Table of Contents

• • Understanding Online ID Verification
  • What are ID Verification Solutions, and Why do Businesses Embrace them?
  • The Dynamics of ID Verification Services
  • The Convenience of Verify Identity Online
  • Introducing IDMscan
  • Conclusion

Understanding Online ID Verification

This is a sophisticated process proposed to identify individuals involved in online activities today because cyber threats seem to be what is important, especially in areas of personal or sensitive nature, including financial transactions.

The inclusion of an effective digital identity verification system becomes paramount as cyber threats grow scarier, particularly on issues with sensitive information and financial transactions. Digital identity authentication, which is a broader concept that involves online-based identity verification through advanced technology that confirms the authenticity of one’s identity. This multilayered approach not only improves security but also simplifies user onboarding resulting in a seamless experience and it is simple to use.

Here are some statistics showing fraud rates in some industries in the past years:

• Money laundering in the cryptocurrency industry increased by 2022, totaling $23.8 billion.
• Up to 68% compared to the previous year, UK authorities lost £726.9 million to identity theft by 2022.
• According to UK Economic Data, in 2021, digital identity verification in finance achieved 77% adoption, indicating a more transparent financial environment.
• More than 100 billion pounds are laundered in the United Kingdom each year. Identity fraud is the most prevalent challenge for consumers, accounting for 6.03% of transactions by 2023, including 85% of cases involving imitation fraud.

What are ID Verification Solutions, and Why do Businesses Embrace them?

ID authentication solutions leverage on technologies such as artificial intelligence and machine learning to save and access personal information, guaranteeing strong identity verification procedures that are dependable and secure. Businesses in all sectors are now employing ID verification solutions to bolster their security levels. A detailed approach is achieved from this solution for validating user engagement, curtailing fraud risk, and adhering to regulations.

Companies who integrate digital identity verification into their operations show value by protecting user data and establishing trust with their users. Modern identification authentication solutions go beyond the traditional messy ways; they have fast procedures that are flexible enough to improve customer experience as well as enhance safety while opening new avenues of opportunities.

1. Building the wall of trust:
   Businesses are protected from financial loss, fraud and reputation damage by the identity verification platform. To avoid regulatory pitfalls, they facilitate compliance with KYC and AML rules and guarantee uninterrupted functioning.
2. Simplifying customer journey:
   ID verification solutions speed up onboarding processes , minimizing paperwork and offer bespoke recommendations thereby unlocking value data increasing customer satisfaction levels.
3. Beside special gate keeping:
   Contemporary identification is far beyond visually examining passports or driver’s licenses alone such as Document Detective, Biometric Guardians which are scanning documents carefully to authenticate them in real-time, using fingerprint and facial recognition technologies.

The reason why implementation of ID verification solutions does not only end with ticking off an item for the security team, but rather it is a strategic decision that carries weight .

The Dynamics of Identity Verification Services

Typically, identity verification services come through special channels; they serve as the central and efficient way for confirming that a user is who they say they are. With this service, document authentication, biometric authentication and data analytics are employed so as to ascertain the individuals approaching online platforms are genuine unlike in traditional mode of identification thereby increasing security.

The importance of an identity verification cannot be underestimated by businesses seeking a holistic approach. For example, these platforms usually offer real time analytic detection, fraud detection tracks and seamless integration capabilities The flexibility of these platforms allows them to be used across different sectors such as finance, healthcare or e-commerce.

The Convenience to Verify Identity Online

Knowing that one can verify himself while undertaking digital transactions is comforting. From opening bank accounts to accessing electronic services and making online purchases; however, simple and secure authentication systems improve the overall user experience to avoid having it stand up solidly which makes onboarding processes fast and hassle-free.

There are promising ideas in terms of online ID verification solutions’ future development due to technological progressions. The synthesis of artificial intelligence into more accurate forms.

Introducing IDMscan

First and foremost, it should be understood that IDMscan is a worldwide API for ID verification. It has been made in such a manner that makes it possible to scan the user’s ID documents and determine if he or she is truly who they claim to be. This can handle both online and offline document checks. It mostly validates government issued identity cards.

The solution involves verifying documents like driver’s licenses, national passports, and other government-issued ID documents from about 175 countries globally. Such features as the DeepFake detection model with the highest accuracy rates in the world; as well as liveness recognition model are included.

