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Once the Corporate Transparency Act comes into effect, U.S. companies will have to report their Ultimate Beneficial Owner (UBO) information to the Financial Crimes Enforcement Network (FinCEN). In 2022, any new incorporation or significant UBO change will need to be reported and any company formed before the effective date of the Act will have two years to report to FinCEN.

The use of anonymous shell companies, complex ownership structures that often make it difficult to identify true company ownership, has long been one of the critical weaknesses of Anti-Money Laundering efforts in the U.S. In its 2016 Mutual Evaluation Report (MER) of the U.S. government’s AML/CFT program, the Financial Action Task Force (FATF) noted that the “lack of timely access to accurate beneficial ownership information remains one of the most fundamental gaps in the U.S. …

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While there’s been significant progress unifying payment systems across the EU, substantial fragmentation still exists. For example, national payment card schemes in 10 EU countries aren’t compatible with other EU countries and mobile wallets only work on a national level. But solving these issues and creating a single, unified modern EU payment system is the goal of the European Payments Initiative (EPI). With support from the European Central Bank (ECB) and major EU financial institutions, the project expects to launch by 2022.

The EPI looks to solve technological, regulatory and marketplace issues that complicate transactions for European merchants and consumers. Rapidly developing payment technology contributes to uneven adoption rates and incompatibilities. The complexities of intricate payment chains and all the varying rules that national regulators put upon different industry segments make cross-border cohesion difficult. …

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With the threat of fraud rising globally, it’s vital that organizations implement effective fraud prevention processes that are adaptable and secure, while still ensuring good customers can onboard and transact quickly and seamlessly.

In 2019, identity fraud in the U.S. was estimated at $16.9 billion. One article points to 41 different types of fraud, and while not all will be applicable to each organization, it does indicate the variety and depth of fraudulent activity that needs consideration.

Likewise, the threat of cybercrime is increasing, with the annual cost to the global economy from cybercrime estimated to rise to $6 trillion by 2021. Viruses, ransomware, phishing and many other digital threats pose a significant risk of fraud. Cybercrime can also cause compliance failures, either from the act itself, from non-reporting, or by weakening control systems to hide illicit activities. …

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The shift towards open banking is gathering pace all around the world. As the benefits become more widely understood by consumers, businesses and regulators, open banking is bringing disruption to the financial services sector on a scale not seen before.

According to a report by PwC, by 2022, 71% of UK SMBs and almost two-third of adults will have adopted open banking, creating a £7.2 billion revenue opportunity for banks and fintech companies.

Dawn of the data-led economy

Open banking has paved the way for a new generation of financial products, giving consumers more choice and control over their financial lives, and driving competition in the industry. The banks, too, are seeing major benefits with a unique opportunity to create products and services that solve customer — both individual and corporate — pain points and improve services. But such rewards cannot be attained without improvement. Banks can do more than deliver their existing products better, by also focusing on enhancing digital and data analytics capabilities, improving personalization and delivering more value-added services. …

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The convenience and power of using mobile devices are astounding. With more than 14 billion mobile devices worldwide, they’ve become more than just communication devices; they are increasingly becoming a core part of our integrated digital lives. Mobile devices now act as authentication devices, storing a wealth of personal information and providing entry points to numerous online services, including email, banking and social media accounts. But the threat of SIM-swap fraud puts all that information and those accounts at risk. Protecting customers from this risk, which can quickly cause substantial financial harm, is now a fundamental requirement of doing business.

What is SIM-swap fraud?

A SIM swap is a type of account takeover fraud where a fraudster ports someone’s phone number to their SIM card through social engineering. …

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Cryptocurrencies and stablecoins are finally emerging as a mainstream market, pushed along faster now by the global impacts of COVID-19. For all the damage it’s done in many industries, one upside of the pandemic is that it has advanced and expanded use of digital services and online payments.

That’s the good news. But the not-so-good news is that cyber criminals love digital money. It ticks two main things on their checklists: global online access and lingering confusion as the sector becomes more organized. In such a climate, shrewd online criminals are reaping the benefits.

PYMNTS December AML/KYC Tracker,® developed in collaboration with Trulioo, examines the issues around protecting cryptocurrency exchanges from money launderers who rinse unlawful billions using crypto’s vulnerabilities to their advantage. …

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In the midst of a global health emergency, it’s difficult to find the positives. Maybe because we’ve all been in crisis mode for much of 2020, there’s been more time to get some perspective, to better understand the true impact that the COVID-19 pandemic has had (and is still having) on society. While 2020 has been challenging on many fronts, it has rapidly driven acceleration of digital transformation trends and these new capabilities will deliver positive impacts deep into the decade. We decided to look back on 2020 and reflect on some of these trends.

eCommerce significantly increased

COVID-19 resulted in what seemed like an overnight shift to a digital-only world. While at first glance this seemed like a major opportunity — as evidenced by a recent Salesforce report that found a 71% global increase in online sales in the second quarter of 2020 — it also introduced significant challenges. …

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The price gains of Bitcoin during 2020 have been phenomenal, approaching 300% for the year. But is it just speculation or a longer-term, fundamental change in the way the world economy operates? If it is the latter, how can cryptocurrency companies prepare for widespread adoption and increased regulatory requirements, while also ensuring their operations are fast, secure and seamless?

Some of the contributing factors driving the increased use of cryptocurrency include:

  • The COVID-19 pandemic has significantly impacted the global economy. As a result, central governments have created massive amounts of fiat currency. For example, the U.S. Government created over $3 trillion in new funds earlier this year. …
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Personally identifiable information has been called “the new oil.” This data is the touchstone of the modern world, required for everything from opening a bank account to participating in social media. It’s also the most sought-after data type in cyber attacks. So how can organizations successfully protect that information while complying with ever-expanding privacy laws?

Information security standards: ISO 27001

The International Organization for Standardization (ISO) is one of the best-known names in international standardization, recognized in over 160 countries worldwide. …

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Digital identity offers an easy way to sign up for a service or prove who you are online. Even more importantly, for approximately one billion people who don’t have ID documentation, digital identity offers a path to actually having a usable proof of identity. For many, digital identity is the first step to gain access to basic financial services and help lift them and their families out of poverty.

Fundamentals of identity

Many of us take for granted our official identity documents, but in some parts of the world, the idea of having an identity is a luxury. Identity is the fundamental key that unlocks the ability to open a bank account, vote, drive, start a job, receive medical and government services, fly on a plane, participate in online marketplaces, and even buy products and services with one click. …

About

Trulioo

Trulioo is the leading global identity verification provider helping businesses meet #AML #KYC and #KYB compliance https://www.trulioo.com/blog/

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