Verifying an address: More than just a document

At first glance, verifying someone’s residential address might seem simple. However, when onboarding thousands—or even millions—of users globally, staying compliant with Know Your Customer (KYC) and Anti-Money Laundering (AML) regulations adds layers of complexity.

Whether you’re designing onboarding flows, selecting a vendor, or optimizing audits, knowing which documents qualify as valid proof of address is foundational. This guide explores 10 commonly accepted documents for proof of address and explains why identity verification at scale requires more than just manual review.

What is Proof of Address?

Proof of Address (PoA) is a fundamental document used to confirm an individual’s residential address. It’s a vital part of identity verification processes for institutions subject to AML and KYC requirements. Regulatory bodies request it to prevent financial crime, identity theft, and fraud.

Though it may seem straightforward—submit a document with a name and address—what’s accepted as proof of address can vary significantly by jurisdiction, and sometimes even by use case.

Note: “Proof of Address” and “Proof of Residency” are often used interchangeably. However, proof of residency may relate to legal immigration status, while a PoA confirms one’s location of residence.

10 commonly accepted documents for Proof of Address

There’s no universal list of PoA documents, but the following are widely used and often accepted as proof of address:

1. Utility Bill
   Recent gas, electricity, water, or landline bills—mobile phone bills may also be accepted.
   
2. Bank Statement or Credit Card Statement
   Issued by a financial institution, showing full name and address.
   
3. Government-Issued Letters
   Documents from a government agency, such as tax bills or voting notices.
   
4. Lease Agreement or Rental Contract
   Signed agreements that clearly state the residential address.
   
5. Mortgage Statement
   Monthly or annual documents confirming home ownership.
   
6. Insurance Documents
   Home, health, or auto insurance that displays name and address.
   
7. Council Tax Bills (UK)
   Annual documents issued by local governments.
   
8. Driver’s License
   When issued with a valid address, this government issued ID may serve dual roles.
   
9. Residential Certificate or Permit
   Used in several countries as a government-issued PoA.
   
10. Electoral register entry
    For UK residents who need to register to vote, update their details, or understand how their information is used on the electoral register.

Note: While these are common, banks or institutions may have specific requirements. Always confirm what’s accepted as proof of address before submitting.

Why verifying Proof of Address isn’t simple

Even the most standard-looking ID cards or utility bills can pose challenges. Compliance teams face several hurdles:

• Document variability: Formats vary across institutions and countries.
• Falsification & forgery: Fraudsters manipulate government-issued documents or bills bank statements.
• Language barriers: Global submissions may include non-Latin scripts.
• Incomplete or illegible images: Poor scans often miss essential details.
• Timeliness: The accepted validity period for documents varies depending on the country, document type, and industry regulations. It can range from 30 days to up to one year.

These factors complicate the identity verification process and inflate operational costs.

The compliance dilemma: Speed vs. security

Fraud and compliance teams must balance proof of identity and address accuracy with a seamless user experience. In fast-paced sectors like fintech, crypto, and gambling, every second matters.

Manual review of documents for proof of address doesn’t scale. That’s why AI-powered identity verification tools are essential for compliance.

Key features for scalable PoA checks:

• Document classification 
• Multi-language OCR
• AI-powered fraud detection
• Secure audit trails
  

The Veriff solution: AI-powered Proof of Address Verification

Veriff’s Proof of Address suite simplifies compliance with two scalable products:

1. Proof of Address (Standard)

Automates classification, and tamper detection for uploaded PoA documents.

2. Proof of Address Verification (Non-document-based)

Verifies residential data via trusted databases—no upload needed.

🎥 Watch a demo: Veriff PoA Video

Key features of Veriff PoA include:

• Rapid results: response with less than 30 seconds, improving onboarding speed and reducing user drop-off
• Global reach: recognizes documents in over 40 languages across major global scripts, including Arabic, Cyrillic, Japanese, and Latin.
• Document tamper detection: advanced, multi-layered checks detect signs of tampered, fake, or reused documents to reduce the risk of fraud.
• Non-document-based verification: this option verifies addresses against trusted third-party databases, reducing the need for document uploads.
• Address validation: This powerful add-on confirms that the address extracted from the PoA document is a genuine, real-world location. It also confirms the country and identifies the address type (e.g., residential, business, P.O. Box), adding a critical layer of verification.
• Address matching: This feature enriches our PoA offering by confirming that the address on the document matches the one provided by the user during onboarding. It normalizes addresses (e.g., “St.” to “Street”) and performs a component-level comparison to ensure high accuracy and avoid false negatives from simple formatting differences.
• Integration flexibility: the solution can be incorporated into existing onboarding processes or used for standalone checks.