It enables real time comparison of faces and biometric facial recognition thereby guaranteeing that one is dealing with an actual person during the process of identifying IDs. Consequently, it offers some additional attributes such as Application Program Interface integration into existing platforms and multi-language support.

Conclusion

There is an advancing need for better online experiences, which makes online identity verification an important aspect in this perspective. IDMERIT has shown the way in providing excellent identification verification solutions; that are more dependable and consistent in finding away with the long-term challenges of identity verification through its commitment to modern technology by creating IDMscan API and up to date biometric recognition models.

IDMkyx is a combination of all the identity verification services together delivering secure and reliable ID verification solutions to safeguard your business in every situation whether it is in its current state or during expansion.

IDMERIT entrusts a full-fledged KYC AML solution crafted to assist businesses in verifying their customers’ identities and ensuring adherence to AML regulations, to scrutinize identity documents and meticulously verify individuals in real-time.

The post The Essence of Online ID Verification for Enhanced User Authentication appeared first on IDMERIT.

The luxury goods market also faces its share of fraud, counterfeit scams, and money laundering crimes.  In fact, two owners of Los Angeles-based import and export textiles company, Pacific Eurotex were recently sentenced and ordered to forfeit $3.1 million in addition to paying a $370,000 fine due to their part in a complex money-laundering scheme. 

Major categories of luxury goods include:

• Haute couture clothing 
• Rare art/paintings or sculptures
• A high-end automobile, such as a sports car
• A yacht (motor, sailing, catamaran, and gulet)
• Accessories, such as jewelry and high-end watches
• Upscale luggage and personal travel equipment
• Wine (premium, super luxury, icon, and rare vintages) 
• Homes and estates ($10M or more in-home valuation)

Illicit activity is growing throughout the luxury goods market especially in fashion, high-end jewelry, rare art, and the upscale real estate market. Fraudulent use of credit cards or identity spoofing are major issues that cause chargebacks and, in the case of identity spoofing, can even lead to complex forms of money laundering. 

Identity Theft: Stolen Credit Cards & Identity Spoofing 

“Of the 2.2 million fraud reports, 34% incurred a loss, up from 22% in 2019. These losses totaled $3.3 billion, with a median loss of $311. In total, the FTC reported 1,387,615 cases of identity theft.” (CreditCards.com) Identity theft and the use of stolen credit cards are extremely common crimes in different industries within the luxury goods market. Customer identity verification is the first step in protecting a brand. Understanding who your customers are, their past, and how to onboard them while protecting your most vulnerable assets, your products, is one of the most important steps a business owner can take.  

Global identity verification solutions build risk profiles from past financial behavior as a method to segment bad actors and eliminate risk to a luxury brand. 

The most common products bought with stolen credits card numbers by illicit actors include: 

• Mac books
• Rolex watches
• Smartwatches
• Diamond rings
• World of Warcraft gold
• Louis Vuitton handbags
• Cases for electronic devices
• Gift cards for iTunes and Best Buy

Fraud and chargebacks are extremely common in the luxury retail space and can derail an entire brand’s progress as well as its ability to be seen as a going concern. Identity verification services should offer robust fraud protection and transaction monitoring in order to keep bad actors out. Many of these brands do not have strict policies covering customer identity verification.  

Fraud in Luxury Retail

According to Shopify, “[t]he global e-commerce market is expected to total $4.89 trillion in 2021. That figure is estimated to grow over the next few years, showing that borderless eCommerce is becoming a profitable option for online retailers.” Identity verification services including Know Your Customer procedures are a mainstay to prevent fraud and stolen or counterfeit goods. 

Fraud in luxury retail happens in a few surprising ways. 

The common types of retail fraud taking place are:

• Vendor Theft
• Refund Fraud
• Employee Fraud
• Discount Abuse
• Sweethearting (false price adjustments)
• Cash Register Tampering
• Wardrobing (returning after use or “renting”)

“Consumers returned an estimated $428 billion in merchandise to retailers last year, approximately 10.6 percent of total U.S. retail sales in 2020. Of those returns, roughly 5.9 percent were fraudulent, equating to $25.3 billion,” according to a report released by the National Retail Federation (NRF) and Appriss Retail. During the return process, customer identity verification needs to be completed by scanning and verifying identity documents against watch lists and/or fraud databases.  This is why customer identity verification is important during the sale of retail goods – whether it be bulk purchases or one-off high-end luxury items. 

