KYB & AML: What is KYB in the AML process?

In this article:

• UK planning 'Smart eGates' at airports, relying on facial recognition, eliminating the need for physical passports. Trials set for this year.
• New eGates access biometric data remotely, making physical passports redundant.
• Dubai Airport's 'Seamless Travel' and global trends align with the UK's move towards facial recognition in identity verification.
• The UK experienced increased acceptance of remote identity verification, driven in part thanks to COVID-19. Over 60% of consumers are willing to use facial recognition for verification.

The Dawn of "Smart eGates": Revolutionizing Border Control‍

According to a story recently published by The Times, the UK will take its first step towards creating a truly “Intelligent Border” with the adoption of AI-driven ‘Smart eGates’ at airports.

Set to be trialled as early as this year, the units will negate the requirement for travellers entering the UK to present a physical passport, instead relying solely on Facial Recognition technology to confirm those crossing the border are who they say they are.

Global Trends: Biometrics Transforming Travel

The use of this technology is of course not entirely radical. Current airport eGates already take advantage of your biometrics, only they access them by decrypting the chip embedded within your passport before comparing the obtained data with a live image of you when you peer into the camera.

The newer, or should I say “Smarter” eGates, will instead access your biometric data remotely via a centralised database, rendering the physical passport surplus to requirements.

The UK isn’t alone. As well as in some Australian airports, Dubai International Airport will soon roll out ‘Seamless Travel’ for its residents, leaning on the reliability of Biometrics to enable residents to breeze through the tiresome immigration process “in as little as five seconds”.

Facial Recognition in the UK: From Everyday Life to Airports

Although the UK will not likely extend its use of Face Rec to the degree Dubai and other Middle Eastern countries intend to just yet, (soon you’ll be able to buy your duty-free using only your face!), this change in how we travel is really just an extension of how Identity Verification (IDV) using biometrics is already being embraced and trusted by UK citizens.

Facial Recognition – that is, the unique measurements between various points on your face – has been in use in the UK in various forms for a number of years already, and not just by the police. In fact, UK providers of IDV are some of the world’s leaders in this field.

Embracing Change: UK Consumer Attitudes and Industry Shifts

The Covid-19 pandemic illustrated how far UK providers of IDV tech had come along in recent years, with many of us using their technology to seamlessly confirm our identities remotely using Facial Recognition and biometrics when thrust into lengthy lockdowns. Even when stuck at home for months on end, not much was out of reach for UK consumers.

It’s no surprise then that the news of passport-less eGates will likely be seen positively across the country. Research suggests that as a nation, we’re embracing this exciting tech faster than any other: According to biometricupdate.com, over 60% of UK consumers have expressed a willingness to be verified in this way, and that’s growing significantly.

Closer to home at FullCircl, we’re also seeing the shift. We’ve witnessed first-hand many of our clients, including banks and major insurance providers, modernise and fortify their approach to onboarding by adopting document verification and facial recognition checks when dealing with customers remotely. You can read more about how we help businesses onboard customers here. 

It’s clear to see that as a nation, we’re already embracing Facial Recognition in our everyday lives, and we’re already enjoying the benefits it can bring. I believe extending this to the airport is a natural step, and one I believe the UK will not only welcome, but raise the standards in.

On 6^th December 2023 our CEO Andrew Yates was interviewed by InfoPro Digital’s Insurance Content Director Jonathan Swift. Together they took a deep dive look at our recent SmartBroker Acturis Integration, including:

• How FullCircl is helping brokers tackle their biggest challenges -  from data capture and quality, to underinsurance, compliance and regulation
• The SmartBroker development journey and it’s integration into Acturis
• Our exclusive Acturis-ready SmartBroker facility for BIBA members
• What the insurance industry can expect from FullCircl in 2024 - including new data interrogation capabilities, identity verification, and a unified monitoring tool.

You can view the full interview here.

