New research by Prepaid International Forum (PIF) reveals how innovative technology is successfully thwarting and discouraging criminals seeking to use e-money or prepaid financial services to launder money or commit fraud.
PIF, the not-for-profit trade body representing the prepaid and fintech industries, reports that as the market for e-money products grows (including prepaid bank accounts and digital wallets), so does the potential for attempts by criminals and terrorist groups to harness this sector for their own aims.
However, a detailed review of the sector’s KYC compliance measures, produced in association with identity verification specialist HooYu, shows that prepaid and fintech firms are winning the war on identity fraud thanks to a wide range of innovative technologies combined with best practice principles, due diligence and governance.
Diane Brocklebank, spokesperson for PIF, says:
“The sector is at the forefront of developing innovative financial services to harness new technology in ways that better meet customer needs and changing lifestyles.
“As an industry, we are also very aware that this innovation needs to go hand-in-hand with proportionate compliance measures to prevent its misuse by those seeking to move money for criminal and terrorist purposes.
“In order to track progress against this objective, PIF has undertaken a detailed review of the technologies and procedures being used to on-board new customers.
“The results highlight the sector’s success at balancing the need for compliance with providing an optimum user experience by allowing legitimate customers to get up and running (in the majority of cases) within 15 minutes. Those requiring additional security can be cleared as quickly as possible (100% within 2 days) or, in the case of dishonest users, refused.”