Secure identity verification processes are fundamental to meeting Financial Industry Regulatory Authority (FINRA) requirements in the U.S. FINRA is a nonprofit organization that oversees U.S. broker-dealers. Its primary goal is to protect investors and ensure the market’s integrity. FINRA creates and enforces compliance rules under the supervision of the U.S. Securities and Exchange Commission. The FINRA Manual covers regulations, notices and guidance to help firms and broker-dealers establish compliance policies and procedures. FINRA’s oversight includes ensuring that anyone who sells a securities product has been tested, qualified and licensed. A Brief Summary of FINRA AML Requirements Under the USA PATRIOT Act, broker-dealers must have an Anti-Money Laundering (AML) compliance program. FINRA provides specific AML program guidelines, including those involving a risk-based approach to verification. “It must be reasonably designed to achieve compliance with the AML Rules,” according to the guidelines, “including, among others, having a risk-based customer identification program (CIP) that enables the firm to form a reasonable belief that it knows the true identity of its customers.” FINRA account opening requirements include verifying name, birthdate, address and identification number. The identification number for U.S. citizens can be a Social Security or employer identification number. Noncitizens have several options, from passports to taxpayer identification numbers. If the customer is a legal business entity, the due diligence measures also apply to beneficial owners. A corporation, partnership, trust or other legal entity may also need to provide: Principal place of business Local office Employer identification number Certified articles of incorporation Government-issued business license Partnership agreement or a trust agreement A Snapshot of FINRA KYC Requirements FINRA rule 2090 lays out guidance for Know Your Customer (KYC) compliance. “Every member shall use reasonable diligence, in regard to the opening and maintenance of every account, to know (and retain) the essential facts concerning every customer and concerning the authority of each person acting on behalf of such customer,” according to the rule.” Those facts about the customer, according to FINRA, are required to: Service the customer Understand the authority of people acting on behalf of the customer Comply with applicable laws, regulations and rules FINRA rule 2111 covers the suitability of transactions or investment strategies for customers. That requires applying reasonable due diligence to assess a customer’s investment profile by collecting information such as age, other investments, financial circumstance, tax status, investment objectives, liquidity needs and risk tolerance. Example of AML, KYC Best Practices FINRA provides best practices broker-dealers have followed to maintain compliance, prevent fraud and uphold their reputation. Notice 21-18, for example, offers guidance for improving security measures when verifying customers’ identities. Those include: Validating customer data or documents – such as a Social Security number, address or driver’s license – through, for example, “likeness checks” Asking applicants follow-up questions or requesting additional documents to validate their identities through credit bureaus, credit reporting agencies or firms providing digital identity intelligence Streamlined Verification for FINRA Compliance FINRA compliance can present identity verification challenges. Trulioo can help by providing industry expertise and access to a broad network of data sources in the U.S. that can optimize verification performance. When organizations blend that data source coverage with services such as Office of Foreign Assets Control and adverse media checks, they create a holistic onboarding strategy that can lead to industry-leading verification rates. The challenges multiply when organizations verify businesses. But when they access a vast data source network, market expertise and cutting-edge technology, they can accelerate due diligence – from verifying sole proprietorships to unraveling complex ultimate beneficial ownership structures – on any company. A full suite of in-house verification capabilities and data sources gives organizations that report to FINRA the flexibility to securely onboard any person or entity. Buyer’s Guide Identity Verified: Your Roadmap to Match Rate Excellence Learn strategies that can help your match rates soar with routing precision and optimized data. Efficient Know Your Customer (KYC) processes are fundamental to meeting Cyprus Securities and Exchange Commission (CySEC) requirements. Identity verification backed by local expertise and data precision helps organizations meet those compliance requirements for different risk levels while controlling onboarding costs. Companies also can avoid excessive onboarding friction by accelerating secure verification. CySEC KYC Regulations CySEC regulates a broad range of industries, including investment services and transactions in transferable securities. Those regulations include Anti-Money Laundering (AML) directives. Cyprus, a European Union member, has amended its AML law to mirror provisions in the EU’s sixth AML directive (6AMLD). CySEC’s unofficial English translation of the “Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing” provides guidance across a broad range