These product enhancements significantly boost the reliability and completeness of our address verification process — giving compliance teams and businesses a far stronger foundation for KYC/AML checks. By combining document-based proofs (like utility bills, bank statements, government letters or rental agreements) with advanced validation methods — including tamper detection, multi-language OCR, and cross-referencing with trusted databases — the process moves from a simple “upload and hope it’s correct” to a robust, scalable system that works globally.  The result is cleaner, more accurate customer data and fewer false positives or rejections, which means smoother onboarding, better risk management, and greater confidence for customers in the information they collect.

“As industries race toward digital transformation, proof of address checks often remain manual and slow, yet it’s an important step in building trust and meeting regulations,” explained Oana Barbacaru, Senior Product Manager at Veriff. “Our new AI-based solution delivers a decision in less than 30 seconds, with top-tier accuracy and built-in fraud prevention. It’s reliable, fast, reduces friction – built for the future of KYC,” she added.

Oana Barbacaru, Senior Product Manager at Veriff:

Our new AI-based Proof of Address solution is reliable, fast, reduces friction – built for the future of KYC.

Oana Barbacaru Senior Product Manager Veriff

Veriff PoA can be applied to use cases such as:

• Customer onboarding in banking, fintech, and gaming
• Right-to-work checks and employee onboarding
• User verification for home-sharing and gig platforms
• Address confirmation for insurance policies and risk assessments
• Location-based compliance in gambling and gaming

Final thoughts

Verifying an address goes far beyond asking for a bank statement or lease agreement. As regulatory pressure increases, so does the need for scalable, secure, and accurate solutions.

Veriff’s Proof of Address suite helps compliance teams verify faster, scale globally, and stay compliant with confidence.

Explore Veriff’s Proof of Address Platform

The post 10 common Proof of Address documents for KYC & AML, and why they matter for compliance teams appeared first on Veriff.

Money laundering is a growing global threat, enabling financial crime and undermining the integrity of legitimate financial systems and financial institutions. It facilitates illicit activities, such as drug trafficking and illegal activity, through tactics like shell companies, cash transactions, and electronic money to disguise dirty money as clean money. Criminals also exploit sectors like real estate to move illicit funds, further complicating the fight against financial crime.

As criminals develop more sophisticated laundering tactics, businesses must strengthen their Anti-Money Laundering (AML) compliance efforts and implement effective money laundering controls to prevent illegal activity. KYC compliance plays a crucial role in identifying and verifying customers in the financial services sector, helping prevent the flow of dirty money into legitimate financial systems.

An effective AML program encompasses measures like KYC and emphasizes the legal and financial consequences of failing to address money laundering. 

This guide covers money laundering trends, key AML regulatory frameworks like the Financial Action Task Force and Bank Secrecy Act, the role of AI-powered identity verification in compliance, and case studies on how Veriff’s solutions prevent money laundering in various sectors.

What is money laundering?

Money laundering is a technique criminals use to cover their financial tracks after they illegally obtain money from an illegitimate source.

Profits gained from criminal activity are often referred to as “dirty money.” This is because the money is directly linked to the crime and can be traced. Due to this, criminals need to “clean” the money so that it appears legal and can be used for investments.

For money laundering to be “successful,” the dirty money must enter the financial system. So, how do banks prevent money laundering? The answer is anti-money laundering (AML) compliance.

AML requirements are a crucial aspect of regulatory compliance for businesses operating in various jurisdictions. Organizations must establish their own AML policies that adhere to local regulations, including customer due diligence and the implementation of transaction monitoring systems.

Definition and examples of money laundering

Money laundering is the process of disguising the origin of illicit funds to make them appear legitimate. It involves concealing or disguising the true source of money obtained through illegal activities, such as drug trafficking, corruption, or terrorism, and integrating it into the legal financial system.

Types of money laundering

Money laundering can take various forms, each with its own unique characteristics. Some of the most common types include:

• Traditional Money Laundering: Involves the physical movement of cash or other valuables to disguise their origin. This can include smuggling cash across borders or using cash-intensive businesses to legitimize illicit funds.
• Digital Money Laundering: Utilizes digital technologies, such as cryptocurrencies or online payment systems, to launder money. This method leverages the anonymity and speed of digital transactions to obscure the source of funds.
• Trade-Based Money Laundering: Involves the use of international trade to disguise the origin of illicit funds. This can include over- or under-invoicing goods and services, or using complex trade transactions to move money across borders.
• Real Estate Money Laundering: Involves the use of real estate transactions to launder money. Criminals may purchase properties with illicit funds and then sell them to integrate the money into the legal financial system.

Understanding these different types of money laundering helps financial institutions implement targeted AML programs to detect and prevent such activities.

