“Your ID is not valid for passing through this security checkpoint.” 

Those are the words some travellers will hear beginning October 1, 2021 at airports throughout the United States.  The reason: those travellers will hold state-issued IDs that do not comply with the new Real ID standards.

What is Real ID? And how would you know if your ID is compliant?

"The REAL ID Act establishes minimum security standards for license issuance and production and prohibits Federal agencies from accepting for certain purposes driver’s licenses and identification cards from states not meeting the Act’s minimum standards."

The above is taken from the website of the Department of Homeland Security, and says it better than we could. In short, the driver's license or ID card an American citizen carries, must comply with Real ID standards after October 1st 2021, or it can't be used for certain purposes. The most important of these being as the ID document they use to board in internal flight within the US.

You'll know if your ID is compliant if it features one the 5 distinctive star markings in top right of your card:

Is it time for states to look at Real ID compliance?

Lately, the discussion surrounding identity verification - IDV - has mostly focused on meeting the requirements required for the California Consumer Privacy Act. But identity verification is important in other areas. One of these is the Real ID program.

Real ID began life as a response to the 9/11 attacks in the United States. There was concern that the process for issuing IDs and the lack of certain security features on the IDs themselves might allow potential criminals to evade security checkpoints. In response, the law was enacted that imposed standards on state issued IDs in order for those IDs to be valid for US government purposes. Real ID is the result. 

A person using a state issued ID to enter a US government facility, enter a nuclear power plant, or - most importantly to the public - board an airplane, subject to US government regulations, must have an ID that meets Real ID standards.  That means if you use your driver's license to pass through airport security after October next year, it must comply with Real ID.

Almost all states already issue IDs that meet Real ID standards already. So the potential challenge is not the failure of states to issue compliant IDs. The problem for many is that the state ID that they have was issued prior to state compliance with Real ID standards. The challenge for states will come in the next year when millions of people realize they do not have an ID that will let them pass through a TSA checkpoint, and go to the state driver's license office for a new ID! A huge surge in applications for new driver's licenses has the potential to overwhelm these state agencies.

How could Veriff help states handle the demand?

One requirement for an ID that meets Real ID standards is that the issuing office - the driver's license office - must verify the identity of the applicant. Most, if not all, states already do this - manually and in person. This takes several minutes for each applicant, and if that person does not have the correct documentation, another visit to the driver's license office is required. All of this takes time, and as everyone knows, time is money.

Veriff offers states a solution. Applicants can verify their identities before arriving at the driver's license office or even at the office using their mobile device. Just like other companies that use Veriff, the driver's license website could send the applicant to Veriff and then the agency would have electronically documented verification. Veriff's process complies with the verification standards for RealID, and Veriff can provide required support for the state's certification that it complies with Department of Homeland Security regulations.

For states trying to plan how they will verify millions of applicants for new driver's licenses, let Veriff offer you a solution!

Real ID standards will soon come to dictate whether US citizens can travel freely within their own country. As some states lag behind in issuing compliant IDs to all of their inhabitants, how could Veriff help them?

What is Real ID and why is it important?  

Another month brings more fresh updates from every aspect of Veriff’s product, and for the first time ever, we’ve added information about our supported documents and the new ones we’ve welcomed this month. So, let’s get into it!

It may not be a change which has happened quite yet, but we’re A/B testing an awesome new verification interface on the web, so your clients might be seeing it soon.

We’ve also added mandatory mobile fallback in our desktop verification flow, so your clients will have the option to get verified using their phone if, for some reason, they can’t do it via their computer. This is going live on a client by client basis, so if you don’t see it yet, it's on it's way.

You’ll see an update in your Station interface, as we’re now showing you when every user session will be archived, in accordance with our data retention policy. We’re also sending our ‘Unique identifier’ field with event webhooks, by popular demand.

Finally, in case you’re still using our old back office, you’ll be migrated to Station very soon, and you don’t need to do anything at all.  

Last, but by no means least, we welcome the newest section of our product updates - our supported documents update.

We’ll start supporting 2 new documents from 10th August onwards:

El Salvador Residence Permit - Issued by the General Directorate of Migration and Aliens

Cook Island Driver's License - Issued by Cook Islands Police Service

According to Google Maps, it would take you 1 day and 11 hours to get from El Salvador to the Cook Islands. That’s some journey - and Veriff is happy to now be supporting residents of both countries in getting verified online easier than before.