of due diligence requirements. Those include: Risk-Based Approach CySEC recommends a risk-based approach to achieving compliance. That approach enables organizations to assess different onboarding risks and adjust due diligence to match the circumstance. Identity Verification Entities that operate with a CySEC license need to perform identity verification before a business relationship is established. When the verification is remote, the organization must ensure the methods, procedures and controls are secure and reliable. They must also regularly check customer data and reverify if it’s found to be inaccurate or if there’s been a substantial change in the information or nature of the account. Business Verification Organizations onboarding businesses need to collect enough information to understand the nature of the company’s activities and the expected pattern and amount of transactions. They also need to verify the company’s beneficial owners and assess the ownership and control structure. “However, it is noted that no single form of identification can be fully guaranteed as genuine or representing correct identity,” according to the English translation, “and, consequently, the identification process will generally need to be cumulative.” CySEC Identity Verification Standards Under CySEC requirements, Cyprus residents must provide name, address, phone number, email, data and place of birth, and job details for verification. Nonresidents should have a passport or national ID card. An official document, such as a utility bill, can provide proof of address. Verification relies on two matches from two independent data sources. The first provides a match for name and address. The second provides a match for name and address or birthdate. Many organizations use CySEC licensing for compliance across the EU. They can fine-tune their compliance programs and expand their verification ability by using documentary and nondocumentary techniques paired with local and global data sources. CySEC requires a broad range of data for business verification. · Registered number · Registered corporate name and trading name · Addresses of the registered office and head offices · Telephone and fax numbers as well as email addresses · Board of directors members · People who are authorized to operate the account and act on behalf of the business · Beneficial owners · Registered shareholders who act as nominees of the beneficial owners · Economic profile Verification might also require an assessment of the business’s corporate status. Streamlined Verification for CySEC Compliance CySEC compliance can pose complex verification challenges for organizations. Trulioo can help by combining an extensive network of data sources across Europe with local expertise that can help organizations calibrate their onboarding risk-based approach. When organizations blend that data source coverage with services such as watchlist screening and adverse media checks, they create a holistic onboarding strategy that can lead to industry-leading verification rates. The compliance challenges multiply when organizations verify businesses. But access to a vast data source network and cutting-edge technology can accelerate due diligence – from verifying sole proprietorships to unraveling complex ultimate beneficial ownership structures – on any company. With full transparency on vetted sources and granular, easy-to-understand match rules, compliance teams can confidently meet CySEC requirements. A full suite of in-house verification capabilities can give organizations that report to CySEC the flexibility to quickly and securely onboard any person or entity in the EU. Buyer’s Guide Identity Verified: Your Roadmap to Match Rate Excellence Learn strategies that can help your match rates soar with routing precision and optimized data. As a European Union member, Belgium has strict regulations around Know Your Customer (KYC), Anti-Money Laundering (AML), data privacy, identity verification and digital services. Sophisticated partners with expertise in the market and state-of-the-art technology can help organizations accelerate customer verification while ensuring compliance and strong match rate performance. Examples of AML and KYC Compliance in Belgium The Law of 18 September 2017 covers AML and KYC requirements. The act requires that obliged organizations implement customer due diligence, including identity verification, to prevent money laundering and terrorist financing. Belgium regulations outline a risk-based approach to AML and KYC, but there is no exemption from the identification and identity verification obligations. The KYC regulations include requirements for collecting information from people and verifying that data against supporting documents or reliable sources that enable it to be confirmed through electronic means. The regulations allow for remote onboarding and the use of electronic identification. But they flag remote onboarding as an indicator of potential higher risk and a prompt for extra due diligence. A Snapshot of Identity Verification in Belgium Identity verification in Belgium can be complex. Name and address searches can be challenging because of language variety. That often creates the need for multiple data sources. Still, the standard identity verification data attributes are name, address, birthdate and phone number. Passports, driver’s licenses and national identity cards