Consequences of money laundering

Money laundering has significant consequences for individuals, businesses, and society as a whole. Some of the key consequences include:

• Financial losses: Money laundering can result in substantial financial losses for individuals and businesses. This includes direct losses from fraud and indirect costs such as fines and regulatory penalties.
• Damage to reputation: Being associated with money laundering can severely damage a person’s or business’s reputation. This can lead to loss of customer trust, decreased business opportunities, and long-term reputational harm.
• Legal consequences: Money laundering is a criminal offense and can result in severe legal consequences, including fines, imprisonment, and other penalties. Financial institutions found to be non-compliant with AML regulations may face significant legal repercussions.
• Threat to national security: Money laundering can be used to finance terrorism and other threats to national security. By disguising the origin of funds, criminals can support activities that undermine national and global security.

These consequences highlight the importance of robust AML compliance programs to protect financial institutions and society from the risks associated with money laundering.

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Understanding money laundering techniques

Before you learn how to detect money laundering and address compliance requirements, you must first understand how it works, including the techniques employed by criminals. A robust KYC process is essential in compliance with financial regulations, as it helps organizations verify customer identities, assess risks, and maintain compliance with AML regulations.

Money laundering involves three key stages: placement, layering, and integration.

Placement

The placement stage refers to how and where illegally obtained funds are introduced into the financial system. Methods used by fraudsters include:

• Making payments to cash-based businesses.
• Making payments for false invoices.
• Depositing small amounts of money (below the AML threshold) into bank accounts or credit cards.
• Moving money into trusts and offshore companies that hide owner identities.
• Using foreign bank accounts.
• Aborting transactions shortly after funds are lodged with a lawyer or accountant.

Layering

The layering stage refers to how criminals separate illegally obtained funds from their source. This often involves complex financial transactions designed to disguise the origins and ownership of the funds. The goal is to make it difficult for AML investigators to trace the transactions back to their illicit origins.

Integration

The integration phase happens when the laundered funds re-enter the economy in what appear to be legitimate business or personal transactions. Common methods include purchasing real estate, luxury assets, and high-value goods.

Red flags of money laundering

Recognizing the warning signs of money laundering is crucial for compliance officers and financial institutions. Ongoing compliance is essential to maintain adherence to KYC and AML regulations, ensuring that policies and procedures are regularly updated to adapt to changing regulatory landscapes. Common red flags include:

• Unusual financial activity that deviates from a customer’s normal transaction patterns.
• Large cash deposits with no clear justification for their origin.
• Evasive or defensive responses when questioned about transactions.
• Discrepancies in provided information or documentation.
• Large investments made by third parties without a clear explanation.
• Increasingly complex financial transactions with no apparent business purpose.

The impact of money laundering on businesses

Money laundering affects businesses in multiple ways:

• Financial losses due to fraud, fines, and regulatory penalties.
• Reputational damage from non-compliance and association with financial crime.
• Regulatory scrutiny, including audits, investigations, and possible sanctions.
• Operational inefficiencies from outdated AML procedures and manual compliance checks

Key AML compliance frameworks

Regulations play a crucial role in enforcing AML compliance worldwide. AML laws and KYC regulations are critical in combating financial crime and ensuring organizations’ compliance. Some key frameworks include:

Global:

• Financial Action Task Force (FATF) guidelines being a guiding lighthouse for many countries’ AML frameworks.

United States:

• Bank Secrecy Act (BSA)
• USA PATRIOT Act
• Financial Crimes Enforcement Network (FinCEN) AML rules

European Union:

• 6th Anti-Money Laundering Directive (6AMLD)
• Anti-Money Laundering Regulation (AMLR) 

United Kingdom:

• Proceeds of Crime Act (POCA) 2002
• Money Laundering, Terrorist Financing, and Transfer of Funds Regulations 2017

Understanding AML regulations

Overview of AML regulations and laws

Anti-money laundering (AML) regulations are critical for protecting the global financial system from illicit activity and ensuring compliance with international standards. These frameworks, which countries often align with the Financial Action Task Force (FATF) guidelines, equip institutions to detect and prevent money laundering and related crimes effectively.

Globally, AML enforcement adheres to FATF recommendations, with national agencies adapting regulations to address evolving threats. Financial institutions are expected to continuously refine their AML frameworks, leveraging advanced technology and robust procedures to stay ahead of emerging risks. This approach underscores a commitment to security, trust, and compliance in a rapidly changing regulatory landscape.

In the United Kingdom, AML compliance is driven by the Proceeds of Crime Act (POCA) 2002 and the Money Laundering, Terrorist Financing, and Transfer of Funds (Information on the Payer) Regulations 2017. POCA mandates both individuals and organizations to report suspicious activity and restrict the use of criminally derived funds. The 2017 regulations require financial institutions to implement customer due diligence (CDD), ongoing monitoring, and suspicious activity reporting to mitigate financial crime risk.

In the United States, the Bank Secrecy Act (BSA) and the USA PATRIOT Act form the backbone of AML efforts. These laws enforce key measures, such as reporting transactions exceeding $10,000, conducting customer due diligence, and applying enhanced due diligence (EDD) for high-risk profiles. The emphasis is on robust record-keeping, monitoring, and identifying suspicious transactions to ensure compliance.