Cross-channel returns can present problems for a luxury brand. According to Vogue Business, this is “the ability to buy an item online and take it back in store — is the feature that affluent shoppers worldwide look for.” 

Synthetic Identity Fraud Hurts Luxury Retailers

Sophisticated fraud attempts against luxury retail brands are becoming more prevalent including the use of synthetic identities in order to access high-end luxury brands where possibly the premium identity verification services carry a lower burden or are nonexistent in order to resell goods even at a fraction of their MSRP price. Usually, in order to access high-end products, a new customer must furnish an ID card and use valid and variable information such as a social security number and credit card account information. 

When a bad actor attempts to create a synthetic ID, several tasks must be accomplished: 

1. A modus operandi (motive or goal) must be chosen
2. Real personally identifiable information (PII) must be sourced from a worthwhile target
3. Pieces of real and fraudulent information must be stitched together to create an identity the criminal can use to commit an act of identity fraud
4. The criminal must then knowingly use the identity to apply for some sort of benefit via a bank or organization and be able to fool the identity verification or know your customer solution 

Many criminals use brazen techniques to steal PII data or identify data out of dumpsters or even purchase this data on black market exchanges (in-person or online). Once the criminal acquires this information there are normally two routes to using the information after they are approved for services:  quickly attaining resources and maxing out a financial instrument or using the fraudulently attained resources to build a credit score up over time and simply disappearing after the entirety of funds are depleted.

So, what can luxury retailers do? 

1. Implement Eligibility Verification
2. Streamline Policies and Procedures
3. Upgrade Your Point of Sale System
4. Use acquiring banks with low chargeback thresholds 

In addition to high-end luxury retail brands, jewelers are a prime target for fraud. Customer identity verification should be a mandatory part of the purchase process. 

IDMscan is a robust fraud and compliance solution to help you comply with AML/CFT obligations. Contact one of our Identity Executives to get started. 

FineJewelers Face Identity Verification Woes

“Fraud in this industry goes back hundreds of years – before the internet, before credit cards,” Sourabh Kothari, director of Merchant Advocacy at Signifyd said. “People have been stealing jewelry for centuries, even millennia because it carries value and crosses borders.” Global identity verification solutions often aren’t focused on helping luxury jewelry brands protect themselves against fraud or identify repeat offenders. 

Examples of high-end jewelry brands that cater to premium customers include:

• Cartier
• De Beers
• Chopard
• Pomellato
• Boucheron
• David Morris
• Tiffany & Co.

One customer-facing identity verification policy listed on the website of trejours states, “In order to make sure that we are creating a safe and reliable marketplace where jewelry lovers and jewelry vendors can have a great experience, we take steps to verify the identity of every Trej member via the most trusted identity verification system used by major financial and banking institutions. We trust, but we verify.” It is this attention to detail and the “extra step” that protects this luxury jewelry marketplace available for customers to rent and purchase fine jewelry.

Picture-Perfect Crimes: Money Laundering & Fraud in the Luxury Art Market

According to a recent report by Transparency International on the art market, this industry is at higher risk due to the traditions of confidentiality and discretion in the art world, and that works of art can be both high-value and easily transportable.” This level of confidentiality and portability lend the industry to be ripe for potential fraud and money laundering.

Customer identity verification during complex transactions involving rare art including sculptures, paintings, and collector’s pieces. The Heritage Foundation, New York MET, and private art dealers and auctions are some of the many organizations in this industry at risk for fraud. Money laundering and proceeds from sales of illicit goods such as arms or counterfeit substances are a huge issue that until recently has gone undetected.   

In the United Kingdom, “art market participants” were included in the amended legislation. 

Art Dealers will be required to: 

• Conduct a risk assessment
• Appoint a Money Laundering Reporting Officer (MLRO)
• Document your AML policies and procedures

Due to this amendment, any art dealers or those engaged in the sale or trade of art valued at over £8,500 (approx. 10,000 Euros) must adhere to the requirements above. As the sale is being carried out, risk profiles need to be established and the level of risk of the parties needs to be determined and appropriate due diligence carried out. 