As always, follow us on social media for more up-to-date news - Facebook, LinkedIn, Twitter, and Instagram - and get in touch if you have any questions at all. Happy Veriffing!

It’s time for more exciting product updates - here’s what’s been going on at Veriff in July.

What’s New - July 2020: Veriff Product Update

First of all, thank you for taking the time to talk to me today. To get our readers up to speed, could you first tell us a bit about yourself? For example, I know you’re originally from Georgia (the country). What brought you to Estonia?

You may or may not know, but there’s a pretty tight relationship between Estonia and Georgia. Estonia is kind of advertised as a powerhouse of technology in Europe. In particular university fairs that came to Georgia to promote Estonian universities (specifically Tartu University in my case) was the real decision maker. The opportunity to study and work alongside tech innovators was a pretty big selling point for me. 

Ilia Aphtsiauri at Veriff. Photo by Jake Farra. 

That’s great to hear that there’s a connection between the 2 countries. It seems like in Estonia, Georgia’s advertisement is more about visiting rather than studying.

Yes, and right now is actually a good time to visit in regard to a lot of the restrictions surrounding travel to other countries. In fact, as a tourist, it would probably be easier for you to travel there than it would be for me – considering quarantine measures, etc. 

You came here originally to study at Tartu University, how long ago was that?

It was 6 years ago, in 2014, that I came to get my Master’s in Software Engineering (I had finished my Bachelor’s in Georgia). Interestingly enough, when applying for jobs and putting down that I studied in Georgia, several people thought I meant the state rather than the country – for better or worse, I’m not sure.

Now that we know the why of how you came to Estonia, how did you first come across Veriff and what in particular attracted you to the company?

During my time at Tartu University, I was finishing up an internship and looking at current options when I stumbled upon a good example of Facebook advertising – an open position at Veriff. I opened up the job posting and saw all of the technologies they dealt with were ones that interested me and the webpage itself looked nice. Oddly, when I went to research more about the company, there was almost nothing at all to be found (Ilia says with a smile). Regardless, I still sent my CV and scheduled an interview - which accidentally ended up being via a Skype call while I was on a ski slope because I mixed up the days. During the unconventional interview, the full idea and mission statement were explained to me and it seemed to be something perfectly suited for me.

When you started, you were one of the first on the team, correct? Sort of when Veriff was still in the idea stage.

Right, Veriff was quite small at the time that I joined. In fact, on my first day I came to the office, which I thought all belonged to Veriff, only to find that Veriff at the time was basically just a table in one corner of the building. Veriff was my first startup, so I wasn’t quite prepared for this, but I quickly fell in love with the ability to shape the company that comes with it being a startup. 

Startup life at early Veriff days. Photo by Ilia Aphtsiauri.

How has your experience in the company been so far?

I guess you could best describe it as a rollercoaster. We were initially extremely excited to get things going but struggled to get clients in the beginning. We went through a series of different projects and ideas, each one failing…until we finally started to pick up clients. When that happens, your emotion peaks and you realize all the hard work you’ve put in was worth it. From there, we would just continue to expand, moving from just the Baltics to quickly dealing with companies internationally.

Travelling with friends. Photo by Ilia Aphtsiauri.

You’ve been with the company for 4 ½ years. Are there any particular changes you would like to expand on during your time? Office moves? Personnel changes? Etc.

The biggest change is getting new people, but at the same time it seems like everyone we’ve been able to bring in always fits the culture. Moving from 4 to 200, there almost seems like there’s been no change. This is something I certainly find fascinating. Something I’m proud of us for achieving and maintaining. 

Going back to Georgia, how was living around Tbilisi? How would you compare it to living in Estonia?

Well, something more obvious is how much more emotionally open people are in Georgia compared to Estonia – sometimes maybe too emotionally open. Also, and maybe it’s just because I live in a bit of a tech bubble, but compared to Georgia it seems like things are politically much more at ease.

Perhaps the biggest shock was the difference in the relationship with neighbors. In Estonia, you don’t really talk to your neighbors, but in Georgia you can easily go to your neighbors for a favor or just go over for a chat – it’s odd to not have that kind of connection here.

After over 4 years, do you feel like you’ve become involved in the tech scene here in Tallinn?

