Verify 365 Risk & Compliance Policy eNews – Update for Law Firms

London, 18 June 2023

Welcome to Verify 365 Risk & Compliance technology’s Policy eNews, your regular briefing on key global policy updates from the world of digital identity, AI, and data privacy.

First, let’s take a look at a few significant Verify 365 announcements in the past few weeks. Verify 365 has launched MyID, a user-controlled digital identity, enhancing the experiences of millions of clients using our DynamicID biometric identity technology. In Europe, we are working on the latest ETSI certification – which stands as a testament to the robustness of Verify 365’s identity proofing solution in the EU. This certification will allow our customers to align with EU regulations, foster interoperability, and boost security and trust. Furthermore, we have released a new white paper on KYC within the EU, guiding you through the regulations and standards that impact KYC, future prospects, and essential considerations for businesses conducting KYC now. The World Economic Forum also published a new white paper on rethinking digital identity with a focus on user-controlled decentralised identities. For more information on any of these, please contact us.

United Kingdom Policy eNews Update

AI Taskforce: The UK Government has allocated £100 million in funding to the AI taskforce, which is in charge of steering the development of “safe and trustworthy AI.” The Department for Science, Innovation and Technology (DSIT) stated that the funding would be set aside to ensure sovereign capabilities and widespread adoption of safe and reliable foundational models. The initial pilot programs are slated to be launched within the next six months.

AI international summit: PM Sunak has revealed that the UK will be the host of an AI summit of “like-minded countries” later this year. This move is another step in the UK establishing its leadership in the tech sphere and positioning itself as a middle ground between the EU and US approaches.

European Union Policy eNews Update

Cybersecurity: The EU Cybersecurity Agency (ENISA) is in the final stages of developing a certification scheme on cybersecurity requirements for cloud companies. This will be a quasi-voluntary scheme that cloud service providers can seek certification against. The latest draft has four assurance levels (basic, substantial, high, high+), the highest of which includes rules preventing a cloud service provider from being controlled by a non-EU entity. Achieving a high+ level of certification will be necessary for data related to legally protected secrets, such as government deliberations or national defence matters, as well as data necessary for essential State functions like maintaining public order or protecting human life and health.

United States Policy eNews Update

Crypto regulation: The SEC has intensified its crypto enforcement with two lawsuits within two days. Meanwhile, Chairman McHenry (House Financial Services Committee) and Chairman GT Thompson (House Agriculture Committee) have introduced legislation, assigning joint responsibility to the SEC and the Commodities Future Trading Commission to regulate digital assets – although House Democrats have not yet joined the effort.

NIST mDL project: NIST’s National Cybersecurity Center of Excellence released the final project description for their “Accelerate Adoption of Digital Identities on Mobile Devices” project. They will be publishing a call for interested participants in the Federal Register and selecting on a first-come basis.

Australia Policy Update

Recently, the Australian Transaction Reports and Analysis Centre (AUSTRAC), the country’s financial intelligence agency, has made significant strides in ramping up AML guidelines. Their aim is to ensure stronger compliance within the financial sector and businesses dealing with money transfers and exchanges, with a special emphasis on digital transactions.

A key development has been the AUSTRAC’s increased focus on crypto-assets and blockchain technology. Due to the rising prominence of cryptocurrencies and their potential misuse for money laundering and terrorism financing, AUSTRAC has introduced stricter AML guidelines for businesses dealing with these digital assets. The new guidelines require crypto-exchanges and other relevant businesses to follow rigorous know-your-customer procedures, continuous transaction monitoring, and prompt suspicious matter reporting.

Further, AUSTRAC has bolstered its identity verification rules, making it more robust and aligned with the digital era. In an attempt to balance data privacy rights and national security concerns, the agency now mandates a comprehensive digital identity verification process, which includes multi-factor authentication and biometric checks. This is designed to safeguard against identity theft and fraud in the increasingly digitalized financial landscape.

It’s worth noting that these stringent AML regulations and identity verification policies are not without challenges for businesses, especially when it comes to implementation and compliance. That’s where solutions like Verify 365 Risk & Compliance technology can provide significant assistance. Designed to align with global AML requirements and identity verification standards, Verify 365 offers a trusted solution for businesses to maintain compliance, enhance security, and foster trust among their clientele.

Singapore Policy Update

The Monetary Authority of Singapore (MAS), the country’s central bank and financial regulatory authority, continues to strengthen its AML framework to safeguard the financial sector against money laundering, terrorism financing, and other illicit financial activities.

One major move has been the MAS’s increased scrutiny of transactions involving cryptocurrencies. Recognising the growing popularity of digital assets, yet cognizant of their potential misuse, the MAS has introduced stringent AML measures for digital asset businesses. These entities are now required to conduct comprehensive Know Your Customer checks, continuously monitor transactions, and report any suspicious activities promptly.

In tandem with these advancements, Singapore has made significant strides in its identity verification policies. The MAS has mandated a rigorous digital identity verification process which involves multifactor authentication and biometric checks. This step not only bolsters data security but also aids in combating identity fraud, thereby instilling greater trust in the country’s digital financial services.

Next steps – Switch to Verify 365

In conclusion, the rapidly changing landscape of digital identity, AI, and data privacy continues to present complex challenges for businesses, government entities, and individuals alike. These developments, coupled with the ongoing evolution in global policy, underscore the need for a robust, secure, and compliant solution that can adapt to the ever-shifting terrain.

Verify 365 Risk & Compliance technology presents itself as an apt answer to these complexities. Equipped with leading-edge technology and continuously updated to reflect changing regulations and standards, it provides a reliable and trusted solution for identity verification and compliance checks.

For law firms in particular, the transition to Verify 365 can offer immense benefits. Given the sensitive nature of their work, law firms require solutions that prioritise security and privacy without compromising on efficiency or user experience. Verify 365, with its eIDV AML platform with an award-winning and a certified identity proofing solution, DynamicID, ensures this delicate balance. Furthermore, as the platform stays aligned with UK, EU and Australian regulations and global cybersecurity requirements, it facilitates seamless international operations, thus aiding law firms in expanding their global footprint.

Moreover, as regulatory bodies increase their oversight on digital assets and AI, as we see in the actions of the SEC and UK Government, using a solution like Verify 365 can help law firms remain compliant, reduce risks, and increase trust with their clients.

In short, the digital future is here, and Verify 365 Risk & Compliance technology offers the means to navigate it securely, efficiently, and compliantly.

It is time that law firms and other businesses looking to safeguard their operations in the digital landscape consider making the switch to Verify 365.