What can businesses do to prevent money laundering?

• Conduct thorough KYC (Know Your Customer) processes and due diligence to verify clients’ identity and assess potential associated risks. This helps prevent illegal activities, such as money laundering.
• Monitor transactions carefully for red flags, such as unusual payment patterns, large cash deposits, or transactions in high-risk regions. Use advanced software and manual reviews to catch suspicious activities.
• Train employees regularly on AML risks and compliance procedures. Ensure they understand how to identify and respond to potential threats, keeping your organization compliant and secure.
• Report any suspicious activities promptly to the appropriate authorities, such as financial regulators, to meet legal requirements and support broader efforts to combat financial crime.

How AI-powered Identity Verification strengthens AML compliance

Veriff combines powerful fraud detection with lightning-fast identity verification, delivering accurate results in just six seconds. Supporting over 12,000 identity documents from 230+ countries and territories, Veriff makes global onboarding seamless, with a localized interface in 48 languages to enhance user experience and drive conversions.

Traditional AML processes are often inefficient—manual, error-prone, and time-intensive. As regulations grow more complex, businesses must navigate diverse compliance requirements across jurisdictions. Veriff streamlines this challenge by integrating its advanced IDV solution into KYC, CIP, and Age Verification workflows. Our technology ensures compliance on both local and global scales, while delivering a secure, seamless user experience.

With a global presence and deep expertise in international compliance, Veriff streamlines verification processes across borders, giving you the confidence to scale your business internationally. From adhering to AML and KYC regulations to safeguarding data privacy, Veriff helps you build trust, secure user interactions, and create safer online environments.

Using AI-driven identity verification during onboarding, Veriff ensures every customer is a real person. Our advanced KYC processes form the backbone of anti-money laundering (AML) and customer due diligence (CDD) frameworks. Risk scoring systems evaluate customer profiles for AML compliance, while continuous monitoring adjusts risk profiles based on user behavior. With Veriff, you can trust that your compliance efforts are both precise and reliable, empowering your business to thrive in a rapidly evolving digital world.

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With a comprehensive understanding of money laundering detection and criminal tactics, implement robust processes to shield your business from becoming a target. Leverage advanced strategies and industry-leading practices to ensure your organization remains secure and trustworthy.

The starting point for AML compliance is online identity verification. After all, when welcoming a new customer, you need to make sure that your new customer is  genuine person, within your organization’s risk profile, and not subject to any sanctions. Thankfully, our identity verification and AML Screening solutions help you towards meeting your compliance and KYC requirements.

Veriff’s AI-powered Identity Verification solutions

• AI-driven identity verification and fraud detection to support AML compliance.
• Seamless integration with KYC, Customer Due Diligence (CDD), and Enhanced Due Diligence (EDD) requirements.
• Veriff’s AML Screening solution performs comprehensive checks against global sanctions lists and watchlists to identify and mitigate risks associated with high-risk individuals.

Real-world case study: Veriff & Comun

Comun is a digital banking platform designed for immigrant communities in the US. To ensure compliance with KYC and AML regulations, Comun integrated Veriff’s identity verification solutions, allowing it to:

• Verify identities quickly and accurately.
• Prevent fraudulent transactions and identity theft.
• Strengthen AML compliance in cross-border transactions.

Before Veriff, the most common fraud Comun saw was identity theft. This has been almost completely solved by having the strong KYC system Veriff provides.

Angélique Wynants Comun’s Head of Operations

The post KYC and AML compliance: A comprehensive guide to detecting money laundering appeared first on Veriff.

In short, money laundering is the process of disguising the origins of money obtained through illegal activities so that it appears to come from a legitimate source.

Money laundering occurs when a criminal enterprise or an individual involved in financial crime has a large amount of cash they want to hide from authorities.

To do this, they will willfully conceal money obtained from their illegal activities, “wash” it within the financial system, and get it back in a “clean” way.

Essentially, money laundering has one purpose: to turn the proceeds of crime into cash or property that looks legitimate and can be used without suspicion.

However, there are three key stages of money laundering, and each of these contains its own complexities. So, let’s take a look at each stage in greater detail.

The 3 stages of money laundering explained

Placement

In the placement stage of money laundering, “dirty” money is placed into a legitimate financial system, such as an offshore account or a financial instrument.

In the process of moving the cash from its source, the money is “washed” – meaning it is disguised to look like a legitimate source of income.

At this stage of the process, criminals are vulnerable because they’re moving a large bulk of money and placing it directly into the financial system.

Layering

At this stage, multiple small transactions are made in different markets and across borders. The goal here is to distance the funds from their origins as far as possible.

The aim is to obscure the audit trail through the strategic layering of financial transactions and fraudulent bookkeeping. If this is done well enough, the original source of the funds can be concealed and it will be near-impossible to prove who owns the illegal funds. By spreading the funds across borders, it also makes it more difficult for anti-money laundering officials to trace the source of funds.