Honestly, it’s something I would like to be more involved in than I am now. I would love to be able to contribute more to the startup scene, helping to share the knowledge I’ve learned and mentor others in achieving their goals.

I hear you’re a pretty competitive person and keen on skiing. How has living in Estonia impacted your skiing habits?

When I first came to Estonia, I knew it was in the north and that it would be colder, but I never really thought about the fact that it would be so flat. Before coming here, I couldn’t imagine living somewhere where there’s no mountains to be found. As soon as I was accepted to Tartu University, I looked up “Estonian ski resorts” and was astonished when I found out there was none to be found. For a brief moment, I started to second guess whether or not attending Tartu University was worth it.

Skiing in Mestia, Georgia. Photo by Ilia Aphtsiauri. 

Do you have a chance to go back to Georgia or other places to ski?

Yeah, I go back to Georgia at least once a year, but I recently ruptured my Achilles while playing basketball, so no sports for me until around winter.

Looks like we’re coming to the end of the interview, which means it’s time for the ‘quickfire’ questions. Ready?

What book is a must read for you and why?

One book that I was really impressed with was “All Quiet on the Western Front”. The way it ends leaves such an immense emotional impact on me. 

Currently I’m listening to “Dark Net Diaries” which is about hacker stories presented in a very interesting way. The host does an excellent job of describing the entire scenario of stories.

If you weren’t an engineer, what would you be?

Well, my original plan was to be a professional tennis player, but that didn’t pan out so… perhaps a wine maker.

And the last question. What is the best advice you’ve ever been given?

That’s tough, but one of the best pieces of advice that I have heard (not given directly to me) was from Nelson Mandela about how everything you do should come straight from the heart.

On an uncharacteristically chilly/rainy day in July, I had the chance to interview (via Zoom) Ilia Aphtsiauri, one of the founding engineers in Veriff.

Everything you do should come straight from the heart

GDPR can be considered as the strongest set of rules for personal data protection. Following various rules and regulations can sometimes be considered quite a task for even the biggest companies. With this responsibility to be compliant, companies should always remind themselves that even though the devil is in the detail, company values and the basics of data protection always provide the guiding light even during the biggest challenges.

As consent is one of the legal grounds of data processing, getting all the aspects correct can be tricky. We would like to emphasize 2 conditions, which may be the turning points of getting a valid consent. 

Firstly, freely given – while providing a service, the data controller has to provide real choices how to use the service. 

For example, in the Netherlands, the processing of a BSN number (citizen service number, a unique registration number which is automatically given to Dutch citizens, other residents need to apply for it) can be complicated, because the state authorities in the Netherlands recommend to its citizens to cover the BSN number visible on their document.       

Veriff's identity verification and fraud detection has been built in a way not to verify end-users who are presenting documents which are in any way tampered, or where data on the documents is covered. Therefore, the data controller, who has customers from the Netherlands, has to be ready to introduce alternative methods of verification in order for the consent to be freely given. 

Consent must cover all the processing steps the data controller has in place. It is important to find the balance of giving information in a precise and easily understandable way, with as short wording as possible and not to burden the end-user with legal jargon. Also, expressly mentioning processing of BSN numbers in your Privacy Policy, if end-users are verifying themselves with Dutch documents.

2. Train Train Train - preparation is the key

Composing documents and procedure overviews are essential for GDPR compliance, but at the same time they have to work in practise and be easily implemented and understood by all employees. In order to do that, pressure testing and reviewing procedures in real life may be useful in order to train staff.

3. All Data Subject Access Requests need attention

Data controllers have the obligation to respond to data subject requests regarding their personal data. During the past few months we have seen an increase of requests coming from the Netherlands regarding the processing of their data. Due to the unique situation regarding data protection rules in the Netherlands, it is important to explain that Veriff is a data processor who gets instructions from data controllers and does not decide the extent and methods of data processing. Therefore, all service provider specific processing questions are communicated to our clients as data controllers.

4. Different countries may have different rules regarding what is considered special category data

GDPR article 9 paragraph 4 states that further conditions, including limitations may be introduced depending on a Member State. 

For example, in the Netherlands, the BSN number is considered a special category of personal data. France, Germany and the UK have also imposed national rules about processing genetic data, biometric data or health data, in specific sectors (for example insurance) or for specific purposes.

