We recently wrote about how Identity Fraud Rings use compromised identities from data breaches to commit illegal activities. Last week, Yahoo! revealed it had suffered a massive data breach - 500 million user records were reportedly compromised — “the biggest known intrusion of one company’s network”.
Sanctions Screening review of a flagged individual or company isn't hard, but it does take time, on average more than 19 minutes per flag. That’s not a lot of time, but when Financial Institutions (FIs) have thousands of flagged applications to review every day, it becomes a fulltime job for a team of people. The operational burden of clearing a large number of flagged applications impacts your profit margins by potentially reducing the number of customers accepted, and by increasing the cost of compliance operations, including regulatory fines.
A Millennial Answer to the “Know Your Customer” question... Or a brief introduction to the future of trust
The trends for Anti-Money Laundering seem particularly clear this year: 1) More Enforcement; 2) Efficiencies in Compliance, and 3) Challenges with the explosion of FinTech. We can see the reflection of these subjects in ACAMS agenda for their fall conference in Las Vegas.
These are key sessions at the ACAMS conference that we are looking forward to attend. We have divided them into two categories:
Virtual Currencies: Court Rules that Selling Bitcoin Is Not Money Transmitting and Selling Bitcoin to Criminals Is Not a Crime
Guest blogpost by Serrin A. Turner, Benjamin A. Naftalis and Pia Naib of Latham & Watkins LLP
The ruling is an outlier driven by its unique facts and is unlikely to change the general regulatory landscape for Bitcoin businesses.
High Risk processing is typically used when a processor or acquirer finds the account to be either in a list of unacceptable merchant types or the history of processing matched with the sales volume exceeds guidelines set by the processor.
High risk also differs at each merchant processor. One Processor may consider your length of processing history to be a deciding factor while another may be more concerned with the industry type you are selecting to process under.
In every scenario the underwriting process must meet a set of specific guidelines set by each processing entity and those guidelines will determine the associated risk of the business and deem it necessary for a higher risk processing model.
Identity fraudsters usually work in groups. Called “fraud rings”, these groups operate very similarly, differing slightly depending on their particular fraud activity.
In this post, we’ll deep dive into identity fraud rings. We’ll explore their financial impact, how they operate, and we’ll take a look at the strategies that you can use to protect your business from them.
Traditional financial institutions and FinTech businesses are dealing with increased online fraud, and with stringent regulations that have driven compliance operational costs up. In 2014, for instance, 62% of companies were targets of payment fraud, and compliance fines by regulatory bodies in the US account for more than $10 Billion.
Everything from innovation to transaction volume is rapidly increasing in the digital world. And as transaction volume goes so does fraud, money laundering and the cost of regulatory compliance.
The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC), recently updated the Anti-Money Laundering regulation applicable to Financial Entities (FE's) that need to validate customers in Canada. Below is a breakdown of the changes to existing regulation for Identity Verification and for politically exposed person (PEP) screening.