The Trust Edition - Oct 2023
?? This month's key AML/KYC news and insights from around the world.
Industry Highlights
What happened in the industry this month?
???? Surge in Money Mule Activity Raises Concerns
The Financial Conduct Authority (FCA) has published a pivotal report, revealing that 40% of all fraud cases involve money mules, with a staggering 39,000 potential money mule accounts identified in 2022. The multi-firm review stresses the critical role these individuals or entities play in transferring illicit funds, emphasizing the urgency of strengthening detection and prevention measures within the financial sector.
Financial institutions are urged to amplify their Customer Due Diligence (CDD) and be alert to red flags. By fostering cooperation with law enforcement and enhancing safeguards, the FCA is dedicated to preserving the financial system's integrity and safeguarding consumers.
???? Unpacking Digital Identity at CA Day and eID Forum 2023
On the 11th of October, the European Union Agency for Cybersecurity (ENISA) , in partnership with the European Commission , held the 9th consecutive Trust Services and eID Forum. Previously known as the Trust Services Forum, the event was renamed to better align with developments in the legal environment, the emergence of the EU Digital Wallet, and the pressing need to bolster the security of online activities for EU citizens. Following this, on the 12th of October, D-TRUST, in collaboration with TüViT, successfully conducted the 15th CA Day, delving deeper into the complexities of digital trust and identities.
The anticipation surrounding the European Digital Identity (eID) framework, notably the EUDI Wallet, was a key focus. As experts forecast the introduction of the first EUDI Wallets by 2025, the broader adoption is eyed for 2026. Yet, the specifics of how these wallets will operate are still under review and refinement.
???? SEC Zooms in on Crypto and AML Compliance for 2024
The U.S. Securities and Exchange Commission 's (SEC) Division of Examinations has pinpointed cryptocurrency, emerging technologies, and Anti-Money Laundering (AML) compliance as key areas of focus in its 2024 Examination Priorities report. The SEC underscores the importance of adhering to standards of conduct when dealing with crypto assets and emphasizes the need for rigorous compliance practices, risk disclosures, and technological risk management.
In a more focused approach, the SEC will closely examine the integration of emerging technologies by broker-dealers and investment advisers, ensuring alignment with AML laws and the Bank Secrecy Act. The aim is to uphold market integrity and safeguard participants, urging industry players to proactively fortify their compliance measures.
???? UK Enacts Online Safety Bill for Digital Accountability
The UK government has officially introduced the Online Safety Bill, setting a new standard for digital safety and accountability for online platforms. The legislation protects children from online threats while enhancing adult users' control over their online content. Non-compliance could result in significant penalties, including fines of up to 10% of a company's global revenue or ￡18 million. Ofcom is empowered to monitor and enforce these new regulations, impacting any online service provider with substantial engagement with UK users.
The bill has sparked some controversy, notably from platforms such as WhatsApp , which raised concerns over potential breaches in end-to-end encryption. Additionally, Wikipedia expressed worries about data collection principles. These debates highlight the challenges in balancing safety with user privacy and platform functionalities.
ComplyCube News
?? Andrew Spruce Joins the ComplyCube Advisory Board
领英推荐
Andrew is an accomplished business leader with a career spanning three impactful decades across investment banking, financial technology, regulatory frameworks, data architecture, risk analytics, and more.
His dedication to innovation and insights into data-driven monetization perfectly align with our commitment to excellence, ensuring that ComplyCube remains at the forefront of regulatory technology innovation.
I’m thrilled to join the ComplyCube Advisory Board. Tarek Nechma and Mohamed Alsalehi are leading an exciting charge, using AI to combat fraud on a global scale. They’ve built an exceptional product. I'm excited to contribute to their growth and support their ongoing innovation journey.
We’re delighted to have him join our mission to build trust at scale ??
?? Solution focus: Customer Due Diligence (CDD)
Whether you need to perform Customer Due Diligence or Enhanced Due Diligence, ComplyCube offers state-of-the-art onboarding flows, an extensive range of KYC checks, and real-time monitoring capacities to ensure peace of mind. You can opt for:
?? Global and fast document verification
?? Cutting-edge biometric verification
?? Seamless address verification
Our ‘No Code’ and ‘Low Code’ offerings enable you to start creating customer identity verification journeys in a matter of minutes.
For more information on ComplyCube's CDD solutions, get in touch with one of our KYC/AML Specialists today ??
?? Updated guide: What is Customer Due Diligence (CDD)?
Financial institutions and various regulated entities use Customer Due Diligence (CDD), a crucial component of the Know Your Customer (KYC) process, to manage risk, combat financial crime, and adhere to regulatory standards. The core objective of CDD is to confirm the identities of customers and evaluate the potential risks of entering into business engagements with them.
This guide provides a comprehensive exploration of the CDD process and the typical challenges encountered. It also sheds light on effective customer due diligence strategies, up-to-date trends, and innovations in technology, with a particular focus on the shift towards digital solutions in customer due diligence.
?? Events: See you at SiGMA World Europe & Total Telecom
?? For more information on ComplyCube's IDV, KYC & AML solutions, get in touch with our AML/KYC experts here.
The Maltese sun eagerly awaits the start of the event ComplyCube!? We're waiting for you too!????