5. Keep yourself updated with the latest in the privacy field

French and UK data protection authorities provide a lot of useful resources regarding data protection. 

European Data Protection Board also regularly publishes guidelines for general guidance, the latest guideline about consent was published in May. For daily updates, The International Association of Privacy Professionals (IAPP) publishes a daily dashboard about useful privacy news.

Knowledge is power. Let’s use it to create a secure and trustworthy cyberspace!

GDPR can be considered as the strongest set of rules for personal data protection. Following various rules and regulations can sometimes be considered quite a task for even the biggest companies. 

Personal data protection is of utmost importance to Veriff. As the rules and regulations regarding GDPR and data protection keep evolving, we'll keep you up to date with what's happening via a series of blogs. Here's the first - underlining the key points of data protection and how the Netherlands have resolved some data related challenges.

GDPR - The Strongest Set of Rules for Personal Data Protection

Companies across the globe are now evolving to stay competitive not just within their own sectors, but within the digital world as well. We are now in a position where customer interaction takes place online more often than face-to-face and the term ‘customer service’ has never been more complex. 

These same customers are also now becoming much savvier with technology and they are demanding higher levels of transparent security while not compromising on the speed at which they want their needs to be met. 

Digital identity verification is becoming a key part of every organisation’s offering. Without it, seamless and effective security measures simply cannot be maintained or sustained.  

Financial institutions, the banking industry and online marketplaces are usually thought to be the main players that need strong identity verification processes in place. However, many companies in varying and diverse markets are now realising the benefits of robust identity verification and are leading the way in their digital strategy.

Here are 5 reasons your company needs excellent ID verification as part of your digital transformation strategy:

Over the years there have been many different authentication methods that companies have used to determine that their customers are who they say they are. Things like two-factor authentication and knowledge-based authentication have been particularly popular. 

However, the current thinking is that these processes are now antiquated and outdated, and they are now no longer recommended by the National Institute of Standards and Technology in the US.

This is because knowledge-based authentication questions might be easy for users, but the information can easily be lifted from social media, the dark web or other publicly available information. This makes it easy for fraudsters to impersonate whoever they like. Two-factor authentication (like using fobs or SMS services) are also not good enough now as fraudsters have found ways to intercept these processes. 

It is becoming increasingly common for customers to be turned off by these systems and to turn instead to a more technologically savvy service provider. The time is ripe for all organisations to leave these processes behind and choose a new system, otherwise their company will simply be left in the dust. 

Customers may now be operating in a digital rather than physical space, but that doesn’t mean that they want to compromise on service. This used to mean they wanted to be cared for in an efficient and friendly manner but now it means that they want their data to be cared for securely and simply. 

A recent PwC survey highlighted that only a quarter of consumers think that companies look after their data responsibly. 87% also said they wouldn’t hesitate to go to a competitor if they didn’t trust a company to handle their data responsibly.

This means that companies now have three key objectives when it comes to their online service: 

To provide a seamless customer experience that increases conversions

To ensure the customers they are onboarding are real  

The good news is that the latest online identity verification methods (like Veriff’s) do all three of these. These cutting-edge systems are designed to create a transparent and streamlined customer journey that optimizes conversions of real customers while deterring would-be fraudsters and Creepy Toms.

Another factor in creating loyalty is to connect emotionally with a customer and convince them that you care about their wellbeing. They, in turn, will trust you and become powerful advocates. Looking after their data securely is the first step in this process. Neil Bayton, the head of UK partnerships at Trustpilot, says:

“When a customer has that emotional connection with a business, they become an advocate. They not only tell others about the brand, but they want your business to succeed.”

At its most basic level, digitizing and securing the onboarding process for new customers can reduce operational costs. 

This is because the costs of manual verification and security risks are eliminated, while business is not lost through clunky processes and multiple touchpoints.

You would think that financial institutions would be the most knowledgeable about this, but banks all over the world are still facing billions of dollars in losses every year because of inefficient or incomplete KYC (know your customer) processes. Using automated identity verification services avoids this because document and ID verifications are done efficiently in real-time.

Not only does modern identity verification help you create cost efficiencies, but it may also save you money because it can help you avoid costly fines

As an example, early in 2019, Standard Chartered was fined $1.1 billion by US and UK authorities for poor anti money-laundering (AML) controls. Companies that ensure that their identity verification systems are resilient to attack lower the risk of potential illegal activities on their platform. 

