From biometrics to unified case management, Jumio AML white paper argues for end-to-end approach
End-to-end solutions taking in biometric authentication and providing a holistic view of risk and transactions represent a new opportunity for financial services companies to meet increasingly complex compliance obligations, according to a new white paper from Jumio on anti money-laundering compliance.
‘The Dawn of end-to-end AML Compliance’ reviews the elements of compliance to the important international standard, which takes in not just AML screening, but also know your customer (KYC), transaction monitoring, and investigation and case management processes.
The history of AML only began in 1970, Jumio points out, and its evolution has created major hurdles for firms in the form not just of meeting the requirements, but tuning their processes so they can do so without turning away many legitimate customers. Finding a way to do so without overburdening teams is an extra challenge.
The white paper runs down some of the fines handed out for AML violations, including several of over a hundred million dollars. Jumio also points out that AML compliance fines doubled from 2018 to 2019, and are on pace to increase again this year.
Jumio reviews the key ingredients of KYC, including facial authentication with a selfie biometric check against a validated ID document, liveness check, and in the case of its own technology, an instant and definitive yes or no answer. AML screening includes checks of sanctions, politically exposed persons, and adverse media databases.
Transaction monitoring is another key tool in preventing money laundering and terrorism financing, and involves assessing historical and current customer information and transactions, beyond deposits, withdrawals, and wire transfers, to build a complete picture of their activity, which Jumio provides detail on. When suspicious transactions occur, financial services entities are required to confirm that no illegal activity has taken place or make a regulatory filing such as a Suspicious Activity Report.
Case management is the analyst review and investigation step in the process, and Jumio explains how these processes are carried out, and the key ingredients for doing so.
The acquisition of Beam Solutions’ AML platform in September gave Jumio the final tools necessary to build an end-to-end identity verification and compliance solution, which the company says is the first of its kind. Jumio VP of Global Marketing Dean Nicolls explained in an email to Biometric Update at the time that the integration of Beam’s technology into Jumio’s KYX platform enables regulated organizations to use data collected during onboarding and customer due diligence in AML and transaction monitoring, and take a holistic approach to risk mitigation and compliance.
“Now, firms can use Jumio’s KYX Platform to manage compliance throughout the entire customer journey, from onboarding to ongoing customer due diligence, transaction monitoring, case management and reporting,” according to the white paper.
With financial crimes and regulations both increasing and becoming more complex, the arrival of end-to-end compliance gives regulated entities a way to address compliance challenges with a secure and unified platform, the white paper states.
Jumio recently announced a record quarter for sales and volume of biometric transaction verifications.