The smart approach to driving even greater value from Acturis

SmartBroker provides next generation data enrichment to Acturis users, proven to drive growth, improve decisioning, and enhance compliance. By integrating FullCircl SmartBroker into the Acturis platform brokers and insurers can:

• Efficiently identify and win new customers
• Save time and pre-populate forms in Acturis with validated data
• Run screening and onboarding checks
• Enrich customer data to save time and improve underwriting submissions
• Improve in-life monitoring for personalised experiences, elevated renewal rates, and expanded upsell opportunities
• Improve customer outcomes and comply with the Consumer Duty

Want to see it in action?

We’re thrilled to bring you another product update. This time, it’s all about a new, fresh design and the ability to customise and download company and credit reports.

A fresh new look

When you first log in to your account, you’ll immediately notice a change. Our new design is more than just a visual upgrade; we’ve also improved the navigation to ensure you can find what you need quickly and efficiently.

Custom company and credit reports

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In our latest release, we’ve revamped our approach to company reports. We’ve improved the design and format to make them more visually appealing and easily downloadable. What’s more, we’ve expanded the scope of our reports, allowing you to include more of the information we hold on companies, to provide a more comprehensive view. That’s not all; you can now select the content you want to include to tailor your reports to your specific requirements and get the insights that matter the most.

‍‍‍Ready to explore these features?

Simply log in to your account, and you’ll find the updated design. To create custom reports, click the new download report button on the company profile page and customise your report.

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Coming soon: Find Companies with enhanced UI and powerful new search capabilities.

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We’re improving our prospecting tool to help you save time and uncover opportunities like never before. By streamlining search and expanding options to filter, the new search interface helps customers identify companies that fit their specific criteria in less time and with greater flexibility.

New features will include

• Advanced search filters
• AdditionalBoolean criteria
• Customised results table
• Team collaboration
• Intuitive new design

Stay tuned for further updates on Find Companies as we continue to refine and enhance your experience.

‍W2 by FullCircl

You may have seen that in August 2023, FullCircl announced the acquisition of identity verification platform provider, W2. We’re really excited about this next phase of growth for FullCircl and W2.

Next, let’s take a look at what’s new in the W2 platform.

Monitoring updates

Within the latest round of enhancements, some significant UI changes have been made to W2’s AML re-screening functionality. The new additions are designed to make the analysis of monitoring performance more efficient, providing a new level of depth.

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Upon entry to the monitoring dashboard within W2’s portal, the new functionality allows customers to instantly see a snapshot of their monitoring performance and identify any open alerts which require remediation.

We’ve also made improvements to both the alerts and records aspect of monitoring. Alerts and records are now much easier to consume, and we’ve also added numerous filtering options to ensure you can find exactly what you’re looking for.

Coming soon: W2 white labelling

We’re currently working on anew proposition to market. W2’s white label will give clients the ability tore-brand the W2 portal and obtain their own environment, including URL, for W2’s products.

The white label allows clients to access a custom branded identity verification platform without having to invest in developing their own version.

It ensures customer compliance, avoids the complexity of dealing with multiple supplier contracts and integrations, opens additional revenue opportunities, expands their proposition, includes full training, and provides access to a support team.

To explore our latest release, or learn more about our services, schedule a demo to see how these new features will empower your business through comprehensive data and actionable insights.

The Economic Crime and Corporate Transparency Act 2023 (ECCTA) came into force on 26th October 2023, after the Bill of the same name received royal assent.  

The ECCTA strengthens the UK’s efforts to combat economic crime via a wide-ranging suite of reforms.  These include new and enhanced powers for Companies House to scrutinise information provided by companies and their directors.  In addition, there are new offences for failure to provide information or make false statements, as well as new routes for the Serious Fraud Office and National Crime Agency to attribute corporate liability through the introduction of a failure to prevent fraud offence.

Let’s focus on Companies House…

Companies House Reform

Companies House has undergone the biggest shake up in its 180-year history, turning it from a largely passive recipient of company information to a much more active gatekeeper.  It now has enhanced abilities to verify the identities of company directors, remove fraudulent organisations from the register, and share information with criminal investigation agencies.  

