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Solving KYC challenges in Latin America with digital IDV

Source link : https://theamericannews.net/america/puerto-rico/solving-kyc-challenges-in-latin-america-with-digital-idv/

Biometric digital ID verification is an increasingly important aspect of digital Know Your Customer (KYC) processes, and different initiatives in three Latin American countries – Brazil, Colombia and Puerto Rico – demonstrate how this can lead not only to improved security, but effective regulatory compliance and faster customer onboarding.

iGaming in Brazil

As a result of pervasive fraud and other challenges facing Brazil’s interactive gaming (iGaming) industry, digital ID verification provider Legitimuz says it is offering a solution that combines security, regulatory compliance and user experience.

The solution is able to complete the customer onboarding process in just half a minute through a method that is described as efficient and secure, GMB reports.

The solution, it is said, will enable iGaming industry operators in Brazil to maintain strict security protocols for KYC while still upholding customer satisfaction, in line with recent sports betting regulations unveiled by the government.

Legitimuz’s system can cover the entire cycle of digital KYC with other features such as image enhancement, automated retry flow, real-time human assistance, incomplete verification recovery, digital document acceptance and previous document re-use.

Colombian financial sector

The biting identity verification challenges faced by businesses and organizations, couple with the obligation to comply with strict KYC and AML regulations in Colombia, has been explained in a blog post by ID verification provider for the financial sector, Didit.

In the blog, which also details the country’s KYC and AML legal framework and identity and document verification realities, the firm notes that Colombian companies face serious problems with identity verification, with a 43.5% growth in digital fraud attempts.

As a way out of this and given the country’s need to grow and consolidate its digital economy, the blog recommends that Colombia must use an advance technological approach, “integrating document verification, biometric facial recognition, and AML screening, adapting to the complex local regulatory reality.”

It also mentions the need to comply with strict data protection regulations by deploying ID solutions that “balance security, accessibility, and regulatory compliance, using technologies such as artificial intelligence, biometrics, and multimodal document validation.”

To help companies comply with KYC and AML processes, Didit says it is making available a “free, unlimited and forever identity verification service that allows companies to comply with KYC regulations in Colombia and lay the foundations for the prevention of money laundering.” The AI-powered system can complete ID verification through facial recognition, document verification, as well as optional AML screening.

Public services in Puerto Rico

To streamline ID verification in Puerto Rico and transform how governance and service delivery happens, the country has been pursuing the implementation of a project labelled IDEAL Initiative. IDEAL stands for Electronic Online Access Identification System.

Govtech explains that with the digital ID initiative which allows the download of government-issued certificates and documents from a single platform for identity verification, there’ll be more efficiency in government administration and access to public services will also be streamlined.

Apart from its permission-based data access system and interoperability which will make information sharing easier, the IDEAL initiative is also expected to serve private sector purposes where individuals can share their information with bodies like banks for KYC and for checks like loan eligibility.

The outlet notes that while the data sharing digital public infrastructure initiative in Puerto Rico will enhance service delivery, it is also seen as a major step forward for the country’s digital transformation agenda.

Already, municipalities in the country are collaborating with one another to enable information and data sharing within the framework of IDEAL.

The municipalities of Cataño and Ceiba were the first to integrate services on IDEAL. Meanwhile, there are already a dozen government institutions whose services are on the platform.

Article Topics

biometrics  |  Brazil  |  Colombia  |  digital ID  |  financial services  |  government services  |  IDEAL  |  identity verification  |  Latin America  |  Puerto Rico  |  selfie biometrics

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Publish date : 2024-11-21 08:00:00

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Author : theamericannews

Publish date : 2024-11-21 23:05:39

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