Banks and financial institutions must meet specific types of compliance requirements within the financial industry. There may be different compliance requirements for banks doing business in the United States compared to those doing business on an international level.
One of the requirements for banks and financial institutions is to comply with AML. AML or anti-money laundering protocols are set in place to detect and prevent criminal activities, and specifically to prevent money laundering through financial institutions. The Bank Secrecy Act and the USA Patriot Act specific the AML verification methods that all financial institutions must use.
Other countries and areas of the world have their standards and requirements for AML compliance. In some areas, these requirements stipulate the use of secure, remote, electronic identification for any online financial transactions.
What is a Financial Institution Under the Law?
In general, any type of financial institution that provides credit to customers or allows for the opening of any type of financial account must use AML verification measures.
This begins with the first contact with the customer to open an account. The financial institution is required to comply with all KYC requirements. Obtaining an authentic, government-issued document with a photograph is necessary, often in combination with other supporting documentation.
ID card reading to detect any manipulation of the photograph and documentation is required. At the same time, ongoing AML verification requires the use of liveliness detection, which ensures the individual attempting to access the account is a live person and not an illegally obtained image. Following these and other compliance requirements is highly effective in tracking any possible money laundering in accounts in financial institutions around the world.
The technologies offered by Accura Scan allow financial institutions to comply with both KYC and AML verification requirements. Additional information on our systems can be found at accurascan.com.