are eligible for identity document verification. The country also allows digital ID verification with information from the National Register of Belgium. An estimated 80% of Belgians between 16 and 74 have an itsme account. People use digital IDs for verification when logging on to websites and apps, confirming digital transactions and signing documents. Brief Overview of Business Verification in Belgium Belgium’s legal business structures include sole proprietors, limited and unlimited liability companies, partnerships, cooperatives and foreign entities. All organizations must register with the Crossroads Bank for Enterprises and value-added tax (VAT) authorities. The bank then issues a 10-digit company registration number (CRN). The tax authorities issue a 10-digit VAT number preceded by the country code. Companies also must provide their ultimate beneficial owner (UBO) information to the Federal Public Service Finance. When organizations verify businesses in Belgium, CRN and VAT numbers, as well as the registered entity name, can deliver optimal results. Identity verification can be an efficient way to verify sole proprietorships. Streamlined Verification in Belgium Organizations face a complex regulatory and verification landscape for people and businesses in Belgium. Trulioo can help accelerate the process with a broad mix of global and local data sources and market expertise. Trulioo applies that expertise at every verification step and continually calibrates data match precision to deliver superior onboarding performance. That commitment to optimization helped one of the world’s largest marketplaces increase its verification match rates by 4% in Belgium. When organizations blend that data source coverage and expertise with services such as watchlist screening, adverse media checks and electronic identification for people with digital IDs, they create a holistic onboarding strategy that can lead to industry-leading verification rates in Belgium. The challenges multiply when organizations verify businesses in the country. But when they access a vast data source network and cutting-edge technology, they can accelerate due diligence – from verifying sole proprietorships to unraveling complex UBO structures – on any company operating in the region. A full suite of in-house verification capabilities, paired with data science and market expertise, can give organizations the insight and flexibility they need to overcome any onboarding challenge in Belgium. Buyer’s Guide Identity Verified: Your Roadmap to Match Rate Excellence Learn strategies for selecting a verification partner that can help match rates soar with routing precision and robust data. Posts navigation 1 2 … 158 Next
Secure identity verification processes are fundamental to meeting Financial Industry Regulatory Authority (FINRA) requirements in the U.S. FINRA is a nonprofit organization that oversees U.S. broker-dealers. Its primary goal is to protect investors and ensure the market’s integrity. FINRA creates and enforces compliance rules under the supervision of the U.S. Securities and Exchange Commission. The FINRA Manual covers regulations, notices and guidance to help firms and broker-dealers establish compliance policies and procedures. FINRA’s oversight includes ensuring that anyone who sells a securities product has been tested, qualified and licensed. A Brief Summary of FINRA AML Requirements Under the USA PATRIOT Act, broker-dealers must have an Anti-Money Laundering (AML) compliance program. FINRA provides specific AML program guidelines, including those involving a risk-based approach to verification. “It must be reasonably designed to achieve compliance with the AML Rules,” according to the guidelines, “including, among others, having a risk-based customer identification program (CIP) that enables the firm to form a reasonable belief that it knows the true identity of its customers.” FINRA account opening requirements include verifying name, birthdate, address and identification number. The identification number for U.S. citizens can be a Social Security or employer identification number. Noncitizens have several options, from passports to taxpayer identification numbers. If the customer is a legal business entity, the due diligence measures also apply to beneficial owners. A corporation, partnership, trust or other legal entity may also need to provide: Principal place of business Local office Employer identification number Certified articles of incorporation Government-issued business license Partnership agreement or a trust agreement A Snapshot of FINRA KYC Requirements FINRA rule 2090 lays out guidance for Know Your Customer (KYC) compliance. “Every member shall use reasonable diligence, in regard to the opening and maintenance of every account, to know (and retain) the essential facts concerning every customer and concerning the authority of each person acting on behalf of such customer,” according to the rule.” Those facts about the customer, according to FINRA, are required to: Service the customer Understand the authority of people acting on behalf of the customer Comply with applicable laws, regulations and rules FINRA rule 2111 covers the suitability of transactions or investment strategies for customers. That requires applying reasonable due diligence to assess a customer’s investment profile by collecting information such as age, other investments, financial