IDENTITY VERIFICATION
Regulatory compliance.
Multi-geographical regulations are multiplying, and becoming more complex. Are you following the rules?
What is Regulatory compliance?
Regulatory compliance is the adherence to a set of rules and requirements as defined by governments and regulatory bodies. Many of such regulations mandate organizations to verify the identity of their customers, to make sure they are compliant with legislation and to check their probity and integrity. This process is known as the Know Your Customer (KYC) process.
The KYC process usually takes place when prospective customers register for a service or product remotely. It is during the account creation stage that identity verification is sometimes required, either to ensure the identity of the user, or to comply with sector-specific stipulations like age restrictions, fraud detection, and compliance with regulations. In terms of KYC compliance, each country and each sector (banking, insurance, online gaming, government, etc.) must comply with the requirements as set out by relevant national or industry regulators.
In the financial services sector, for example, institutions are legally required to follow regulations such as Anti-Money Laundering and Counter-Terrorist Financing (AML-CFT).
There are also issues related to data protection and compliance with the General Data Protection Regulation (GDPR), as well as issues related to the improvement and securing of European digital exchanges (eIDAS Regulation).
How to comply with regulations?
GDPR
Protecting users’ data.
eIDAS
Securing digital exchanges.
AML-CFT
Ensuring compliant transactions.
GDPR
Protecting users and their personal data with GDPR-compliant solutions.
GDPR is a European regulation that requires companies to protect the personal data and privacy of EU citizens.
It relates to the collection and processing of information from any transaction taking place in the European Union, and entities that process personal data belonging to EU residents. Companies that do not comply with GDPR can face heavy fines, with penalties as high as 4% of annual turnover.
Personally identifiable information, such as name and date of birth, fall into this category, bur GDPR also covers biometric data, which relates to any physical or biological characteristics (fingerprints, facial recognition) that identify a person.
IDnow’s identity verification solutions have been designed to analyze both sets of data to offer a fully GDPR-compliant service.
AML 5
Regulatory compliance with the 5th AMLD/CFT Directive.
The EU’s Anti-Money Laundering and Combating the Financing of Terrorism Directives include legal controls that require financial institutions to prevent, detect and report money laundering activities. As such, financial institutions that issue credit or allow their customers to open bank accounts must carry out due diligence procedures.
The 5th AML/CFT Directive, which came into effect in early 2020, includes a series of changes to previous iterations. Initially focused on money laundering, AMLD 5 includes tax fraud and terrorist financing.
Our identity verification solutions are constantly updated to meet the requirements of AML/CFT regulations, to ensure organizations can achieve regulatory compliance.
eIDAS
Improve and secure trade between countries.
IDnow solutions are also compliant with the eIDAS Regulation, which aims to increase trust in electronic transactions within the EU market. eIDAS establishes a common basis for secure electronic interactions between citizens, businesses and public authorities.
This regulation mainly concerns public sector bodies and trust service providers established in the European Union. It applies to electronic identification, trust services, electronic documents, and electronic signatures.
Our solutions comply with multinational regulations, including eIDAS and beyond.