Why Is the Financial World Embracing AML Biometric Systems?
Before conducting a business relationship with a client, Biometric Identity Verification of the prospective customer is essential for a financial firm to avoid the risk of getting ensnared in the financial crimes of their customers, widespread crimes such as identity theft, money laundering, terrorist financing and others. The Anti-Money Laundering biometric technologies are increasingly evolving and rapidly embraced by the financial industry and healthcare institutions.
This single regulatory tool has enhanced the Anti-money Laundering (AML) and counter terrorist financing (CFT) efforts and has made the verification systems more effective and reliable. Employing biometric systems for customer identity verification provides fast results with better accuracy and it is more convenient than any other method.
All financial institutions such as banks, insurance firms, investment companies, mortgage firms, investment banks and companies, credit unions and other financial institutions are now embracing AML Biometric to protect their firms and their clients against the widespread financial crimes. Despite its extensive use, there are several challenges while employing regulatory technologies like Anti Money
Laundering AML Biometric systems
Traditional verification methods are taxing and come with their own set of problems. Regulatory technology has now come up with new replacements i.e. biometric authentication. In 2021 alone, a new rise in cyberattacks up to 116 million was observed. This was a record high. Weak passwords and human errors have resulted in massive data breaches.
Anonymity provides a safety net to the criminals to conduct their criminal activities in the shadows and get away with them. Verification of a client’s identity and transparency of their financial history empower the financial firms to act proactively and stay vigilant. In the digital monetary system, anonymity in fund transactions leads to large-scale financial crimes. Therefore, audit trails help trace the source of money and AML Screening measures help mitigate the risk of getting entangled in the financial scandals of a prospective client.
Giant players in the banking industry such as Bank of America, Wells Fargo and JP Morgan have biometric verification in place to confirm and protect the online portals and customer bank accounts. Likewise, 65% of Barclays customers are verified and protected using AML Services like biometric authentication.
Since conventional methods of verification such as passwords and manual verification have failed the financial firms, Biometric Identity Verification has presented itself as the leading and more reliable verification method.
The financial industry is one of the most regulated business industries in the world as of now. The financial firms are incorporating various verification methods such as fingerprint recognition, voice recognition, and facial recognition to enhance the accuracy and reliability of results. Fund transaction, ATM operations, and payments are executed by employing biometric identity verification systems.
To conduct the background checks, AML Services are being extensively observed such as AML PEP Screening, and AML Sanctions in order to avoid AML Risks.
Biometric authentication has facilitated the authentication of patients and medical staff in the healthcare sector to enable the safe exchange of confidential information. This helps them in the prevention of illegal prescription of medical drugs. It also aids in the identity verification of the hospital staff in all hierarchies.
Biometric Verification Systems have been super effective in preventing identity frauds and money laundering operations by scanning and verifying the identity of tourists and passengers. Giant U.S. airlines have now employed facial recognition to level up their security measures and prevent crimes. Lack of effective verification measures causes the airport’s Custom departments to deal with rising money laundering and identity fraud cases.
Law enforcement agencies around the world and in particular the United States are employing Biometric Identity Verification to trace the identity of criminals and people under investigations. Biometric technologies such as Iris detection, DNA matching, Speech recognition and facial features evaluation helps trace the criminals and prevent illicit activities.
Deep fake cases are expected to jump after the rise in artificial intelligence in various industries whereas 2D and 3D masks will remain in the same frequency as before. Artificial Intelligence has facilitated the fraudsters to come up with unique spooking schemes. The good news is, AML Biometric authentication techniques have evolved in sophistication. For example, lack of self trained AI models employed in biometric authentication and skin texture analysis previously have led to rise in facial spoofing cases. So now, a mere change in skin complexion of a client’s photo will no longer facilitate the fraudsters to fool the Biometric Identity Verification softwares.
Artificial Intelligence has made it easier for fraudsters to develop better spoofing measures. However, biometric authentication checks have become sophisticated too. A simple skin color change in a photo will not help criminals to fool authentication checks. Skin texture analysis and self-trained AI models in biometric authentication can detect any facial spoof attacks. Moreover, liveness detection is performed to ensure higher levels of accuracy in the biometric verification checks.