More specifically, the reforms include:

• Identity verification of all new and existing registered company directors, People with Significant Control, and those delivering documents to the Registrar.
• A requirement that those forming or running companies supply additional information in relation to material they file with Companies House.
• The ability for the registrar to and query and/or reject information already on the register identified as potentially fraudulent, suspicious or might otherwise impact on the integrity of the register or wider business environment.
• Proactive sharing of all information held by Companies House about any entity with law enforcement, regulatory bodies, and other public authorities either to assist in carrying out its own functions or to assist a public authority with the exercise of its functions.
• Discretionary powers to remove material from the register, change the address of a company’s registered office, and take action against those persistently failing to provide an appropriate registered office address.

What happens next?

The provisions of the ECCTA will come into force under a phased approach to allow companies, and Companies House itself, time to prepare for implementation.  

However, Companies House has noted that, whilst some of the measures in the ECCTA will need processes to be developed and secondary legislation before they can be brought into force, other measures can, and will, be brought into force sooner.  

In early 2024 we can expect early-implementation measures to come into force including the power to query or reject information filed with Companies House, revisions to the company names regime, and the requirement for companies to provide the registrar with an email address.

What does this mean for FullCircl customers?

We are excited about the ECCTA, and specifically the reform of Companies House, and the impact it will have in terms of greater transparency, accuracy, and reliability of data.  After all, the more reliable the data, the more valuable our tools, applications and business logic become – helping our customers identify & acquire customers, verify and onboard them quickly, and retain and grow relationships for the long-term.

Customer Lifecycle Intelligence is not static data - we deliver a multi-dimensional view that combines advanced data ingestion, validation, data matching, and augmentation with real-time sanction, PEPs, adverse media screening and more.  All neatly delivered via web app or API.  

Whether it’s automated data collection and critical checks, ensuring compliance, confidently targeting the right customers, or growing advocacy through frictionless onboarding and support, FullCircl’s SmartBanker solution is helping the UK’s leading banks and financial service providers to:

• Minimise the time spent gathering management information
• Identify the business customers that fit their organisation's risk appetite
• Enhance the ability to proactively engage with customers.

If you have questions about the potential impact of the Economic Crime and Corporate Transparency Act and how to stay ahead of implementation, or if you would like to experience SmartBanker’s capabilities get in touch with a member of our team today.  

It’s been a tough few years for SMEs. The cost-of-living crisis and threat of recession followed hot on the heels of the Covid pandemic pushing many SMEs into recovery mode, with many more at real threat of going under.

The Covid loan scheme offered some respite and the opportunity to access finance more quickly. But in 2023 with repayment of these loans looming, and a wider backdrop of rising costs, high inflation, rising interest rates and supply chain disruption, the pressure on SMEs has only intensified. No wonder they are declining at a rate of 6.5%.

Access to finance is a major problem for SMEs. In fact, the sector currently has unmet finance needs of approximately $5.2 trillion, 1.5 times the current lending market. Alongside the rising cost of debt, there is a growing concern that bank lending criteria is preventing SMEs from accessing the finance they need. Nearly one in three SMEs recently identified working capital and cash flow management as a reason for requiring external finance, but only 45% of respondents felt confident they would be able to secure that finance from their bank.

If banks fail to respond, the consequences are potentially catastrophic. After all, SMEs account for 99.9% of the business population, and around half the turnover of the UK private sector.

An opportunity as yet unrealised

Unmet needs are opportunities for new value creation. But, has digital transformation in SME banking progressed enough to ensure this sector (and the opportunity it represents) survives and thrives?

Unfortunately, the answer is no.

Lack of insight is a huge stumbling block.

The volume and variability of SME businesses makes it difficult to create banking services that meet diverse needs and deliver personalisation at scale.

A new way forward

A new KYC approach is required, one that is rooted in fast, comprehensive, and real time Customer Lifecycle Intelligence. In our latest whitepaper we investigate what this new approach really looks like in practice.

Download your copy now and learn:

• The market trends impacting SME banking
• What SMEs want from financial service providers
• What the modern SME banking ecosystem looks like
• The path forward

The Russian invasion of Ukraine in February 2022 led to an unprecedented number of new sanctions against individuals, groups, and entities.  But it was not only the scale of the sanctions, issued by multiple regulators, but the speed with which they came into force that created an extremely complex environment for financial institutions (FIs), who have been racing to keep pace ever since.

