Identity fraud, when an individual assumes either a false identity or misappropriates someone else’s identity, accounted for approximately 50% of all UK fraud in 2012 (source: CIFAS), reinforcing the need for organisations to know their customers.
Anti-money laundering (AML) legislation also highlights that companies must make a concerted effort to be fully aware of who they are dealing with, to prevent their business being used for criminal activities. Executing know your customer checks has now become an everyday business activity.
For many organisations traditional identity checks are no longer acceptable – paper ID documents can easily be forged, storage of a manual paper trail is expensive and simply not practical, especially in the case of remote transactions. Today, more and more businesses are turning to technology for solutions, adopting electronic identity checks as a means of verifying identity and satisfying know your customer requirements.
In the case of anti-money laundering, the Joint Money Laundering Steering Group (JMLSG) has stated that comprehensive electronic identity checks provide the necessary verification levels needed to meet legal obligations.
If you are currently processing identity checks via an electronic solution for AML purposes, it is essential that the system you choose satisfies certain criteria, as advised by JMLSG:
Our IDU range of products includes IDU KYC, a know your customer identity solution for fraud prevention purposes, and IDU AML, a know your customer and due diligence system for anti-money laundering activities.