Identity: 2016 Year in review - part two
Yesterday, we reviewed the first part of 2016 in regards to changes in the technology, innovation and regulatory landscape for the online identity industry. Continuing on, here’s what happened in the last half of the year.


In July 2016, FinCEN (The U.S. Treasury Department’s Financial Crimes Enforcement Network), enacted new rules to close loopholes regarding beneficial ownership of businesses. Just having a record of the firm still leaves opportunities for corruption based on lax due diligence on who is the owner:

“As with CIP for individual customers, covered financial institutions must collect from the legal entity customer the name, date of birth, address, and social security number or other government identification number (passport number or other similar information in the case of foreign persons) for individuals who own 25% or more of the equity interest of the legal entity (if any), and an individual with significant responsibility to control/manage the legal entity at the time a new account is opened.”

GlobalGateway expanded its identity verification coverage to the MENA region, including Jordan, Lebanon, Kuwait, Saudi Arabia, Oman, Egypt and the United Arab Emirates (UAE). The Gulf region is on the brink of becoming the fastest-growing e-commerce market anywhere.


In August 2016, the European Commission amended its due diligence requirements in AMLD 4.1:

“The Due Diligence requirements are now more stringent. There are fewer scenarios where SDD (Simplified Due Diligence) for eMoney are allowable. There are more situations where CDD (Customer Due Diligence) need to be re-done. And, there has been an expansion of the definition of high risk, wherein enhanced due diligence is necessary (including remote transactions).”

On August 15, Trulioo announced GlobalGateway’s enhanced global AML watchlist capabilities. GlobalGateway now includes extensive, country-specific sanctions lists and an enhanced politically exposed persons (PEP) watchlist that contains over 1 million entities worldwide. The expanded watchlist is aimed at providing clients a range of vital features and functionalities to help them reduce costs and improve efforts to fight against financial crimes.

Also in August, GlobalGateway integrated a new independent and reliable data source for enhanced capabilities for electronic identity verification of Chinese citizens.


Digital Finance Institute released a report about Fintech in Canada: “it is evident that this is a very exciting time for FinTech; investment in FinTech reached a peak in 2015 and appears poised to hold steady for 2016 notwithstanding current economic uncertainty, and partnerships, co-innovation and corporate investment in FinTech is at an all-time high. There is a sense that we are [tweet_dis excerpt="on the cusp of revolutionary changes to how financial services are delivered. — @DFInstitute"]on the cusp of revolutionary changes to how traditional services, be it financial, legal, insurance or otherwise, are delivered.”[/tweet_dis]

FinovateFall took place in New York. Forty companies showcased their latest innovations, including developments in big data, biometrics and APIs. Other topics that made a splash at the conference include AI (artificial intelligence), social commerce, and the Internet of Things. Talk about making a splash, Trulioo’s own Anatoly Kvitnitsky steals the show with a demo with mention of US Olympians, “Ryan Lochte” and “Michael Phelps”.


A Blumberg Capital Fintech Survey revealed that 57% of Americans believe that traditional banks and financial institutions are not keeping up with their needs and will ultimately disappear in their lifetimes. The biggest issue for banks revolve around customer service and delivering customer focused solutions. In the survey, 80% agree that financial institutions need to focus more on helping the average consumer and small business owner.

 Money20/20, the leading global event for innovations in money, was on October 23-26. The world’s largest event enabling payments and financial services innovation for connected commerce at the intersection of mobile, retail, marketing services, data, and technology was, by all accounts, a smash. If you haven’t attended and you’re in the industry, do yourself a favor and make sure you go next year; you’ll be glad you did!

Financial Inclusion Week — Keeping Clients First in a Digital World, took place on October 17-21. Providing the unbanked or underbanked with access to financial services will add 1.6 billion people to the financial system by 2025, helping them tremendously in their daily lives. And, for those who can figure out ways to successfully reach, onboard and service those customers, a bonanza of new revenue streams awaits.

Trulioo extended its AML/KYC footprint to 60 countries including coverage in Indonesia, Vietnam, Costa Rica, Colombia, and Argentina.


In the US, voters decided to make a major change from the status quo and elected Donald Trump for President. As most polls and pundits predicted Hillary Clinton, this is considered one of the biggest political upsets in recent history. His policy statements for deregulation in the banking industry are helping bank stocks soar, while his stance on immigration and other isolationist policies are contributing to drops in tech stocks.

According to a report by The New York Times, use of contactless credit cards and mobile wallets is growing in the U.S. Continuing rollout of chip cards and new payments in terminals around the country, as well as Apple Pay and Samsung Pay, will allow tap payments to make huge strides.

On the digital payments front, the PYMNTS/Forter Global Fraud Attack Index stated that $10.80 of every $100 in digital sales remains at risk. The massive spike in the cost of fraud has its roots in several factors — among them, noted Reitblat, last year’s shift in the U.S. to EMV. One obvious point of opportunity has been that a significant amount of vendors still accept transactions involving card swiping.


The Office of the Comptroller of the Currency (OCC), the main US banking regulator, wants to give FinTechs a National Charter. "The OCC will move forward with chartering financial technology companies that offer bank products and services and meet our high standards and chartering requirements," said Comptroller of the Currency Thomas Curry.

And to help wrap up 2016, we asked our CEO & Founder, Stephen Ufford, to share his thoughts on fintech in 2017:

“The increasingly complex regulatory landscape will continue to challenge fintech in the New Year. It remains to be seen if the finance industry can rise up to meet these new challenges, especially given the uncertainties and changes brought on by Brexit and the new administration. The key to success will be close collaboration between authorities and the fintech sector in establishing a robust and agile regulatory system that fosters vigilance for the good of the economy and the people, yet promotes innovation and growth within the fintech sector.”

What a year it has been, and it’s not over. As it has been so eventful, we wouldn’t be surprised to see other major industry news happen before the end of the year. To stay up to date with the latest news, innovations and best practices, subscribe to our blog or newsletter.

We hope you had a great year and, for all those celebrating, happy holidays!