at Web Summit 2018. Feel free to reach us at: [email protected]

Benefits of KYC services for Money Services Operators

Benefits of KYC services for Money Services Operators

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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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Document Verification Services for a Secure Freelance Platform

Document Verification Services for a Secure Freelance Platform

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Picture this you have recently started a freelance website you have marketed it properly and followed through on all steps to make it popular. It’s going good, you have a decent number of people posting projects and a decent number of freelancers who are able to complete them. You really haven’t had any problems, you are the middle man and you just take a small commission from both the project owner and the freelancer. The entire system is automated so you really don’t have to do a lot. Then something like this happens — you see a chargeback and its for quite an amount. You search out what the issue is and find that a freelancer has not completed his task and has also taken some amount in advance. You try contacting the freelancer to get an update but the number is turned off and you haven’t received responses to your email. You take it as a one off and refund the project owner and don’t really take any action except for disabling the freelancers account. Guess what a few weeks later you get multiple chargebacks, all for the reason that the work had not been completed. All of the freelancers had taken an amount in advance. You are worried now, the previous project owner who requested the chargeback was quite angry and did not post any other projects. You also tried contacting the freelancers but as before there was no response. Your website is getting a bad repute online and the number of tasks being posted has declined. You think about stopping the advance payment option, but argue the fact that good resources as well as certain tasks require some amount in advance and plus you made your entire marketing campaign around this. You frantically search the web for a solution, you come across an article called “ Document Verification for a Secure Freelance Platform” You start reading it and as you go through it you realise what’s been happening with your website is freelance fraud. With tears of joy in your eyes you know your prayer’s have been answered and you say to yourself “I have found the solution to my problems…“

Deterring Freelance Fraud with Document Verification

Although the above paragraph is about a hypothetical situation but still the threat is very much real, it is something that can and has happened in one form or another. So the question arises how can one prevent such a fraud from ever occurring? To answer that we need to see what was the cause for the freelance fraud in the first place. In the hypothetical case above the freelancer site probably had a registration process that a freelancer was required to fill out plus they have to make a profile detailing their expertise. That is pretty standard but there is no way to verify that the person claiming to be that freelancer is actually them, no document verification to ensure their credentials are true and real. Given that in this platform the freelancer was allowed to take something in advance it set the stage for someone to exploit this feature. The person or people involved in this fraud probably created false identities knowing that there is no check and uploaded impressive credentials and mentioned great skills. The idea itself was great and would likely attract the best of the best to apply as freelancers. This in turn would attract people or organisations who wish to get their tasks done by highly-skilled workers. The only drawback was, it was not thought through properly and did not have a deterrent to avoid this kind of fraud. The deterrent in this case could have been a 3rd-party digital KYC or an identity verification service — something that could verify the credentials and documents to prove that the freelancer is truly who they say they are.  Later in the article we’ll look at a solution and the features such a solution have.

Freelance Scam – Another Situation

Before we go on and discuss the solution to this problem it would be good to mention the same could also work to prevent another type of Freelance Scam. This would be the opposite of what happened in the hypothetical situation above, it could be quite possible that the platform itself that is providing the freelance service turns out to be a scam. This would not only affect the freelancer but also the company or individual providing the projects. Supposing that the freelance service offers an escrow meaning they keep the money until the task is completed. What if they in the end after getting all the money do a disappearing act similar to the one’s that ICOs are pulling off? What would be something that would prove that they are the real deal and not some scam? The answer is that they probably would have invested in some third party service that ensures they are compliant with KYC rules and regulations and that they are serious about who’s joining up with them. In an absence of sound Document Verification mechanism; your platform is always at risk.

So is Document Verification by a Third-Party the Answer?

The answer is a big YES, the fact that nothing adds credibility to one business or in this case freelance platform is the investment they put in to it; it shows the company is against freelance scams. Not only that but since everyone who is on boarding as a freelancer is verified through their documents. The documents are sent over to the third-party verifier and checked for signs of tampering and forgery. Their pictures are matched with those on their ID cards and checked for irregularities. The great part is that verifications can be done live using a webcam or by submission documents. The whole process takes less than a minute. So they know if they try to pull a fast one they can be highlighted and criminally prosecuted as well.  This is one of the most effective deterrents of freelance fraud.