When makes a customer “high risk”?

1. “High-risk country” status – one or both parties are from a high-risk country
2. Politically Exposed Person (PEP)  – a client is susceptible to potential bribery or being engaged in public office and has a high level of trust
3. No face-to-face interaction – both sides of the sale are done virtually or through intermediaries

In addition to art dealers, sales of luxury yachts and homes are susceptible to money laundering and identity fraud. 

Are you an Art Dealer or Luxury Yacht Broker interested in fraud prevention and customer verification solutions?  Contact Us today. 

Money Laundering Through Sales of Luxury Yachts 

In general, “yacht models can range in price anywhere from $500,000 and upwards of $10,000,000, depending on size, year, and model.”(GalatiYachts) At this high of price point, there are numerous reasons for customer identity verification and, if the exchange is through an intermediary or across international waters, a global identity verification solution should be integrated into the sale. 

 As we look at the number of yachts sold during 2020, according to SuperYachtTimes, “2020 ended on 295 used yacht sales of vessels over 30 metres, compared with 278 in 2019. The all-important 30-40 meter market bore the brunt of the decline in new-build sales during 2020. 76 new yachts in this category were sold in 2020 compared with 98 in 2019.”

1MDB Yacht Seized in Landmark Money Laundering Case

A $250 million superyacht is at the center of a money-laundering story that is larger than the boat itself. “The quarter-of-a-billion-dollar boat is believed to be the property of Jho Low, a Malaysian financier with close ties to disgraced and defeated former Prime Minister Najib Razak.”(AMLPartners) Jim Low was part of 1MDB, an organization purportedly connected to officials high up in the Malaysian government including then-Prime Minister Najib Razak. Razak was accused of channeling over RM 2.67 billion (approximately US$700 million) from 1Malaysia Development Berhad (1MDB) for personal gain through his bank accounts. 

Three additional money laundering or drug cases resulting in the seizure or forfeiture of luxury yachts include:   

• 13 June 2021 – vessel ‘SY Windwhisper’ seized as 3 arrested after a tonne of cocaine was found onboard
• 8 July 2020 – ‘Sunrays’, seized by Royal Gibraltar Police (RGB) following ongoing operation into money laundering & cross border Transnational drug trafficking
• June 20, 2020 – US Department of Justice links $957m luxury yacht Topaz with 1MDB scandal

Customer identity verification is one of the most important aspects when discussing the sale or rental of high-end yachts or real estate. Yachts and high-end real estate sales are, again, prime targets for money launderers or fraudsters as the level of anonymity is usually kept quite high and can be done on a handshake or based on one’s reputation. Without careful risk assessment and customer due diligence throughout the sale, one or more parties can be easily swindled out of hundreds of thousands or millions of dollars.  

The yacht purchase and sales process can be quite daunting and involved especially with industry jargon and the high expectations of upscale, discerning clientele. 

The maritime and yachting world is rife with jargon (flag state, charter certificates, port state control, etc.), and the sales process adds to that with “listing broker” and “selling broker.” (Denison Yacht Sales) There can be many moving parts, parties, and problems that occur during the sale of a superyacht or luxury yacht. 

One overarching necessity is to have a robust global identity verification solution available to brokers, buyers, or sellers during these complex situations. 

Identity Verification in the Luxury Goods Market 

During a sale or transfer of funds between parties, several forms of fraud protection should be implemented. Notwithstanding current anti-money laundering regulations imposed by local regulators and legislative bodies, enhanced identity verification can save a brand time and protect rare assets from falling into the wrong hands. 

Identity checks are particularly important for banks and financial institutions to screen for money laundering, fraud, and past illicit financial activities. KYC, or Know Your Customer, is the process of verifying a customer’s identity to ensure they are providing accurate personally identifiable information (PII) as well as in order to understand their past financial behavior with previous institutions or money service providers. 

The Know Your Customer (KYC) process helps to ensure that the financial institution’s services are not misused for identity theft, money laundering, and the funding of criminal organizations. KYC ensures that organizations are both compliant and that customers with a suspicious financial background are not approved for an account at the bank or financial institution.

