"verification of the identity of the customer and the beneficial owner take place before the establishment of a business relationship or the carrying out of the transaction"
Nicosia, Cyprus (PRWEB) October 19, 2015
Anti-money laundering regulations get tighter with the coming into effect of the 4th EU Anti Money Laundering Directive. Regulators have now been addressing amongst others that practice among online financial services markets of allowing customers to start transacting and trading before ID authentication and KYC/CDD processes have been completed. These customers were activated “conditionally”, allowing them to starts transactions and trading but enabling them to withdraw money only after AML procedure is concluded. This practice was designed to avoid customer drop-out due to lengthy and arduous identity authentication and qualification procedures. Fortunately, tightening regulations coincide with the availability of the AU10TIX BOS 2nd generation ID authentication technology that enables immediate, frictionless compliance procedure.
AU10TIX draws attention of risk and compliance managers in particular to 2 new regulatory requirements are particularly game changing:
1. ID authentication must take place BEFORE any business relationship
According to Article 14.1 of the 4th EU Money Laundering directive: “Member States shall require that verification of the identity of the customer and the beneficial owner take place before the establishment of a business relationship or the carrying out of the transaction”.
2. ID authentication must be done with EXISTING customers and not just NEW customers
According to Article 14.5 the directive mandates that: “Member States shall require that obliged entities apply the customer due diligence measures not only to all new customers but also at appropriate times to existing customers on a risk-sensitive basis, including at times when the relevant circumstances of a customer change”.
See: http://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=OJ:JOL_2015_141_R_0003&from=ES
4th EU AML regulations put many online financial services providers such as Forex and trading companies in immediate violation. This stirred a surge in search for technology solutions that enable quick, effective compliance. AU10TIX which offers the only 2nd generation ID authentication and record generation technology on the market reports a 300% increase in incoming inquiries and shorter decision cycles than before.
“Everyone knew it was coming and here it is,” says Ron Atzmon, Managing Director of AU10TIX. “We are lucky to have the only 2nd generation technology on the market. It is also simple to implement and it provides a perfect solution for existing customer bases. Even massive ones."
“1st generation ID authentication solutions will fail the regulator’s scrutiny,” says Ofer Friedman, VP Marketing of AU10TIX. “It is not enough to OCR data from ID images and check the it against referencing sources. Who says that ID is genuine and not forged? What do you do with low or no-digital footprint customers? What do you do with customers coming from countries where data referencing is not available? We are heading towards a brave new world of multi-factor ID authentication, and it all starts with the governments issued face ID. That’s where you lose most of your prospects. That’s where your overhead hurts. And that’s where you need a technology that does it fast, frictionless and deep. That’s why we have to many POCs going on nowadays.“
About AU10TIX
AU10TIX Limited, a fully owned subsidiary of ICTS International N.V, deals with the authentication and digitization of identifying documents including Passports, identity cards, driving licenses and other complementary identifying documents. The company specializes in implementing hardware & software based applications used for scanning, identifying, content retrieval, authentication and validation of identifying documents. AU10TIX is a pioneer of all-channel (front-end and online) ID authentication and processing solutions. The company's products drastically reduce identifying document-based fraud, reducing the costs associated with client processing and enabling effective regulatory compliance, while making the sales and support operations speedier and considerably more efficient.
For more information, visit http://www.au10tix.com
About ICTS International N.V.
ICTS specializes in the development and implementation of innovative security concepts and solutions designed to meet the needs of a variety of industries, mainly aviation transportation, border control and sensitive facilities. ICTS International benefits from over two decades of expertise and international operational experience in transportation security, with a particular emphasis on high-risk environments, passenger processing transactions and the integration of security services to provide a comprehensive security solution. It also offers a wide variety of customized training programs, tailored procedures and a wide range of security consulting services. The company has developed and implemented unique technological solutions, based on its comprehensive approach to security, designed to enhance the level of security while accelerating the security check process.
For more information, visit http://www.icts-int.com
This press release contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, regarding the Company’s business strategy and future plans of operations. Forward-looking statements involve known and unknown risks and uncertainties, both general and specific to the matters discussed in this press release. These and other important factors, including those mentioned in various Securities and Exchange Commission filings made periodically by the Company, may cause the Company’s actual results and performance to differ materially from the future results and performance expressed in or implied by such forward-looking statements. The forward-looking statements contained in this press release speak only as of the date hereof and the Company expressly disclaims any obligation to provide public updates, revisions or amendments to any forward-looking statements made herein to reflect changes in the Company’s expectations or future events.
Contact:
AU10TIX
Ofer Friedman, VP Marketing
Email: ofer(dot)friedman(at)au10tix(dot)com
Tel.: +357 (22) 007698
ICTS International NV
Alon Raich
Email: mail(at)ictsinternational(dot)com
Tel.: +31-20-716 3421