Similarly, identifying and managing Politically Exposed Persons (PEPs) is increasingly complex due with regulators amplifying the need for vigilance.  Importantly, the FCA is currently undertaking a review to assess how regulated businesses are complying with their legal and regulatory obligations regarding PEPs.

Major national and international events can quickly prompt revisions to PEPs and sanctions lists targeting countries, businesses, groups, and individuals, as well as the level of restrictions imposed on them. In August 2023 the UK government announced a range of new sanctions against Iranian individuals and entities, and following the recent attacks on Israel it’s conceivable that we will see a new raft of sanctions targeting groups such as Hamas and Hizbollah.

How have FI’s responded so far?

It turns out, the response has not been that great actually!  According to new research from SmartSearch only 36% of challenger banks have made changes to compliance procedures to screen for PEPs and sanctions since the start of the conflict in Ukraine. And whilst fairing a little better, 40% incumbent banks still have not taken additional precautions.  

Whilst failure to keep up with PEPs and sanctions changes can lead to inadvertently facilitating money laundering, fraudulent activity, and illegal transactions, it can also run the risk of substantial fines and severe reputational damage.  According to Fenergo, in 2022 alone FIs globally were penalised to the tune of $4.2 billion due to breaches of Anti-Money Laundering (AML) regulations. A 52% increase from 2021 which brings into stark relief the scale of the challenge facing financial institutions right now.

It is crucial for FIs to conduct thorough screening checks and due diligence through the customer lifecycle – from identifying and acquiring new customers, through verification and onboarding, to retaining customers and growing relationships.

But it’s not just the changing PEPs and sanctions lists that are tough to navigate, it is equally difficult to untangle the complex hierarchical structures surrounding them.  Increasingly complex corporate structures and fragmented ownership data obscure a complete view and prevent organisations from effectively assessing risk. Not only does this pose challenges to meeting regulatory requirements, but it also impacts the customer experience.

Time for some good news…

Digital solutions can help simplify the complex PEPs and sanctions landscape and make it easier to navigate.  Here’s how:

• Automated screening - Realtime global coverage to pre-screen for political exposure, sanctions, and adverse media to ensure that your customers are not involved in any illegal or prohibited activities.
• Graph data visualisation – Recognise the connections between directors, shareholders, and group companies up to the Ultimate Beneficial Owner and understand any risks associated with the people you do business with.
• Identify verification – verify identify in real time with automated document verification and facial comparison technology.
• Perpetual KYC- Event-based alert notifications of changes to watchlists, financial and credit information

The even better news…get smarter on PEPs and sanctions

SmartOnboard from FullCircl is the industry’s comprehensive compliance platform, accelerating customer screening while enabling FIs to better manage risk throughout the customer lifecycle.  Features include:

• Customer onboarding checks: Onboard business customers up to 94% faster with automated KYC, AML, and credit checks.  
• Ongoing screening: Screen customers at any time to ensure information reflects current circumstances when reviewing customer products or internal risk appetite.  
• PEPs, sanctions, and adverse media: Get access to PEPs, Sanctions and Adverse Media with categories aligned to the latest FATF recommendations and a 70% reduction in false positives.  
• Ownership and UBOs: Understand company ownership structures and beneficial owners to help improve customer onboarding, reduce risk, and meet regulatory requirements.  
• Credit & Risk: Assess a customer’s creditworthiness and financial health. FullCircl provide credit reports, credit scores, and other critical financial indicators to help you evaluate the customer’s credit worthiness quickly.  
• Monitoring: Event-based alerts notify you of any changes in critical financial information held on the companies in your watchlist.

Book a demo and find out how FullCircl can help you onboard customers faster and manage risks smarter.

Or, why not join FullCircl and our partners at ComplyAdvantage on 2^nd November for our interactive webinar, and get prepared to tackle the PEPs challenge.  Join our expert panel as we discuss:

• Why there isn’t a globally agreed definition for PEPs and the methodologies that can be used to define them.
• How adopting a data-driven approach to deliver a more layered solution for PEP screening empowers risk-based decision-making.
• Best practices to assess PEPs’ family members, known associates, businesses, and their transactional relationships.
• How to investigate relationships and financial interactions to identify broader patterns of sanctions evasion and political corruption.