Several forms of identity verification exist include: 

• Biometric verification (facial recognition, iris identification, fingerprint match, voice comparison)
• Two-factor authentication
• Knowledge-based authentication
• Credit bureau-based authentication
• Online verification (remote or eKYC)
• Database methods (government pr LEO database records search)

IDMscan: Fast, Secure, & Global Identity Verification Solution

IDMscan can authenticate and verify government-issued identity documents in online and offline conditions. It is a part of several identity fraud solutions that IDMERIT has created which offer fraud detection before it happens. 

Our document verification solution provides powerful security in the airline industry, at home and abroad.

• Multi-Language support
• Integrate seamlessly with IDMaml and IDMdevice
• Easily integrate into your system with a simple API
• Biometric facial recognition & face liveliness technologies are used to produce a live match
• Validate your customers in less than 6 seconds
• We can validate Passports, Drivers Licenses and National ID’s from 175+ countries
• Indigenously built Deepfake recognition and liveness recognition models with the highest degree of accuracy in the world

Contact one of our identity specialists to Schedule a Demo of IDMscan today.

Follow our LinkedIn and Facebook pages for anti-money laundering news and significant regulatory changes.

About IDMERIT

Headquartered in San Diego, California, IDMERIT provides an ecosystem of identity verification solutions designed to help its customers prevent fraud, meet regulatory compliance and deliver frictionless user experiences. The company is committed to the ongoing development and delivery of offerings that are more cost-effective and comprehensive than other solution providers. IDMERIT was funded by experts who have been sourcing data on personal and business identities across the globe for over a decade. This access to official and trusted data throughout the world has become increasingly important as companies find themselves completing transactions across borders as a standard course of business. www.idmerit.com

The post Identity Verification and the Future of the Luxury Goods Industry appeared first on IDMERIT.

The Financial Action Task Force (FATF) proposed a law to apply the travel rule to cryptocurrency transactions, effectively making them completely traceable. The Travel Rule requires businesses who are engaged in or are an intermediary to, cryptocurrency transactions to collect and share the personal data of participants in a transaction. This rule already applies to wire transfers such as those completed through a bank or Western Union.

What Is The Travel Rule?

The Travel Rule is the industry term for the FATF Recommendation #16 focused on anti-money laundering efforts. The rule requires both financial service firms and Virtual Asset Service Providers (VASPs) to collect Personally Identifiable Information (PII) on transactions exceeding 1,000 USD/EUR.

In addition to basic biographical information, VASPs and banks are required to collect a further layer of information from senders during a transaction: their physical address, unique ID number (national identity number, etc.), customer identification number, or date and place of birth.

Initially, the Travel Rule only applied to banks. The Travel Rule’s scope was extended in 2009 to include crypto companies. The G20 and other jurisdictions have begun to incorporate the travel rule into their local AML/CFT laws to aid money laundering investigations and provide true transaction clarity. This change will undoubtedly assist law enforcement agencies and regulators during investigations and with the enforcement of anti-money laundering laws and regulations. 

According to FinCEN’s guidance report on this matter, a few frequently asked questions include: 

1. Are all transmittals of funds subject to this rule?

No. Only transmittals of funds equal to or greater than $3,000 (or its foreign equivalent) are subject to this rule, regardless of whether or not currency is involved. In addition, transmittals of funds governed by the Electronic Funds Transfer Act (Reg E) or made through ATM or point-of-sale systems are not subject to this rule. (January 1997)

2. What are the “Travel” rule’s requirements?

All transmittor’s financial institutions must include and send the following in the transmittal order:

• the name of the transmittor
• the account number of the transmittor, if used
• the address of the transmittor
• the identity of the transmittor’s financial institution
• the amount of the transmittal order
• the execution date of the transmittal order 
• the identity of the recipient’s financial institution

    and, if received:

• the name of the recipient 
• the address of the recipient 
• the account number of the recipient, and 
• any other specific identifier of the recipient.”

What is important to understand is that as this rule is being extended to VASPs and crypto transactions, the entire transaction traceability process will become much easier and less time-consuming.

Want to learn more about the Travel Rule and how it applies to your bank? Contact one of our  Identity Executives today. 

Who Regulates Cryptoassets & Crypto Exchanges? 

The European Union (EU) is composed of 27 member states, each of which has its own regulations and laws relating to cryptocurrencies and crypto exchanges. 

