Meeting Compliance with Advanced Identity Processes

Meeting compliance regulations… What does that really mean?  Well, compliance can have different meanings depending on the organization. According to Wikipedia, in general, compliance means “conforming to a rule, such as a specification, policy, standard or law.”

Regulatory compliance “describes the goal that corporations or public agencies aspire to achieve in their efforts to comply with relevant laws and regulations.”

Various industries have a range of compliance regulations they must meet – financial institutions and payment processers are just two examples of industries in which regulatory compliance is key focus. When it comes to rules mandating that organizations have confidence that their customers are who they say they are, a few compliance regulations stand out:

  • Customer Identification Program (CIP): CIP verifies the identity of individuals wishing to conduct financial transactions. CIP became a requirement by the US Patriot Act for financial institutions in 2003 to prevent financing of terrorist operations and money laundering. Banks are required to keep records of identifying information and check customer names against terrorist lists. Read more about CIP Compliance here.
  • Know Your Customer (KYC): The process by which a bank or financial institution checks the identity, background and other aspects of the source of wealth of potential and existing customers. Legislation and regulation require firms to obtain evidence of identity of a customer at take-on and to keep a record of that evidence for as long as there is a relationship with a customer. Read more about Know Your Customer Rules here.
  • Federal Financial Institutions Examination Council (FFIEC) Guidelines: Due to the increase of sophisticated criminals gaining unauthorized access to online banking accounts, the FFIEC issued a supplement to its 2005 Authentication in an Electronic Banking Environment guidance. This supplement, released in June 2011, provided more specific information around authentication technologies and established minimum controls for banks to follow in order to better address the higher authentication risks they now face. Read more about the FFIEC Guidelines here.
  • Office of Foreign Assets Control (OFAC): The Office of Foreign Assets (OFAC) at the U.S. Department of the Treasury administers and enforces economic and trade sanctions against targeted foreign counties, terrorism-sponsoring organizations, and international narcotics traffickers based on U.S. foreign policy and national security goals. The events of September 11, 2001 increased the diligent need for financial institutions to monitor transactions performed by or through them to better comply with the economic and trade sanctions enforced by OFAC of the U.S. Department of the Treasury administers. Ream more about OFAC compliance here.

TechValidate, a third party research organization, recently conducted a survey of our trusted and valued customer base. When asked, 67% of customers use identity verification to meet compliance regulations.


Source: Survey of 43 users of IDology ExpectID.

Here is what one customer had to say about meeting regulatory compliance with the advanced identity processes delivered by the IDology platform:

“Using IDology enables us to meet Banking Regulatory and Compliance requirements.” ~ Operations Manager, Small Business Banking Company. View the validated response here.

Finding a comprehensive and robust identity verification platform that gives you the flexibility to protect your organization against fraud, money laundering, and terrorist activities, among others is a critical element for any organization striving to meet compliance.

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