Regulation compliance is something that companies cannot avoid. In more than 90 countries worldwide there are now stringent compliance regulations that state it is mandatory to verify customer identities and keep identity records.

These regulations are created to reduce online fraud, data breaches, cyberattacks, and identity theft. In general, they refer to the way in which data is collected, how it should be protected, and how the processes should be monitored properly. 

One example of such regulation is the General Data Protection Regulation (GDPR) which is an EU law for citizen data privacy and protection. According to this law, any company that fails to comply with the GDPR requirements will be subjected to harsh fines and is likely to suffer from heavy reputational damage as well. 

As these stringent measures to prevent fraud by governments and trade bodies are always evolving, it is essential that companies aren’t caught out by the regulations. One way of doing this is by working with a provider like Veriff who will stay ahead of the game and are always looking for ways to advance and develop their identity verification services.

5. Prevent exposure to various fraudulent activities

We have saved arguably the biggest reason your company needs excellent ID verification until the end. This is, of course, the objective to reduce the possibility of a data breach or fraudulent activity on your digital platform.

The number of global data breaches has increased exponentially in recent years. This is because fraudsters have worked out increasingly intricate ways to bypass old systems and commit financial crime, identity theft, and account takeovers.

According to a 2018 study, 60 million Americans have been affected by identity theft and in 2019, the global average cost of a data breach amounted to 3.92 million U.S. dollars. Not only does this cause damage to the victims, but it also harms the companies themselves as the trust in their service is irrevocably lost.

This factor alone should leave companies in no doubt that they need to prioritise their identity verification procedures to ensure no loophole is left. The safety and security of their customer data is paramount as we move forward in this digital world.

Customers are now more adept with technology, want greater transparency and won't compromise on speed - so verification should always be a breeze. 

Trust between customers and companies is sacred and hard-earned. Verifying that your customers are who they claim can be a necessity but shouldn't be a difficult step in their journey with you. 

5 Reasons Your Company Needs Excellent Identity Verification

These days our online lives are wholly interwoven with our ‘normal’ lives and one is hard to distinguish from the other. 

The digitalization of the world over the past two decades has been both fascinating and slightly breathtaking at the same time. What was once ‘e-commerce’ is now simply referred to as ‘shopping’, while ‘online-banking’ is now just ‘banking’. Face-to-face interaction is no longer required for life to carry on as normal – the coronavirus pandemic is evidence of this, with most facets of life continuing as before despite the fact we have all been behind closed doors. 

While the digital world offers many advantages and opportunities, one part of life that has become more complex is identity verification. You used to walk into a bank, show an ID and that would be the end of it. This has now evolved so that online services like marketplaces, social media platforms, gaming, fintech, online reviews and cryptocurrencies constantly need to find new and innovative ways to verify their customers. 

This is why the identity verification industry has emerged so strongly in recent years and why it is an inescapable part of our digital world. The identity verification market is expected to grow to be worth an estimated 12.8 billion USD by 2024.

It is predicted that 2020 is going to see some major changes in the industry and the next few years are likely to see some serious evolution. For example, the use of artificial intelligence (AI) and near-field communication (NFI) technology is going to be an essential part of digital identity verification in the future.

 So, what are the five trends in identity verification we expect to see in 2020 and beyond?

At its essence, biometric identity technology allows organisations to authenticate their users through things like geolocation, fingerprints, iris scan, face recognition, and other biometrics that are unique to each person. Every new iteration of biometric technology is becoming more powerful and thus it is becoming increasingly prevalent. 

This is why artificial intelligence (AI) technology is set to be a big trend of the next few months as algorithms are used to scan specific biometric data of faces which results in secure authentication. 

The use of AI means that not only can disruptive factors such as blurred images be permanently eliminated, but the presence of security features on ID cards such as holograms can be verified. This results in dependable and impartial digital identification.

2. Consumer concern driving a demand for change

Both consumers and organizations are becoming more security conscious and this is subsequently driving a demand for more identity-verification tools. Indeed a recent study, found that forty-four percent of American consumers ranked ID theft and banking fraud as their top concern. 

