Remote Onboarding and Regulations Globally

Around the global financial service providers are regulated for the purposes of minimising fraud, reducing money laundering and limiting the funding of crime & terrorism.

Today, many of the financial markets have to comply with global regulations, such as the 5th EU Anti-Money Laundering Directive (read our guide on how to comply with 5AMLD) and Financial Action Task Force (FATF).

As part of these regulatory measures, financial institutions have to ensure they perform adequate identity verification checks (KYC) and keep track of sanctions and politically exposed persons. If financial institutions fail to comply with regulations they can receive heavy fines, as well as their brand reputation being affected. In 2019 fines exceeded $36 Billion in 2019.

As remote and digital account openings continue to rise, it becomes even harder for organisations to detect whether the provided identity documents truly belong to the customer, or in the case of fake and synthetic fraud, if the customer even exists. This growth also increases the risk of account takeover.

What measures can be taken? Organisations have turned to technology, in particular, automation to effectively scale their onboarding efforts whilst reducing risk and ensuring compliance. Combining our iDocufy solution, for instant document verification with BioMatch, for facial and liveness checks enables organisations to take the appropriate measures.

Due to the current crisis, in particular, the impact of social distancing many countries have recently updated their guidelines to promote digital account onboarding. As the FCA delays Secure Customer Authentication portion of PSD2 (read our guide to surviving PSD2 & SCA) to 14 September 2021 the implementation continues for banks and payment service providers. To comply with the SCA requires organisations to perform two-factor authentication for electronic payments, this includes a PIN or password sent to mobile device or biometrics. We believe additional guidelines on which technologies and workflows are deemed compliant for digital account openings are sure to follow.

Remote Onboarding Guidelines Around the World

The demand for complete and remote onboarding via web or mobile is increasing rapidly, especially during the global need for social distancing measures. Financial service providers that introduce new ways to help verify customers instantly online must ensure they follow KYC & AML regulations. While regulatory guidelines and technology are always changing, here are some ways organisations can onboard customers remotely across the globe.

Global Onboarding & AML Map
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