Integration

The final stage of the money laundering process is the integration stage, when the “dirty” money is returned to the criminal, seemingly from legitimate sources.  

Once the dirty money has been placed and layered, the funds will be integrated back into the legitimate financial system as “legal” tender. This process must be carried out extremely carefully and the money must come from legitimate sources.

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Examples of money laundering stages

In reality, each of the three key stages of money laundering often overlaps. In addition, each stage can also involve multiple individuals. Here are some examples of how it works:

Placement examples

There are a number of different ways that laundered money can be placed into legitimate financial systems. For example, criminals can use:

• Cash businesses: cash gained from crimes is added to legitimate takings. This strategy works best in businesses that have little or no variable costs, such as car parks, car washes, or casinos. Historically, it used to be done through launderettes, hence the term “washing.”
• False invoices: criminals can put through dummy invoices to match cash lodged, making it look like the cash has been used to settle an outstanding invoice. Sometimes, things may also be over-invoiced or under-invoiced, or goods and services may be falsely described.
• Smurfing: this involves lodging small amounts of money that fall below AML reporting thresholds. These illegal funds are then deposited into bank accounts. One single person may do this over a long period, or multiple people (known as smurfs) may deposit the cash into multiple accounts.
• Foreign bank accounts: this involves physically taking small amounts of cash abroad (generally an amount just under the customs declaration threshold), lodging it in a foreign bank, and then sending it back to the country of origin. This process easily hides the identity of the real owners and is a way to evade paying tax to HMRC
• Aborted transactions: for this, funds are lodged with a lawyer or an accountant so the money can be used to settle a proposed transaction. However, after a short time, the transaction is aborted. When the money is returned, it is from an unimpeachable source.

Layering examples

Layering involves turning dirty money into clean and untraceable funds.

Layering is incredibly complex, but it generally involves the following tactics:

• Moving money electronically between different countries using loopholes in legislation
• Converting money into stocks and other financial instruments
• Investing in real estate or “shell” companies with a functional front

During this stage, criminals will make as many transactions as possible in order to create extra “layers”.

Integration examples

It is important to the criminals that they do not attract the attention of law enforcement or tax authorities when retrieving the now cleaned money. Due to this, criminals are often content to pay payroll and other taxes to make the “washing” more legitimate. Techniques used include:

• Fake employees: these non-existent employees are usually paid in cash
• Loans: these are given to directors and shareholders and are never repaid
• Dividends: these are paid to shareholders of companies that are controlled by criminals
• Investments: criminals may also purchase property, high-end cars, artwork, or jewelry

What are the consequences of money laundering?

Consequences for being caught laundering money include legal penalties such as fines and imprisonment, damage to the reputation of involved businesses, financial losses, and the destabilization of economies.

How can you prevent money laundering?

Money laundering is a serious crime and criminals could try to target your business. As a result, it’s vital that your business adheres to anti-money laundering (AML) guidelines and reports all instances of suspected money laundering

If your company is at risk of financial crime, then you’re required to implement an anti-money laundering compliance program. The main goal of this is to detect, respond, and avoid money laundering and fraud-related risks. You can achieve this by:

• Having an effective reporting structure in place: if money laundering activity is detected at your business, you’ll need to immediately deliver information regarding the activity to the authorities
• Being aware of the risk level of your customers: before you accept any customers, you should evaluate their risk profile and make sure they’re processed and monitored accordingly
• Having a compliance officer as a team member: AML processes are not easy to manage. A compliance officer can review the suitability of your processes and make sure you’re following the ever-changing regulations and laws surrounding money laundering

If you’re looking to become AML compliant, then a great starting point is online identity verification. Our AML & KYC compliance solution helps regulated organizations to fight financial crime.

Powered by AI, our software verifies identities, checks global sanctions and PEP watch lists, and checks for negative news about predicate offenses. It can also monitor clients on an ongoing basis in case something changes. With the help of our software, you can show regulators that you take financial crime and compliance seriously.

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Our identity verification experts are ready to help build you a solution that gets more honest customers onboarded faster, and more securely, than ever before

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Veriff has been recognized by industry analysts Gartner, Forrester, Liminal, Datos Advisory, Chartis Research, Juniper Research and CB Insights. Below is a selection of the awards and nominations.

Awards and industry analyst recognitions

1. Veriff was named category leader by Chartis Research in its Identity Verification Solutions 2023 report. “Veriff’s category leader position in the IDV quadrant reflects twin strengths of accuracy and coverage,” said Ahmad Kataf, Senior Research Specialist at Chartis Research. “Its solution can achieve accurate ID verification at high speeds and volumes, while its broad coverage of ID types is complemented by a robust authentication process.”