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KYC for Banks: Reducing financial risk with a perfect digital solution

KYC for Banks: Reducing financial risk with a perfect digital solution

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The banking sector has to tread a very balanced path between compliance regulations and customer friendly business practices. At the same time, they have to safeguard their customers from online frauds and scams as well because the recent studies have revealed that online banking frauds are one of the biggest sources of digital scams. Not only conventional banking services but accounts attached to its various services such as credit card accounts are also at great risk of being exposed to digital bandits. Only KYC for Banks has the potential to safeguard interests of both the banking sector and their millions of clients spread across the world.

The expense of online identity theft directed towards banking services can be understood by the simple fact that last year witnessed more than 30% increase in credit card account takeover, resulting into millions being lost to cybercriminals. Integration of online banking services has created put both banks and their customers at risk of becoming victims of digital identity theft and online frauds. Banks can opt for even the most secure system that is considered hard to breach but the reality of the fact will stand out that hackers and cyber bandits will always find a way to circumvent even the hardest to crack security protocols. Only online identity verification services based on the KYC authentication principle has the potential to secure internet-based banking activities.

How Can an Online KYC for Banks Solution Be Useful?

Banks and other financial institutions already have a Know Your Customer solution implemented when a customer walks in and asks to open an account. The bank representative then takes down all the required information from the customer, including job/business, sources of income. The bank also asks for proof of the provided the form of documents and copies of ID. When this is done as online services it gets a bit tricky given that the person applying is not physically present and the documents submitted can easily be forged ones. Hence, a smart KYC for banks solution is required that can actually verify that the provided documents as well as the person are the real deal. The smart online KYC solution is usually provided by 3rd party service providers. The system is based on an advanced AI that carries out all the verifications and scanning tasks and sometimes HI (Human Intelligence) is also implemented to authenticate the given result. If we look at it this system, it can prevent the use of a stolen identity as it will verify the person as well as check the documents for tampering and forgery. Given the above hypothetical situation, such a system would have been quite useful had the bank opted for it.

Well then, How Does the Smart KYC For Banks Work?

The online KYC for banks system uses the Internet, a webcam or a smartphone camera to carry out the verifications. Let’s take for example online services for opening a bank account. When a customer has filled out all the requirements and submitted the documents. The system kicks in and asks the customer to face his webcam. The system checks for such things as excessive make up, masks or the presentation of a picture instead of a live person. If the customer does not have a webcam, the system can utilize the camera of their smartphone to carry out the verification process. Then the person is asked to show their ID, the ID is checked for signs of tampering or forgery through hologram checking. The person is asked to focus on the picture on the card, the name, DOB and address. The face on the picture is matched with that of the customer and the details with that of the provided ones. The system at the same time does a background check of the person against global watchlists regarding terrorist organisations and money laundering. If everything is clear the system lets the customer proceed otherwise the process is halted.

KYC Verification – The Technology

Although there are many KYC service provider offering online identity verification services for a range of industries, the banking sector needs to rely only on a top of the line KYC for banks service, as the stakes are too high to be taken lightly. The technology used for ID verification and other KYC services, thus, have a vital role to play in the selection of a preferred KYC service provider. An ideal KYC for banks solution not only have to provide omni-channel support but must have flawless technology to quickly and correctly identify an incoming banking customer.

Shufti Pro is an AI-based SaaS product which means that not only the integration of identity verification services with any existing system will be totally hassle-free but the verification results provided for KYC for banks solution will be able to detect any attempt of identity fraud or identity theft in a matter of few seconds. Banks looking for a KYC service provider can take help from Shufti Pro to verify the identity of an incoming user with the help of:

  • Face Recognition
  • ID Verification
  • Address Verification
  • Document Verification
  • Phone Verification / 2 Factor Authentication
  • Handwritten Note Verification

Machine learning algorithm, liveness detection, template matching, OCR, and many other technologies are used by Artificial Intelligence system of Shufti Pro to detect any aspect of the identity of an incoming user.

Shufti Pro even offers 7 days free trial for all of its KYC services and its AML solution will be even best suited for banks that want to get rid of customers having substantial financial risk attached to them. AML background checks from Shufti Pro track the identity of an end-user against 1000 watchlists and 3000 databases of financial risk entities issued by national and international regulators.

So, if you are looking for a reliable identity verification service that can provide a top of the line KYC for banks solution, then you must give Shufti Pro a chance to prove its worth for your banking operations.

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