There are a number of banks and commissions which regulate the cryptocurrency industry/crypto exchanges including:

• European Commission (EC)
• European Central Bank (ECB) 
• European Banking Authority (EBA)
• European Insurance & Pension (EIOPA)
• European Supervisory Authority for Securities (ESMA)

These agencies have been busy proposing and implementing rules to build a strong framework that is intended to combat ML/TF and illicit activities including fraud, spoofing, and abuses of the financial system. 

Identity Checks For Money Laundering & Fraud Prevention in the EU

Identity checks are particularly important for banks and financial institutions to screen for money laundering, fraud, and past illicit financial activities. KYC, or Know Your Customer, is the process of verifying a customer’s identity to ensure they are providing accurate personally identifiable information (PII) as well as in order to understand their past financial behavior with previous institutions or money service providers. 

The Know Your Customer (KYC) process helps to ensure that the financial institution’s services are not misused for identity theft, money laundering, and the funding of criminal organizations. KYC ensures that organizations are both compliant and that customers with a suspicious financial background are not approved for an account at the bank or financial institution.

The essential documentation required for a successful Know Your Customer process is as follows:

Proof Of Identity (POI):

• A UID/passport, driver’s license, or voter’s ID card
• A PAN (Permanent Account Number) card with a picture matching the customer
• A current ID card issued by the State
• Any valid Debit or Credit card issued by a bank

Proof Of Address (POA):

• A copy of utility bills such as electric bills with a verifiable address
• Visa/Driver’s License with a digital picture
• A copy of a registered sale agreement or lease for residence
• Any identification document in the name of one’s spouse

Proof of Income/Past Financial Activities

• Income Tax Returns
• Credit Report
• Paycheck Stubs or Bank Statements

A new client may attempt to use one or more of the above documents for identity verification and the key for a bank/financial institution to understand is the vulnerable nature of current identification documents in the EU and worldwide. Despite security innovations, fraudsters are still engaging in many legacy techniques to fraudulently obtain access to a bank’s offerings.

European Union Moves Toward Full Transaction  Traceability, Applying the ‘Travel Rule’ To Cryptocurrency Transactions 

Are companies ready for this drastic shift? As of October 2020, according to the Finbold’s Bank Fines 2020 report, global authorities issued $13.74 billion in AML fines, with three large US banks, Goldman Sachs, Wells Fargo, and JP Morgan Chase accounting for over half of that total. Many crypto exchanges lack the necessary compliance procedures required to even begin to apply these laws. Many id verification solutions were not built to comply with the level of complexity required to root out potential bad actors and limit their access to modern bank systems. 

“These proposals have been designed to find the right balance between addressing these threats and complying with international standards while not creating an excessive regulatory burden on the industry,” the European Commission said in its statement.

The rule change will require that: 

• A company handling crypto assets for a customer must include the customer’s PII information. This would include the customer’s name, address, date of birth and account number
• Transfers must include the name of the person who will receive the crypto assets
• Providing anonymous crypto-asset wallets will be prohibited
• The recipient’s service provider must also check if any of the required information is missing

The drastic change in this rule seems to be that this information must be verified to be accurate and that anonymous crypto wallets will no longer be permitted. This rule change will definitely assist in transaction traceability during criminal investigations and retrieving transaction data. 

In a play on words, the Travel Rule ensures that personal data is shared with participating banks during domestic and international transactions. There literally is no way to avoid this transaction trail or transaction traceability because the personal data of the transacting parties ‘travels’ along with their transfers.

Interested in a robust fraud and compliance solution for your bank? Contact IDMERIT today. 

Will Anonymous Crypto Wallets Disappear? 

One of the major issues surrounding cryptocurrency transactions includes their ability to be monitored and regulated including transaction traceability especially when relating to cryptocurrency’s ‘anonymous’ crypto wallets. Modern id verification solutions must be able to collect, verify, and share data during the customer onboarding process or during these sometimes complex cryptocurrency transactions to prevent fraud and abuse. 

Bitcoin founder ‘Satoshi Nakamoto’ created Bitcoin with the intention that his financial system without ‘third-party intermediaries would be the wave of the future. One major tenant of this system would be that people would be able to send and receive funds anonymously. While this would be a major leap forward in fundamental privacy protections, this type of unregulated system would present a number of issues both in terms of oversight and the complete unfettered ability to commit illicit offenses such as money laundering, fraud, and terrorist financing. 