circumstance, tax status, investment objectives, liquidity needs and risk tolerance. Example of AML, KYC Best Practices FINRA provides best practices broker-dealers have followed to maintain compliance, prevent fraud and uphold their reputation. Notice 21-18, for example, offers guidance for improving security measures when verifying customers’ identities. Those include: Validating customer data or documents – such as a Social Security number, address or driver’s license – through, for example, “likeness checks” Asking applicants follow-up questions or requesting additional documents to validate their identities through credit bureaus, credit reporting agencies or firms providing digital identity intelligence Streamlined Verification for FINRA Compliance FINRA compliance can present identity verification challenges. Trulioo can help by providing industry expertise and access to a broad network of data sources in the U.S. that can optimize verification performance. When organizations blend that data source coverage with services such as Office of Foreign Assets Control and adverse media checks, they create a holistic onboarding strategy that can lead to industry-leading verification rates. The challenges multiply when organizations verify businesses. But when they access a vast data source network, market expertise and cutting-edge technology, they can accelerate due diligence – from verifying sole proprietorships to unraveling complex ultimate beneficial ownership structures – on any company. A full suite of in-house verification capabilities and data sources gives organizations that report to FINRA the flexibility to securely onboard any person or entity. Buyer’s Guide Identity Verified: Your Roadmap to Match Rate Excellence Learn strategies that can help your match rates soar with routing precision and optimized data.
Efficient Know Your Customer (KYC) processes are fundamental to meeting Cyprus Securities and Exchange Commission (CySEC) requirements. Identity verification backed by local expertise and data precision helps organizations meet those compliance requirements for different risk levels while controlling onboarding costs. Companies also can avoid excessive onboarding friction by accelerating secure verification. CySEC KYC Regulations CySEC regulates a broad range of industries, including investment services and transactions in transferable securities. Those regulations include Anti-Money Laundering (AML) directives. Cyprus, a European Union member, has amended its AML law to mirror provisions in the EU’s sixth AML directive (6AMLD). CySEC’s unofficial English translation of the “Directive for the Prevention and Suppression of Money Laundering and Terrorist Financing” provides guidance across a broad range of due diligence requirements. Those include: Risk-Based Approach CySEC recommends a risk-based approach to achieving compliance. That approach enables organizations to assess different onboarding risks and adjust due diligence to match the circumstance. Identity Verification Entities that operate with a CySEC license need to perform identity verification before a business relationship is established. When the verification is remote, the organization must ensure the methods, procedures and controls are secure and reliable. They must also regularly check customer data and reverify if it’s found to be inaccurate or if there’s been a substantial change in the information or nature of the account. Business Verification Organizations onboarding businesses need to collect enough information to understand the nature of the company’s activities and the expected pattern and amount of transactions. They also need to verify the company’s beneficial owners and assess the ownership and control structure. “However, it is noted that no single form of identification can be fully guaranteed as genuine or representing correct identity,” according to the English translation, “and, consequently, the identification process will generally need to be cumulative.” CySEC Identity Verification Standards Under CySEC requirements, Cyprus residents must provide name, address, phone number, email, data and place of birth, and job details for verification. Nonresidents should have a passport or national ID card. An official document, such as a utility bill, can provide proof of address. Verification relies on two matches from two independent data sources. The first provides a match for name and address. The second provides a match for name and address or birthdate. Many organizations use CySEC licensing for compliance across the EU. They can fine-tune their compliance programs and expand their verification ability by using documentary and nondocumentary techniques paired with local and global data sources. CySEC requires a broad range of data for business verification. · Registered number · Registered corporate name and trading name · Addresses of the registered office and head offices · Telephone and fax numbers as well as email addresses · Board of directors members · People who are authorized to operate the account and act on behalf of the business · Beneficial owners · Registered shareholders who act as nominees of the beneficial owners · Economic profile Verification might also require an assessment of the business’s corporate status. Streamlined Verification for CySEC Compliance CySEC compliance can pose complex verification challenges for organizations. Trulioo can