2. Veriff was named as a representative vendor in the Gartner 2023 Market Guide for Identity Verification. This came on the back of Veriff being named as a representative vendor in the Emerging Tech: Top 4 Security Risks of GenAI report in August and also being listed as a representative vendor in its Buyer’s Guide for Identity Proofing, which was published last year.

3. Veriff was featured as one out of just 20 key vendors in the Juniper Research Competitor Leaderboard in the Digital Identity Verification Market: 2023 – 2028 report.

4. Veriff was also named in CB Insights Fintech 100 2023 Fraud Prevention and Compliance Industry in October.

5. Veriff was highlighted as a leading vendor in Europe in Liminal’s Link Index Report for Account Opening in Financial Services in July.

6. Veriff was also profiled as one of the seven selected vendor organizations in Datos Advisory’s (Formerly Aite Novarica) Risk Insights & Advisory Fintech Spotlight Q3 2023, which was released in July.

7. Veriff was listed as a contributor to the Forrester’s Emerging Identity Verification (IDV) Requirements In 2023 report, which was published in April.

Veriff CEO and founder Kaarel Kotkas, who was also named in Forbes 30 under 30 Europe, Technology, earlier this year, said the analyst recognition is just reward for the efforts the company has made to drive innovation to reflect the identity verification (IDV) needs of customers. 

I am so pleased to hear the market is recognizing our position as a best-in-class IDV platform. This analyst recognition confirms what we here at Veriff already know – that the world’s most transformative companies trust us to fight fraud, stay compliant, grow globally and build trust with their customers. But to have it validated by such a wide array of analyst firms and industry awards confirms this.

Kaarel Kotkas Founder and CEO, Veriff

Industry awards and nominations

Forbes 30 under 30 Europe, Technology, Kaarel Kotkas, CEO & Founder of Veriff, 2023

CB Insights’ Fintech 250 annual list, Fraud Prevention and Compliance Industry, 2022

Best in Biz Awards 2022 North America, Fastest-Growing Company of the Year, Silver Winner, 2022

Best in Biz Awards 2022 International, Company of the Year – B2B category, Gold Winner, 2022

SBC Awards Latinoameria, Compliance Partner / Supplier of the Year – Gold Winner, 2022

SBC Awards North America, Compliance Solution & Partner of the Year, winner, 2022

VIXIO Gambling Compliance Global Regulatory Awards, RegTech Provider of the Year, shortlisted, 2022

Cybersecurity Breakthrough Awards, Identity Management Solution of the Year, 2021

Global InfoSec Awards, Next-Gen Fraud Prevention (winner), 2021

Black Unicorn Awards, Top 10 Cybersecurity Experts 2021 – Kaarel Kotkas (Founder & CEO of Veriff), 2021

EY Entrepreneur of the Year (Estonia), Kaarel Kotkas (Founder & CEO of Veriff), 2020 

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The good news is that the survey also shows how seriously financial services professionals are starting to deal with money laundering threats. This is because 73% of the survey’s respondents said that anti-money laundering was moving up their company’s agenda.

However, respondents were also quick to highlight the external threats the sector faces, including the crisis in Ukraine and people trafficking (64%), the increased focus on customer transparency and ethical customer onboarding (62%), and the increased risk of fines (51%). On top of this, many financial services companies also stated that they are facing process and compliance challenges.

Where have AML weaknesses been identified?

Within the companies surveyed, the top two AML weaknesses were identified as document collection for individuals and companies (27%) and staff training (29%). On top of this, a number of those surveyed also had concerns around budgeting for AML compliance during a recession (23%).

That said, those who choose to cut their AML budget are likely to create further problems. After all, creating a robust document collection process and correct staff training are both essential for ensuring compliance. 

Those who fail to put the correct processes in place will likely allow dirty money to pass through their company. As a result, they’ll face both fines and reputational damage. Due to this, even though businesses are under pressure and need to find cost savings, it’s clear that cutting the anti-money laundering budget isn’t the answer.

Ensure AML compliance with our screening tool

The importance of complying with the latest AML and KYC regulations cannot be overstated. Thankfully, our AML screening tool can help you maintain regulatory compliance while also actively increasing your conversions.

By employing our identity verification service alongside politically exposed persons (PEP) checks, sanctions checks, adverse media screening, and ongoing monitoring, it reduces the risk for your business at every turn.

To discover how our AML screening solution can help you meet your obligations and improve your conversion rates, speak to our team today and schedule a free demo. 

The post Only half of UK financial service professionals have confidence in their AML procedures appeared first on Veriff.

The UK government has made it a legal obligation for any business defined by its anti-money laundering regulations (including estate agents, accountants, and financial service businesses) to register for anti-money laundering (AML) supervision from HMRC.

Now, if any business that is covered by these regulations fails to put adequate AML practices, policies, and precautions in place, they can be subjected to significant fines. 

The number of fines issued by HMRC overall actually dropped by nearly 9% last year (down from £3 million in 2020/21). However, despite this overall drop, two particular industries saw enormous increases in the number of fines issued: accountancy service providers and estate agency businesses.