Building a ‘Harmonised Framework’

The EC and the FATF have since their inception advocated for uniformity in applying specific anti-money laundering and counter-terrorist financing regulations. In fact, both entities have been quite vocal about their views. 

“We shouldn’t have different rules for the financial system. They should apply across digital currencies as well,” said EU commissioner for financial services, Mairead McGuinness, during a press conference. 

Future of Cryptocurrency Transaction Traceability 

Implementing these rule changes will undoubtedly change the landscape for both cryptocurrency traders and regulators alike. Gone will be the days of drawn-out, costly, investigations as transactions will be easily resolved along with their senders and receivers. Cryptocurrency exchanges, banks, and fintech companies will need to adapt to the new regulatory climate, including enhanced identity verification solutions being the norm, not just the exception. 

IDMscan is a robust fraud and compliance solution to help you comply with AML/CFT obligations. Contact one of our Identity Executives to get started. 

IDMscan: Fast, Secure, & Global Identity Verification Solution

IDMscan can authenticate and verify government-issued identity documents in online and offline conditions. It is a part of several identity fraud solutions that IDMERIT has created which offer fraud detection before it happens. 

Our document verification solution provides powerful security in the airline industry, at home and abroad.

• Multi-Language support
• Integrate seamlessly with IDMaml and IDMdevice
• Easily integrate into your system with a simple API
• Biometric facial recognition & face liveliness technologies are used to produce a live match
• Validate your customers in less than 6 seconds
• We can validate Passports, Drivers Licenses and National ID’s from 175+ countries
• Indigenously built Deepfake recognition and liveness recognition models with the highest degree of accuracy in the world

Contact one of our identity specialists to Schedule a Demo of IDMscan today.

Follow our LinkedIn and Facebook pages for anti-money laundering news and significant regulatory changes.

About IDMERIT

Headquartered in San Diego, California, IDMERIT provides an ecosystem of identity verification solutions designed to help its customers prevent fraud, meet regulatory compliance and deliver frictionless user experiences. The company is committed to the ongoing development and delivery of offerings that are more cost-effective and comprehensive than other solution providers. IDMERIT was funded by experts who have been sourcing data on personal and business identities across the globe for over a decade. This access to official and trusted data throughout the world has become increasingly important as companies find themselves completing transactions across borders as a standard course of business. www.idmerit.com

The post EU AML Crypto Rule Update: European Union Moves Toward Full Transaction Traceability appeared first on IDMERIT.

What Are Digital COVID Travel Passes & Which Airports Use Them?

Facial recognition and biometrics are being rolled out across the globe at many international airports. In addition to this innovative approach to PCR test result verification, travel associations and governments are also implementing digital COVID travel passes. IBM says these passes, “enable businesses to verify health credentials for employees, customers, fans and travelers entering their site based on their own criteria.” Airports Currently Using Digital COVID Travel Passes:

• France: Paris-CDG & Paris-Orly
• Dubai: Dubai International Airport (DXB)
• United States: Atlanta’s Hartsfield-Jackson International Airport
• Japan: Haneda Airports
• Brazil: Florianópolis Airport
• Singapore: Changi Airport

Biometrics, Digital Apps, & Facial Recognition Add Security & Speed To Security Lanes Worldwide

As the travel industry returns to semi-normal conditions, major glitches still impede smooth travel for passengers. Long lines and wait times were the norms at security checkpoints even before this crisis began. Thanks to the adoption of biometrics, facial recognition technology and digital travel pass apps, that is rapidly changing. COVID Health Travels such as CommonPass, IBM’s Digital Health Pass, and many more are available for uses to download. These digital apps streamline the boarding and security checkpoint processes.

