‘Why banks must invest in identity theft, financial fraud prevention’
Worried by the rise in financial fraud as a result of identity theft, DataPro Limited, a compliance solutions and technology-driven rating agency in Nigeria has made a case for the right investment in technology adoption to prevent such infractions.
Citing the Financial Action Task Force (FATF) 2020 Guidance, DataPro stated that digital ID systems must be used by financial institutions (FIs) and designated non-financial businesses and professions (DNFBPs) to assert and prove a person’s identity online and/or in a face-to-face environment.
DataPro since its inception in 1995 has provided solutions to end-users in their pursuit of mitigating both business and compliance risks.
According to DataPro, Anti-Money Laundering and Countering the Financing of Terrorism Countering Proliferation Financing (AML/CFT/CPF) compliance onboarding for KYC, and Transaction Monitoring Systems (TMS) need to be fully digitised in order to reduce the incidences of identity theft, fictitious account opening and fraudulent transaction.
This, it said, “Is necessary to support global and national efforts at combating money laundering, terrorist financing and proliferation financing. However, as it is with any new or emerging technology, there are risks involved in the adoption of digital ID systems that have to be understood and properly dimensioned.”
As parts of its November Open-House raining programme, DataPro has hinted of plans to focus on how Compliance Officers, IT personnel, as well as the business people in banks, FinTechs and other financial institutions can understand and mitigate the regulatory, business, technology, cybersecurity, data protection and other associated risks involved in digital identity systems.
The programme tagged: ‘Digital Identity and AML/CFT/CPF Compliance,’ will highlight emerging and technology risks associated with the adoption of digital ID systems for KYC, CDD and EDD purposes.
Besides, it will dimension the fraud, data protection and privacy including business risks associated with the adoption of digital ID in transaction monitoring as well as discuss how FIs and DNFBPs can navigate the Regulatory and Operational space needed for the adoption of digital ID systems.