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Global Identity Verification Helps Mitigate Money Laundering and Fraud in Two of the World’s Fastest Growing Markets

Global identity verification company, Trulioo, announced today that it now verifies customers in the Czech Republic and Slovakia through its electronic identity verification platform, GlobalGateway – helping to mitigate money laundering and fraud in two of the world’s fastest growing markets.

“Expanding our solution to both the Czech Republic and Slovakia is critical,” said Stephen Ufford, CEO and founder of Trulioo. “Not only are they two of the fastest growing economies in Europe, but they’re also home to some of the fastest growing tech companies in Central Europe,” said Ufford.  

Keeping pace with new regulations and technologies in growing markets, however, is an ongoing process. As technology, consumer behaviours, laws and international standards continue to evolve, so do fraud schemes. Today’s fraudsters are well-funded, skilled and equipped with the latest technology, which makes staying ahead of them more difficult than ever before. In fact, according to National Check and Currency, money launderers now employ complex networks and covers and use modern accounting and financial tools to defraud both the traditional and alternative financial industries. These evolving methods have enabled criminals to conceal their identities in a new way, which presents a huge challenge for financial institutions and law enforcement agencies.

“Both member states will be required by the EU’s Fifth Anti-Money Laundering Directive (5AMLD) to implement new provisions that close loopholes, consider new technologies and improve transparency while still protecting personal data and adhering to international agreements,” Ufford continued.

The Czech Republic and Slovakia are both taking steps to thwart rising fraud and money laundering. According to the U.S. Department of State’s report on the Czech Republic, the country’s central European location and openness as a market economy leave it vulnerable to money laundering. In recent years, its government has put legislation in place to combat this high level of fraud and continues searching for solutions to the large scale of fraud faced today. The country also recently became a party to the United Nations Convention against Corruption (UNCAC) as well as the OECD Anti-Bribery Convention.

Meanwhile, the Slovakian government recently approved a proposal that amends an existing act to increase the transparency of ownership of legal entities and the preservation of information. Under the amended act, all legal entities and special purpose asset arrangements are obligated to register and maintain documentation on ultimate beneficiary owners (UBOs). The UBO’s identification details must be recorded by a legal entity each year and for a period of five years after the termination of the UBO’s status, according to Cechova and Partners.

Developed to help businesses automate their customer onboarding processes and comply with Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements, GlobalGateway powers fraud prevention and compliance systems for hundreds of financial institutions, payments, banks and online marketplaces worldwide.

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