4 min read · Dec 7, 2023
In today’s digital age, identity verification is crucial for financial and non-financial businesses worldwide. Companies and organisations of different countries comply with regulations according to their industry’s compliance to stay compliant and ensure smooth client onboarding. These laws and regulations are implemented to control financial crimes, minimise fraud, and maintain the decorum of the country. Countries like the UK, USA, Canada, and European Union have stringent regulations; financial companies comply with these regulations to operate their businesses smoothly.
Some financial fraud statistics explain why identity verification is essential for economic and non-financial businesses.
- Vietnam leads the region in deep fake identity fraud, accounting for 25.3% of the total cases, with Japan following closely at 23.4%. Australia, China, and Bangladesh contribute 9.2%, 7.7%, and 5.1%, respectively. These figures are based on an analysis of over two million fraud attempts spanning 224 countries and territories across 28 industries.
- Binance has admitted guilt to charges of money laundering, unlicensed money transmission, and sanctions violations. Changpeng Zhao, the founder and CEO, has agreed to a $4.3 billion fine. The exchange neglected to enforce Know Your Customer (KYC) protocols, monitor transactions, and report suspicious activities to FinCEN. Binance’s lax controls facilitated the routing of payments by terrorists, cybercriminals, and child abusers for an extended period.
- The Financial Conduct Authority (FCA) in the United Kingdom has imposed a fine of £6.47 million (equivalent to $7.9 million) on ADM Investor Services International Limited, a commodities services broker. This penalty was imposed due to the company’s “inadequate” anti-money laundering systems and controls.
Money laundering, terrorist financing, illicit financing, and other illegal activities are considered severe crimes for any country worldwide, spoiling the company’s reputation in its business. Therefore, identity verification plays a significant role in a successful business in the digital landscape. It helps to authenticate the user and business identities securely and accurately. According to the country, it allows companies and organisations to recognize the identities of those involved in financial fraud and even helps them know about politically exposed persons (PEPs).
All financial businesses, like banks, financial institutions, cryptocurrency, fintech, insurance, online gaming, trading, e-commerce, and others, perform KYC to know their authentic identity before doing business transactions with them. There are various identity verification companies, but some of them are reliable and trusted, as they are:
IDMERIT: IDMERIT is a global identity verification company that helps companies and organisations in every country identify and verify business identities, mitigate fraud, and prevent financial crimes for safe business. IDMERIT provides a fully automated identity verification API, supports multiple languages, and verifies identities within seconds. They have vast product lines for identity verification and offer comprehensive solutions to business needs. They are GDPR, HIPAA, and CCPA-compliant and active on the privacy shield. IDMERIT can access a global database, verify identities with 440+ data resources, and deliver an accurate result.
IDMERIT provides a comprehensive solution, including:
KYC, video KYC, ID verification, facial recognition, address verification, document verification, age verification, AML verification, business verification, PEP and sanctions list verification, and even a KYX platform for customized solutions on a single platform.
KYC Canada: KYC Canada is a reliable and trusted identity verification provider that helps Canadian companies verify identities quickly and securely. They are a Canada-based KYC company that provides identity verification solutions for businesses in the financial and non-financial industries. They ensure Canadian KYC and AML compliance, help enhance security, mitigate risk, improve client onboarding, and prevent financial fraud.
KYC Canada provides a comprehensive solution, including:
KYC verification, AML verification, video KYC, ID verification, document verification, age verification, business verification, PEP, and sanction list verification.
KYC EU: KYC EU is one of the most reliable KYC providers in the European Union and provides a diverse range of cutting-edge identity verification solutions for businesses in European countries to verify the authenticity of their clients. KYC EU ensures GDPR compliance for the financial and non-financial industries, prevents financial crimes, and helps combat money laundering.
KYC EU provides a comprehensive solution, including:
AML verification, business verification, PEP and sanction list verification, KYC, video KYC, age verification, and customer onboarding.
When choosing an identity verification company, it’s essential to consider certain factors, such as:
Reputation: Look for a company with a proven track record of success.
Technology: Make sure the company uses cutting-edge technology to verify identities that provide advanced security.
Demos: Choose an identity verification company that provides demos to understand the functionality.
Pricing: Choose a company that offers competitive pricing.
Customer Support: Ensure the company provides good customer support service when needed.
Conclusion:
Identity verification is an essential part of business globally in today’s digital age. To combat money laundering, stay compliant, and maintain a reputational image in the digital landscape, choose a reputable identity verification company that helps financial companies and organisations protect their businesses from fraud and ensure they only deal with legitimate customers.