help by combining an extensive network of data sources across Europe with local expertise that can help organizations calibrate their onboarding risk-based approach. When organizations blend that data source coverage with services such as watchlist screening and adverse media checks, they create a holistic onboarding strategy that can lead to industry-leading verification rates. The compliance challenges multiply when organizations verify businesses. But access to a vast data source network and cutting-edge technology can accelerate due diligence – from verifying sole proprietorships to unraveling complex ultimate beneficial ownership structures – on any company. With full transparency on vetted sources and granular, easy-to-understand match rules, compliance teams can confidently meet CySEC requirements. A full suite of in-house verification capabilities can give organizations that report to CySEC the flexibility to quickly and securely onboard any person or entity in the EU. Buyer’s Guide Identity Verified: Your Roadmap to Match Rate Excellence Learn strategies that can help your match rates soar with routing precision and optimized data.
As a European Union member, Belgium has strict regulations around Know Your Customer (KYC), Anti-Money Laundering (AML), data privacy, identity verification and digital services. Sophisticated partners with expertise in the market and state-of-the-art technology can help organizations accelerate customer verification while ensuring compliance and strong match rate performance. Examples of AML and KYC Compliance in Belgium The Law of 18 September 2017 covers AML and KYC requirements. The act requires that obliged organizations implement customer due diligence, including identity verification, to prevent money laundering and terrorist financing. Belgium regulations outline a risk-based approach to AML and KYC, but there is no exemption from the identification and identity verification obligations. The KYC regulations include requirements for collecting information from people and verifying that data against supporting documents or reliable sources that enable it to be confirmed through electronic means. The regulations allow for remote onboarding and the use of electronic identification. But they flag remote onboarding as an indicator of potential higher risk and a prompt for extra due diligence. A Snapshot of Identity Verification in Belgium Identity verification in Belgium can be complex. Name and address searches can be challenging because of language variety. That often creates the need for multiple data sources. Still, the standard identity verification data attributes are name, address, birthdate and phone number. Passports, driver’s licenses and national identity cards are eligible for identity document verification. The country also allows digital ID verification with information from the National Register of Belgium. An estimated 80% of Belgians between 16 and 74 have an itsme account. People use digital IDs for verification when logging on to websites and apps, confirming digital transactions and signing documents. Brief Overview of Business Verification in Belgium Belgium’s legal business structures include sole proprietors, limited and unlimited liability companies, partnerships, cooperatives and foreign entities. All organizations must register with the Crossroads Bank for Enterprises and value-added tax (VAT) authorities. The bank then issues a 10-digit company registration number (CRN). The tax authorities issue a 10-digit VAT number preceded by the country code. Companies also must provide their ultimate beneficial owner (UBO) information to the Federal Public Service Finance. When organizations verify businesses in Belgium, CRN and VAT numbers, as well as the registered entity name, can deliver optimal results. Identity verification can be an efficient way to verify sole proprietorships. Streamlined Verification in Belgium Organizations face a complex regulatory and verification landscape for people and businesses in Belgium. Trulioo can help accelerate the process with a broad mix of global and local data sources and market expertise. Trulioo applies that expertise at every verification step and continually calibrates data match precision to deliver superior onboarding performance. That commitment to optimization helped one of the world’s largest marketplaces increase its verification match rates by 4% in Belgium. When organizations blend that data source coverage and expertise with services such as watchlist screening, adverse media checks and electronic identification for people with digital IDs, they create a holistic onboarding strategy that can lead to industry-leading verification rates in Belgium. The challenges multiply when organizations verify businesses in the country. But when they access a vast data source network and cutting-edge technology, they can accelerate due diligence – from verifying sole proprietorships to unraveling complex UBO structures – on any company operating in the region. A full suite of in-house verification capabilities, paired with data science and market expertise, can give organizations the insight and flexibility they need to overcome any onboarding challenge in Belgium. Buyer’s Guide Identity Verified: Your Roadmap to Match Rate Excellence Learn strategies for selecting a verification partner that can help match rates soar with routing precision and robust data.