Financial institutions and other obliged entities must have “reasonable” procedures to gather and maintain information on customers’ identities, along with running watchlist checks on them. In the U.S., these Customer Identification Program (CIP) requirements, outlined in the USA PATRIOT Act, have been designed to limit money laundering, terrorism funding, corruption and other criminal activities.

But these CIP requirements raise important questions: What do regulators consider reasonable? How can these requirements be operationalized in an efficient, cohesive and compliant manner? How can an obliged entity create a CIP that meets the requirements and mitigates risk? …

What is KYC?

Know Your Customer (KYC) procedures are a critical function to assess customer risk and a legal requirement to comply with Anti-Money Laundering (AML) laws. Effective KYC involves knowing a customers identity, their financial activities and the risk they pose.


Do you know your customer? At any rate, you ought to. If you’re a financial institution (FI), you could face possible fines, sanctions, and reputational damage, if you do business with a money launderer or terrorist. …

The pandemic has accelerated pressure on financial institutions to keep pace with both emerging threats and heavy regulatory compliance in a constantly changing global business world.

Regulations like Anti-Money Laundering (AML) and Know Your Customer (KYC), and financial compliance laws cover the broad range of services financial institutions offer, from asset management to business and personal loans and everything in between. The global economy depends on the integrity of financial institutions to stabilize markets and preserve consumer confidence in the system. …

Do you know who you’re doing business with? Sure, you may have Googled the company and name of the person you’re dealing with to distinguish the business’s legitimacy. But do you really know who runs the business, pulls the strings behind the scenes and profits from your dealings?

Do you know if proceeds from your business are being directed into bank accounts of corrupt business owners/shareholders, or used for laundering money or financing terrorism? If you’re a regulated entity (for example, a financial institution), finding out this information is a legal compliance requirement.

Besides legal considerations, there are also social…

The PYMNTS April 2021 AML/KYC Tracker®, developed in collaboration with Trulioo, notes that even as detection efforts improve, “Money laundering has grown more prevalent due to some financial institutions’ and payments providers’ subpar Anti-Money Laundering (AML) and Know Your Customer (KYC) programs, many of which have been exposed as ineffective during the past year’s digital banking surge.”

Per the new AML/KYC Tracker, “Fines linked to AML compliance broke records in 2020, but experts believe that this year’s totals could be even higher. Oversight agencies in the United States imposed $200 million in fines in just the first two months of…

In 2020, the Federal Trade Commission (FTC) received over 2 million fraud reports that resulted in losses of over $3.3 billion. Fraudsters can run a scam from the onboarding process onward by obtaining and exploiting individual means of verification, including street addresses and passwords.

An essential part of any fraud risk management program is an onboarding process that verifies that people are who they say they are. This can prevent fraudsters from entering your systems in the first place.

Preventing fraud risk with ID and business verification

Identity theft is currently among the most common fraudulent activities and is continuing to expand. The increase in identity theft is…

The traditional model to build, deploy, deliver and maintain web applications requires large-scale developer teams and complex, centralized systems. But now, the use of micro frontends is gaining traction. The micro frontend design approach decomposes a frontend app into individual, semi-independent “micro apps,” which work loosely together, similar to microservices.

This new technique creates a massive impact by decoupling large teams and empowering smaller groups to develop strategies and make decisions on their projects. Some of the advantages are:

  • Reducing cross dependencies
  • Separating deployment plans for individual services/applications
  • Splitting the frontend codebase into manageable pieces

As Luca Mezzalira, Chief Architect…

Accellion. SolarWinds. Microsoft Exchange. Until 2021, most of these names were familiar to many organizations as parts of a whole: pieces of the supply chain, providing services that supported day-to-day operations.

Now, they’ve become better known as some of the biggest third-party breaches in recent history, allowing bad actors access to the systems and proprietary information of thousands of organizations worldwide.

These events highlight the need (now more than ever) for organizations to be more proactive with their supplier risk management.

Some context for supplier breaches

As of 2017, the average company had 181 suppliers access their network each week. In 2018, Ponemon Institute found…

Modern businesses rely on a web of trust that includes partners, suppliers, customers and various third parties. Running checks to verify the entities you do business with is both a smart risk-mitigation strategy and a regulatory compliance requirement for many industries.

Criminals have developed numerous schemes that use fake companies to perpetrate fraud and expand the scope of potential targets. After all, companies can deal with hundreds or even thousands of customers so that fraudulent companies can cast a wide net for their questionable activities. Some of these schemes include:

  • Phishing Sending out fake emails to try and collect information…

The convergence of open banking regulations, API integrations and fintech business models is enabling Banking as a Service (BaaS) as a new financial opportunity. BaaS is a business model where banking services are outsourced to third parties. Banks can act as platforms, providing their services to new digital banks or other organizations. It can also work the other way, with fintech companies offering their services to banks.

Stemming from open banking regulations, BaaS uses secure API connections to share customer data and applications in a seamless experience. …


Trulioo is the leading global identity verification provider helping businesses meet #AML #KYC and #KYB compliance

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store