As businesses continue to globalise, effective anti-money laundering processes are an increasing priority for companies across the world. Having the right systems in place can not only safeguard your assets but also protect you from falling foul of the law – as regulation continues to evolve.
A key part of protecting your company from money laundering activity is implementing vigorous know your customer (KYC) practices. However, keeping abreast of local and international regulation, and monitoring constantly updated watch lists can be a heavy drain on both company time and resources. Indeed, many firms are also obliged by the Financial Conduct Authority to put in place additional policies and procedures to mitigate their money laundering risk. Those who fail to regulate themselves effectively can be subject to large fines as well as criminal prosecution. Which is why it’s crucial to make sure your anti-money laundering (aml) practices are both rigorous and robust.
However, as is the nature of the technology industry, a number of software developers have seized on this growing segment of the market to provide streamlining software services that recognise and satisfy the need for a global approach.
For example, Callcredit, which specialises in fraud protection and customer verification services, recently partnered with Trulioo to use its online identity verification service, GlobalGateway, to deliver a global aml product.
By combining complementary data and technology, this new platform will use electronic identity verification services to deliver fraud prevention solutions for businesses around the world. Indeed, such is the global scale of its reach that it has the ability to cover more than three billion people in over 40 countries.
Companies that operate internationally are arguably most vulnerable to money laundering. Covering all bases, from overarching global regulation to unique aspects of local law, can be a challenge. Formerly, this requirement most affected financial firms who, dealing with large volumes of transactions, needed to implement effective safeguarding systems. However, as the nature of commerce and investment continues to change, Stephen Ufford, Founder and CEO of Trulioo, highlights why these new technologies offer a crucial platform for businesses of all sizes and sectors:
“As the world transforms into one global marketplace, regulatory compliance requirements have become increasingly strict,” he says. “Identity verification has become a vital part of every smart business’s operations, especially with the growing popularity of peer-to-peer marketplaces where both buyers and sellers taking part in the sharing economy want assurance that the person they’re dealing with is who they say they are. It’s no longer just a necessity for banks, financial institutions and payment providers, but for everyone transacting online.”
While each technology platform’s offering differs, it’s now easier – and arguably safer – to find a service that can verify customers’ identities in real time, monitor transactions, ensure regulatory compliance and create transactional alerts. However, more than that, these platforms are also effectively offshoring a number of processes and functions that can save businesses money and resources. For example, it’s now commonplace for some of these technologies to store documentation, deliver aml training and disseminate updated policies and procedures. So companies can rest assured that, while the nature of aml requirements continue to evolve, technology is hot on its heels.
With a database of over 6 million businesses, our XSeption tool trawls through data and identifies peculiar behaviour based on a complex algorithm designed to catch fraudsters out.