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How to validate identity and AML for online purchases

October 25, 2018

It hasn’t always been the case, but today consumers of all sorts of products and services have a lot to choose from. This intensely competitive market (and empowered consumers) forces businesses to redouble their efforts to win over users. Sometimes, in fact, it forces them to ‘gild the lily’.

This is the case of online purchases: apps have to combine guarantees of security, compliance with rules and regulations, speed and ease, and all without sacrificing user experience. For business people who are already thinking about foregoing Internet sales, we have good news: our Identity Verification Engine has all of these characteristics (secure identification that complies with AML requirements, curbs fraud and boosts conversion thanks to its good user interface).

Complying with national and international regulations

Let’s start off with the importance of complying with regulations to prevent money laundering. AML is the commonly used acronym for the term Anti-Money Laundering. The fight against money laundering is being fought globally. In Spain, there are two main laws that regulate vigilance to prevent criminals from laundering their illegal income: the Law on the prevention of money laundering and terrorism financing (LPBC/FT from 2010), with regulations in place since 2014.

This battle involves financial entities (both traditional ones and others that now offer and act as intermediaries in financial operations) and, by extension, any companies that allow customers to do things like paying for products online. Although we’ve mentioned that there are laws that have been in place for some years now, the pressure on organised crime and new regulations (for example, the EU PSD2) have led to further strengthening of processes like customer identification, KYC (Know your Customer) and anything related to detecting and notifying the authorities of any suspicious activity. So, any company interested in selling and accepting payment online needs tools that effectively, automatically observe this whole legal framework.

Identity Verification Engine: simplifying user identification

As we were saying, any solution for identifying users must comply with regulations in force without slowing down the purchase process (which could turn customers off). The Unnax Onboarding Engine complies with AML requirements by sending and checking (quickly and automatically) user data against the SND lists (EU and US OFAC). These lists are updated periodically and contain individuals and legal entities suspected of illegal activities associated, for example, with drug trafficking and terrorism.

During the identification process, the consumer doesn’t even notice this operation that is taking place at the same time as they are accessing the company website and doing the financial process. They perceive the process and simple and quick, but the company can check, at any time on the control panel, that the person is who they say they are and is not on any of the ‘blacklists’. This way, several goals are achieved at the same time: new customers are incorporated (and validated) quickly and easily, verifying their identity in just seconds; by reducing registration and identification time, churn rates drop and conversion rates rise; and proper verification of users’ identity prevents the company from being a target of fraud.

Simple to use and adaptable to your company’s growth

We’ve mentioned the control panel, whose great advantage is that it provides data in real time and allows you to see and administer customer payments, accounts, subscriptions, transfers, etc. This way, thanks to the information from the Onboarding Engine, we can make better business decisions (with data in hand instantly). Finally, it is worth noting that our solution (tested by our clients around the world) is prepared to grow with your company, adapting to your pace and needs.

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