2020 seems to be the ‘year of change’ where we have gone from comprehensive online verification being unusual, to being expected and even insisted upon. This means that organisations are now scrambling to implement and integrate robust security systems using the latest technology to prevent fraudsters and satisfy customer demand. 

It doesn’t take an industry expert to recognise that the world has gone mobile. However, this is no transient trend and 2020 shows there is now no turning back. Among other factors, coronavirus especially has meant that we are demanding more from our mobile devices and any delays in service are not acceptable. 

According to Statista, 52% of global internet traffic is now mobile meaning that mobile devices (including tablets) are now the primary means of accessing the internet for users. 

The implications of this for digital ID verification are profound. As consumers have gravitated towards mobile devices, fraud on these devices has also risen. Businesses are increasingly needing to consider the threats caused by mobile malware that can capture personal information and intercept text messages. This means that they simultaneously need to find ways to protect consumer data while creating a positive customer experience.

Near-field communication (NFC) is a set of protocols that allows communication between two electronic devices over a physical distance of 4 cm (1​ 1⁄2 in) or less. NFC is used for commerce, social networking, banking, gaming and it will now be used more and more for digital identity verification. 

Just last year Veriff launched a near-field communication (NFC) verification tool. This innovative technology enables companies to validate ePassports with both iOS and Android devices.

This demand is looking like a growing trend in 2020 and beyond. According to forecasts from Technavio, the global market for ePassports will grow by 21 percent CAGR to $23.93 billion in 2023. 

Reading the data directly from an ePassport chip provides extremely high security and has the added advantage of being able to verify whether a fraudster has altered the document. Given that most passports are already equipped with this chip it takes online verification to new heights, and even more so when you consider that similar chips are being added to a wide variety of ID documents across the globe. 

One of the biggest impacts of COVID-19 has undoubtedly been the increased adoption of online services such as health data, financial data, authentication, security and, of course, video conferencing.

All of these services create a higher demand for online identity verification, and alongside this, the need for more contactless technology as well. It has created an environment where businesses don’t just need to fight fraud, but they also need to help fight the spread of coronavirus as well. This is why verification solutions are so vital as they need to help organisations authenticate identities without the need for any direct contact. 

As our CEO, Kaarel Kotkas told TechCrunch in March: “Coronavirus does present new use-cases and needs for remote ID verifications. For example, we have been contacted by universities who are looking for remote examination options, but also large tech companies for account recovery and credentials reset to support remote work”

“When looking at the last 2 weeks when coronavirus has really escalated in Europe and the US, it has triggered a lot of integrations connected to coronavirus like e-notaries, digital healthcare, and others.”

Identity verification is a constantly evolving technology, adapting to the needs of different markets around the world. Here we look at the 5 big trends changing the industry this year.

5 Trends in Identity Verification in 2020

TransferGo, one of the world’s fastest growing money transfer companies, today announces a partnership with identity verification providers, including Veriff. 

TransferGo will be able to verify a customer's identity and prevent any attempts by fraudulent individuals looking to register or use the service. The partnership will also reduce the amount of manual processing needed by TransferGo’s employees and support Know Your Customer (KYC) and Anti-Money Laundering (AML) checks from the initial sign-up process.   

Veriff’s technology will allow TransferGo to verify identities using over 8,000 government issued documents and its Near Field Communication (NFC) scanning technology will mean customers can easily scan and verify their ePassports with both iOS and Android devices. 

“Our ambition to continue to improve the service and solutions we offer is rooted in our incessant focus on our customer. The culture of innovation and dedication to improving customer service makes our new partners a great fit for us. They will be critical in helping us deliver a best-in-class ID verification service that is secure, compliant and frictionless,” comments Milda Mačiulaitytė, Compliance Manager at TransferGo.  

Discussing the partnership announcement, Kaarel Kotkas, Founder of Veriff, says: “Having a fast and seamless identity verification process is essential in driving sign-ups and improving customer trust. Our NFC technology will mean TransferGo can reduce the time and manpower needed to verify a customer’s ID and ultimately support a frictionless service for many more customers. We’re delighted to add TransferGo to our customer roster and look forward to our partnership.” 

This announcement comes at a time of growth for TransferGo, with over 2 million users and follows a $10 million investment boost that will enable the business to expand its global footprint and continue to launch new services on its cross-border payments platform. TransferGo also recently received an EMI license extension from the Bank of Lithuania, allowing it to offer customers’ payment cards, e-wallets and other payment instruments requiring storage of funds. 