Why is the number of fines rising? 

Although at face value these figures look bad for estate agents, it must be said that estate agencies currently lead the way when it comes to new AML registrations. Now, the sector accounts for a sizable proportion of all AML registered businesses. Due to the sector’s greater acceptance of AML compliance, a higher level of fines is to be expected. 

On top of this, the total sum of fines issued to estate agency businesses since the start of the pandemic (2020 to 2022) is actually 41% lower than the total sum of fines issued in the two years prior (2018 to 2019). In the two years prior to the pandemic, the sector paid a total of £8.215 million, but in the last two years, this amount has fallen to just over £4 million.

Ensure AML compliance with Veriff

Our AML screening solution can ensure that your business maintains regulatory compliance.

With the help of our solution, you can show regulators that you take financial crime seriously, all while converting up to 40% more customers. Our solution combines identity verification processes with PEP and sanctions checks, adverse media screening, and ongoing monitoring. As a result, it reduces risk for your business at every turn.

Interested in learning more about how our AML screening solution can help you? Speak to our experts today and book a demo for a time that suits you. 

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In announcing the new agency, Finance Minister Christian Lindner discussed Germany’s “reputation as a money laundering paradise.” In a statement, he added that “We have the courage for great success… With our powerful and effective structures, we will make sure that honest business people will be protected from those who don’t stick to the rules.”

In an accompanying paper, the German government confirmed that it is currently focused on three initiatives. These are:

• The creation of a new federal authority to fight financial crime
• Training more experts
• Accelerating the digitization and interconnection of the relevant property registers and records

The new federal crime agency is meant to bundle and develop expertise and focus on what the ministry calls a “follow-the-money approach.” To do this, the agency will be closely integrated with the Financial Intelligence Unit, to which suspicious transactions are first reported.

Why is Germany at risk from money laundering?

Michael Findeisen, who spent several years running the Finance Ministry’s money laundering division has stated that Germany’s money laundering regulations must be among the strictest in the world.

He has said that “Germany is a powerful economic force, so it is interesting for investors — both legal and illegal investors… There is a lot of illegal Italian money, for example, invested in the German finance sector. That’s why the standards need to be stricter in Germany.”

On top of this, it’s important to note that Germany is also at particular risk of money laundering because the country remains reliant on cash. For example, in Germany, cash can still be used to buy property (although the government has promised to end this). Similarly, Germany has also consistently resisted international regulations imposing a €5,000 limit on cash business transactions.

The international view

Some critics of the German Finance Ministry believe that this new initiative has been timed to coincide with a new evaluation of the country’s efforts from the Financial Action Task Force (FATF).

Recently, the intergovernmental body gave Germany a mixed report card. FATF stressed that although Germany has made “significant reforms” in the past few years, it has dragged its feet when it comes to implementation. As a result “the transition has been challenging… Germany needs to continue to prioritize the implementation of these reforms at the operational level and continue to enhance the collection, analysis, dissemination, and use of financial intelligence.”

FATF concluded by saying that “Germany could be more proactive in using the targeted financial sanctions regime as a preventive measure to freeze terrorist assets”.

With such a faltering report card, it appears likely that the creation of the new agency will only be the first step towards addressing FATF concerns.

Receive international AML compliance with Veriff

The news from Germany is further proof that the international standards relating to money laundering are continually shifting and evolving.

Thankfully, if your business is a financial gatekeeper or must comply with anti-money laundering (AML) rules, then you can ensure compliance with global regulations with our AML screening solution.

With the help of our tool, you can employ real-time data and continually screen customer lists against PEP watchlists, global sanctions lists, and adverse media. Plus, automated screening will notify you if something changes with your existing or previously onboarded customers.

To discover more about how we can help you, talk to our experts today.

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According to the latest publicly available data, the total number of businesses signing up to HMRC’s AML register increased 0.9% from the financial year 2020-21 to 2021-22. This was driven by a significant increase in the number of letting agents and art dealers registering for AML supervision.

For context, the number of art sellers registering with HMRC has grown rapidly. The latest figures show an increase from 200 in 2020-21 to 916 in 2021-22. This is an increase of 358%. Similarly, the number of letting agents listing on the AML register rose by more than 190%, from 112 to 326.

Although the number of estate agents registering with HMRC also grew, this was by a more modest 3.7%, from 11,416 in 2020-21 to 11,843 in 2021-22. However, estate agents still account for more than 35% of all businesses on the HMRC register.

Since 2018, HMRC has required all high-risk businesses, including accountants, money transfer businesses, and solicitors’ firms to register themselves for AML supervision. Letting agents and art dealers were first required to list on the AML register in January 2020.

Ensure AML compliance with Veriff

With our AML screening solution, you can show regulators that your business takes financial crime seriously.

