What are the top KYC providers

KYC - the EU's guillotine for money laundering

How do you also proceed against money laundering?

Oliver Obitayo (IDnow): We have developed numerous measures that go beyond the regulatory requirements and thus created an individual security system. It is important to us to always be up to date with the latest attempts at fraud, for example through exchanges with authorities such as the LKA or through research. We have a dedicated “fraud department” for this. In addition, close communication with the compliance and AFC departments of our customers (banks) is important. Users who subsequently turn out to be fraudsters (e.g. due to conspicuous booking behavior) are reported by our customers and permanently blocked by us.

Heidrun Odenweller-Klügl (Schufa): Our subsidiary ClariLab, which we founded together with FinTech Fino at the beginning of the year, supports obligated companies via the so-called KYC platform in fulfilling regulatory requirements and preventing money laundering. All required information (e.g. commercial register information, inquiries and reports in the transparency register, case-defining determination of the beneficial owner and much more) can be obtained digitally in real time via an interface on the platform.

Erik Stretz (Fico): In general, banks should look for ways to break down information and data silos and become more efficient through the use of tools in several business areas. Compliance departments can play a leading role in this and bring benefits to the bank, as these departments have traditionally been most interested in getting a comprehensive overview of systems, data, accounts and transaction flows. Many risk areas that the departments want to monitor are practically completely excluded due to the poor data quality alone. And even if it may not be so important to have a uniform view of the customer when selling insurance policies, this is mandatory for KYC. So, with increasing public pressure on financial crime, we often see banks striving to solve many different and complex problems within a limited time frame. This can be a very difficult and stressful time for everyone involved.

Which tools do you use for this?

Delia König (Solarisbank): In order to implement money laundering and fraud prevention and detection as effectively and efficiently as possible in our institute, we rely on various specialized tools such as credit agencies, company data registers, KYC providers, software solutions in transaction monitoring and in-house developed solutions.

Oliver Obitayo (IDnow): We rely on continuous and specific training of our identification specialists and partners. This training was developed together with representatives of the authorities. We also work with other (international) sources of information (PEP and Sanctions, CRIF Bürgel, ...), have joint fraud teams and collaborations with customers, rely on our own darknet research into new scams and are in contact with the LKAs / BKA Fraud Attempt Trends. And last but not least, we use artificial intelligence to support our employees in uncovering attacks.

Heidrun Odenweller-Klügl (Schufa): We use the solutions and techniques outlined above for this purpose.

How could you support service providers even better?

Delia König (Solarisbank): I believe that the RegTech area (i.e. the companies that deal with "Regulatory Technology") will continue to grow in the future and will play a key role in regulated institutes. As a future-oriented bank, we have to make use of technology in order to ensure scalable, secure processes. I therefore expect service providers to have a high level of technical expertise as well as high technical quality and ease of integration into internal processes and their own system landscape. From my point of view, APIs and technical interfaces are the key to success.