Founded in 2012, TransferGo is the fastest, most reliable, remittance company in Europe and is the only Pan-European money transfer company that can guarantee your money will reach its destination in 30 minutes. We put the customer first and deliver transparency, and by prioritising customer experience, we’ve built a brand that thousands of clients trust and a product they love. Our vision is to make international financial services pain-free and without artificial borders.

Founder and CEO Daumantas Dvilinskas was included in the 2017 Forbes 30 under 30. The company was nominated for “Fastest Rising Startup of the Year” at the TechCrunch Europa Awards 2018 and listed as one of 2019’s five hottest UK start-ups by TNW.

TransferGo, one of the world’s fastest growing money transfer companies, today announces a partnership with identity verification providers, including Veriff.

Key partnerships with IDV providers support a seamless customer experience and deliver increased service reliability

Taivo Pungas is one of Estonia's brightest young minds when it comes to AI and automation, and he's always happy to discuss them and share what he's learned in his career so far. So when he was asked by Superangel to take part in a webinar on the topic, he leapt at the chance.

Check out the full webinar below, and learn more about:

Getting from business problem to AI application or vice-versa

Making data scientists and programmers work together

Flash Webinar: How To Build Your AI Startup

You can also check out Taivo's excellent blog at https://taivo.ai/

Superangel hosted a Flash Webinar with Taivo Pungas, Veriff's Automation Lead, on building AI teams, products, and startups.

In this article, we’ll cover the ins-and-outs of Know Your Customer (KYC) compliance and how to comply with KYC requirements in your organization. As a bonus, you’ll become an expert at identifying some of the endless KYC-related acronyms, like CDD, CTF, CIP, PEP, and PII.

KYC means conducting background checks on customers for pre-onboarding risk assessments. It is done by businesses to identify and verify the identities of clients to meet regulatory compliance. In other words, it ensures that you know your customers. Meeting KYC or Customer Due Diligence (CDD) standards is a cornerstone of modern Anti-Money Laundering (AML) and Combating the Financing of Terrorism (CTF) policies.

Corporate KYC is an expansion of standard KYC regulations. Instead of focusing on verifying individuals, corporate KYC covers a set of procedures to verify businesses. It plays a crucial role in identifying fake companies and as such, corporate KYC regulations are a modern shield against worldwide money laundering. Corporate KYC plays a significant role in fulfilling KYC and AML compliance and it’s also often referred to as KYB (Know Your Business).

On Facebook, you see our “alternative” KYC definition from Veriff’s “identify verification industry glossary”:


Veriff - Reading about identity verification often leads...

Initially, the regulations on KYC procedures only targeted financial institutions. Nowadays, however, KYC is considered a key obligatory procedure not only for financial but also for various non-financial institutions. The complete list of regulated entities that are impacted by KYC requirements varies from one country to another. Typically, the list of regulated entities includes:

Wallet providers and cryptocurrency exchanges.

Well-structured KYC processes greatly reduce the risk of fraud. Proper knowledge of KYC requirements and the associated procedures are becoming an increasingly important tool of survival in the complex world of anti-money laundering. But what exactly is the role of KYC in anti-money laundering? Let’s find out.

The term AML refers to different regulations from governments and international organizations. The main purpose of the existing AML regulations, such as the latest Anti-Money Laundering Directive (AMLD5) regulatory framework, is to address the following two types of crimes:

KYC is an essential component in the combating of these kinds of crimes, making KYC compliance an integral process for AML purposes. After all, organizations need to pay attention to who they onboard as a customer, and proper customer risk assessment through a well-functioning KYC process can filter out customers that are linked with money laundering or terrorism.

In short, KYC and AML are two very closely related sets of regulations. And, it’s nearly impossible to have one without the other. This means that if you want your organization to be fully compliant with either KYC or AML, you’ll inevitably have to learn the ins-and-outs of both of them.

The value of KYC was also highlighted during the COVID-19 pandemic. In a survey from the Global Coalition to Fight Financial Crime, 95.5% of respondents believed that due to the pandemic, financial crimes would increase. Any financial crime is closely tied together with AML, and KYC can play a significant role in the prevention of such crime by conducting precautionary measures. Considering all the worrying worldwide statistics of fraud, illicit activity, economic crimes, and money laundering, it’s no wonder why KYC regulations are becoming increasingly important.  