With anti-money laundering screening, you can maintain your regulatory compliance while also actively increasing customer conversions. By deploying our identity verification service alongside Politically Exposed Person (PEP) and sanctions checks, adverse media screening, and ongoing monitoring, you can reduce risks for your business at every turn.

To discover more about how our solution can help you increase conversions while also ensuring compliance, talk to us today.

The post Art dealers and letting agents drive uptick in the number of businesses registering for AML supervision appeared first on Veriff.

But, what exactly are NFTs and what scams do customers need to be aware of? Let’s take a detailed look.

What is an NFT?

NFT stands for non-fungible token. It refers to a unique piece of code that is usually (although not always) stored on a publically accessible blockchain. These pieces of code take the form of ‘smart contracts’ that point to a piece of content such as a digital painting that is stored on a location on the internet.

The provenance of these NFTs can be tracked across the public blockchain, providing end-purchasers with a built-in chain of authenticity. However, if an NFT is compromised or stolen, then it may not be recoverable by the rightful owner due to the nature of blockchain transactions. For this reason, owners must exercise a great deal of caution.

What scams are criminals using?

Due to the value attached to many NFTs, criminals are deploying scams and stealing assets. Methods used by cybercriminals include:

• Creating fake NFTs, passing them off as the real thing, and then selling them
• Creating fake NFT exchanges that capture log-in credentials. Criminals then use this information to steal a collector’s NFTs
• Setting up unauthorized customer support channels and social media accounts that pretend to be affiliated with NFT exchanges in an attempt to steal customer information 

How can I protect myself?

Although NFT-related fraud is on the rise, collectors can put protections in place. For example, NFT collectors should:

• Implement two-factor authentication protocols for account access
• Protect usernames and passwords
• Take additional steps to ensure every NFT purchased is legitimate. This should include not following links sent to you via email or social media. If you have any doubts about authenticity, enter the known URL into the browser yourself. The release should come from an expected source, such as the artist’s own social media/website
• Conduct due diligence on the purchase. Before you buy the NFT, you should perform a reverse image search on the piece you’re buying. If the NFT appears on several NFT exchanges/markets, it may not be legitimate

How companies can safeguard collections with Veriff

Here at Veriff, we understand the challenges that NFT marketplaces and exchanges face when it comes to authenticating NFTs and keeping customer collections safe.

Thankfully, with the help of our identity verification solution, you can authenticate processes and users with no hassle at all. Plus, when you partner with us for verification purposes, you can increase conversions and be certain that you’re meeting regulatory requirements.

To discover exactly how our solutions can help your business, talk to our experts today. We’d love to provide you with a bespoke demo.

The post $100m in NFTs stolen via scams in the past year: how can collectors stay safe? appeared first on Veriff.

To facilitate this process, criminals are using so-called cross-chain bridges. One of these bridges has been used to launder at least $540 million in crime-related crypto cash since 2020. Included in this amount is $153 million in ransomware payments.

What are cross-chain bridges?

Although they’re now being exploited by criminals, these cross-chain bridges have become important crypto tools in the past couple of years. This is because they help expand the market by giving people more ways to pay and transact. In particular, cross-chain bridges are vital to the development of decentralized finance, which is crypto’s alternative to the banking system.

Developers built cross-chain bridges to allow users to send tokens from one chain to another. These transfers rely on darknodes, or networks of thousands of pseudonymous validators. This has allowed cross-chains to become a prime tool for obfuscating crypto cash.

Similarly, because they’re effectively ungoverned, cross-chain bridges are also vulnerable to attacks. Cross-chain bridges can hold hundreds of millions of dollars of assets in escrow. Plus, because they multiply their possible vectors of attack by operating across two or more blockchains, they become prime targets for hackers. In particular, ransomware gangs, fraudsters, and even North Korean hackers are shifting from regulated crypto exchanges to cross-chain bridges.

What will regulators do?

Due to the negatives associated with cross-chain bridges, it’s widely expected that governments will start to focus on how they can be regulated over the next six to 12 months. This is because the bridges act a lot like crypto exchanges, which are already regulated. In the US, the Treasury Department has already begun to blacklist crypto mixing services over fears they’re being used to launder virtual currencies.

At present, cross-chain bridges effectively act as a loophole in the regulatory regime. Although they can currently be used to launder assets originating from theft, fraud, ransomware, and various other types of criminal activity, governments will undoubtedly look to close the loophole as soon as possible.

Ensure compliance with Veriff

As a crypto company, you need to fight fraud, friction, and fear. You also need to reassure your users that their crypto is safe from hackers and fraudsters. This is particularly the case thanks to crypto’s continually shifting regulatory landscape.

Thankfully, our solutions make investing in crypto safe and easy. You can ensure a seamless onboarding experience while meeting regulatory requirements, and bringing on more users from around the world.

To discover more about why our selfie-based identity verification platform is the clear choice for your business, talk to our team

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