Facial Recognition Technology Speeds Up Boarding Time & COVID Health Screening

According to a recent Government Accountability Office (GAO) report, “U.S. Customs and Border Protection (CBP) has made progress testing and Facial Recognition Technology (FRT) at ports of entry to create entry-exit records for foreign nationals as part of its Biometric Entry-Exit Program. As of May 2020, CBP, in partnership with airlines, deployed FRT to 27 airports to biometrically confirm travelers’ identities as they depart the United States (airexit) and was in the early stages of assessing FRT at sea and land ports of entry.” The results of a recent controlled scenario test by the Department of Homeland Security (DHS) Science and Technology Directorate (S&T) showed that facial recognition reached up to 96% accuracy which is a useful statistic for those in favor of this technology. Additionally, the GAO notes, “According to TSA officials, automating current identity verification capabilities through the use of facial recognition technology has the potential to improve this process by better identifying impostors, or travelers using valid travel identification documents for fraudulent purposes at the checkpoint.” Facial recognition and using biometric technology have the potential to improve the lives of millions and deter bad actors at the outset. IDMscan, IDMerit’s flagship identity verification tool, can help your compliance team leverage facial recognition and biometrics to streamline your identity verification program. Examples of biometric technology include:

• Iris recognition
• Fingerprint scanning
• Facial recognition
• Finger-geometry recognition
• Hand-geometry recognition

Thermal Facial Recognition & Remote Fever Detection Detect PCR Status

Thermal facial recognition and remote fever detection are used regularly by Airport security and CBP officers to ensure travelers are not currently suffering from symptoms of COVID. According to the Oxford Journal of Law and the Biosciences, “[a]mong a growing list of COVID-19 symptoms, fever (defined as a body temperature above 100.4°F/38°C) is one of the tell–tale symptoms of infection. As the pandemic has gained momentum, government agencies and corporations are increasingly turning to fever checks as a mechanism for gauging the potential presence of SARS–CoV-2 among citizens, travelers, and employees.”

Airports in France, UK, and Japan First To Adopt Digital Health Travel Passes

France Uses Facial Recognition & Digital App To Determine Negative PCR Test Results

France became the first EU country to implement an app-based COVID Health Travel Pass. According to American Airlines(AA), this feature on the government’s TousAntiCovid app allows “users to upload antigen or PCR tests by scanning a QR code on the test result form.” Additionally, AA goes on to state, “A negative test result can be used for limited air travel to Corsica on Air France and Air Corsica flights and to overseas territories beginning at the end of May.” Common features of COVID digital health travel apps include:

• upload antigen or PCR tests
• Third-party data sharing
• Upload digital photographs
• Cryptography protects personally identifiable (PII) data

British Airways Adopts Self Boarding as COVID Crisis Continues

Self-boarding has been underway at Heathrow during the pandemic but recently British Airways has also begun to adopt self-boarding or “touchless travel” procedures. The EU Digital COVID Certificate (EUDCC) was approved and is expected to enable travel within the EU in early July. The EUDCC will be, “proof that a person has been vaccinated against COVID-19, tested negative, or recovered from an infection.”

Dubai International Airport

Dubai International Airport recently implemented digital COVID travel passes and continued the mandatory use of masks in some areas of the airport. “Pre-COVID-19, passengers, on average, spending about 1.5 hours in travel processes for every journey, the organization suggested. The time included check-in, security, border control, customs, and baggage claim,” Alarabiya News reported. Over the last six months, 154,000 travelers have used Dubai International Airport’s biometric system to prove their COVID vaccination or current negative PCR test results. Other international implementations of facial recognition and biometrics include:

• Japan: Face Express, a new facial recognition system is being launched throughout Japanese airports this July
• Brazil: Florianópolis airport is also preparing to integrate facial recognition into its processes in July

Privacy Still Up For Debate

Facial biometrics legislation is still being debated but some privacy think tanks are lobbying to “give people the information they need to accurately decide how they want to share their facial data with companies. It also gives them control over how their facial information is shared with companies that use facial biometric identity verification. The goal of the legislation is to prevent consumer-focused facial recognition Software companies from mismanaging people’s facial data.” Despite privacy concerns, identity verification and digital COVID travel passes are now the norms, not the exception.

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About IDMERIT

Headquartered in San Diego, California, IDMERIT provides an ecosystem of identity verification solutions designed to help its customers prevent fraud, meet regulatory compliance and deliver frictionless user experiences. The company is committed to the ongoing development and delivery of offerings that are more cost-effective and comprehensive than other solution providers. IDMERIT was funded by experts who have been sourcing data on personal and business identities across the globe for over a decade. This access to official and trusted data throughout the world has become increasingly important as companies find themselves completing transactions across borders as a standard course of business. www.idmerit.com

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