So, what about the  actual KYC process itself? What does it look like?

The primary components of the KYC Process

The KYC process includes obtaining and checking Personally Identifiable Information (PII). This phase is referred to as a Customer Identification Program (CIP). CIP is necessary to curb money laundering, counteract terrorist financing, and to combat various other criminal activities that could arise from improper identification of customers.

However, as is often the case with KYC regulations, there’s no one-size-fits-all type of solution to CIP. While CIP provides general instructions, it’s up to each company to decide which PII they choose to request according to their policy.

Some of the more commonly requested examples of PII include:

To verify PII, the clients might need to introduce official documents such as a Passport, ID card, Driver’s license, or Residence Permit. However, besides these three examples, various other types of PII can be requested from clients, and the PII verification processes should be adjusted accordingly.

For verification purposes, verifiers may also run PEP (Politically Exposed Person) and Sanctions checks against worldwide watch-lists. Veriff offers both PEP and Sanctions checks as one of its optional services.

In the European Union, KYC process requirements are determined by the AMLD5 framework. According to the AMLD5, obliged entities must ensure that they know who their customers are. In legal policies, this process is referred to as “Customer Due Diligence (CDD)”, and it is an integral part of financial institutions and other designated non-financial businesses and professions. Read more in our in-depth article on 6 key AMLD5 guidelines to examine the topic in-depth. And, here’s a visual explanation of AML guidelines from the European Commission.

In the United States, on the other hand, CDD requirements are enforced by the Financial Crimes Enforcement Network (FinCEN). FinCEN is authorized by the Bank Secrecy Act (BSA) to impose AML requirements on obliged legal entities and they require all obliged entities to be compliant with four main CDD rules. These rules bolster CDD requirements for financial institutions in the United States, and they apply to entities such as U.S. banks, mutual funds, securities brokers, and futures commission merchants, among others.

Examining both the four CDD rules from the FinCEN and the CDD recommendations from the Financial Action Task Force (FATF) reveals that the two sets of rules are nearly identical. According to them, obliged entities must:

Identify and verify beneficial ownerships;

Understand customer relationships and their risk profiles;

Continue ongoing monitoring of customers and their transactions.

An organization that abides by these sets of rules and recommendations is one step closer to becoming KYC compliant. However, the process of performing CDD is a continuous one, and it varies case-by-case depending on the results of the initial customer risk assessment. That is why there are three different levels of CDD, each meant to be used for different clients depending on their risk levels.

These are the three primary types of CDD procedures

Simplified Due Diligence (SDD) is used in cases where there is a low risk of money laundering or terrorism financing and a full CDD isn’t demanded.

Basic Customer Due Diligence (CDD) covers the basic information that is collected for customer identification and verification.

Enhanced Due Diligence (EDD) includes additional information that is obtained for higher-risk customers. This information is used to better understand customer activity and to mitigate any potential risks of criminal activities.

How Veriff Can Simplify the KYC Process 

Now that you’ve had a chance to glimpse into the abbreviation-rich and oftentimes complicated world of KYC and AML, you might already be pulling your hair out from all these regulations and requirements. While it’s true that becoming legally compliant with all KYC and AML requirements is no easy task, it is a task that can be simplified through the use of online identification services.

In the 21st century, most regulators and organizations already acknowledge the reliability and ease of use of Electronic Know Your Customer (eKYC) and online identification services. This means that all the complicated and time-intensive processes involving personal data, customer identification, and verification can be reduced to a matter of minutes, if not seconds.

Through machine learning, artificial intelligence, and identity experts, Veriff provides organizations with the tools necessary to provide best-in-class online identity verification in seconds. Veriff collects more data points than any other identity verification provider. Many large-scale companies have chosen Veriff as their KYC and fraud prevention service provider. We hope you’ll also consider doing the same if you’re looking for someone reliable to help you achieve KYC compliance without losing your sanity in the process.

So - how do you become KYC compliant, and why would you need to be? Let us tell you all about it.

Achieving KYC Compliance: Here’s Why, and Here’s How

Last week, I sat down with Kaarel Kotkas, the CEO and founder of Veriff to talk about how Veriff has been doing for the first 6 months of this year. 

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