A new pilot program has been announced today by iSignthis Ltd., a provider of compliance-related verification solutions and listed on the Australian Securities Exchange (ASX) under ticker ISX, after it entered into a pilot program with online brokerage iFOREX, in order to optimize its ISX Digital KYC service while providing the broker with an enhanced onboarding system.
The statement from iSignthis explained that the aim of the two-month pilot was to optimize its service while demonstrating compliance with the stringencies of EU’s 4th AML Directive (4AMLD) and related CySEC requirements, ahead of the June 2017 date when 4AMLD comes into effect.
Enhancing client onboarding
Provided that the pilot goes well, the deal could help bolster iFOREX’s ability to onboard clients at a faster and more scalable rate, and the update cited examples of client’s funding with credit card ‘within minutes.’
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Commenting on the company statement regarding the news, iSignthis Managing Director John Karantzis, said: “We are excited to be piloting our recently released 4AMLD customer due diligence KYC solution with industry leader iFOREX.”
Mr. Karantzis added: “Noting that both the 4AMLD and PSD2 are now visible on the horizon, we are delighted by the foresight shown by iFOREX to solve the challenges associated with 4AMLD and PSD2 ahead of time, and offer their customers a seamless, quick and low friction onboarding experience.”
For some brokers, the onboarding process can be hindered by compliance requirements, as it is more than just an approach to marketing-related customer journey aspects, therefore, the methods used to meet compliance requirements when clients initially sign up – related to verifying identity and KYC – can greatly affect a firm’s operations.
The more these administrative processes can be automated – while keeping compliance risks low – the better, yet it also depends on relevant jurisdictions and whether clients must send in proof of ID and address or if the reliance on a 3rd party to verify such data is sufficient, as an example. Regulatory technology (regtech) solutions continue to adapt in order to meet the needs of fintech firms – both mature and startup firms.