High risk, poor verification - How SmartSearch can help mitigate the risk of working with international individuals

What are high risk International Individuals?

Under the UK’s Anti Money Laundering (AML) regulations, “any business relationship with a person established in a high-risk third country must be subject to enhanced due diligence (EDD).”

This is because individuals or businesses based in those jurisdictions have a much higher risk of being involved in money laundering, bribery, fraud and other financial crime.

Therefore, when it comes to running identification and verification checks, any non-UK residents – i.e. ‘international individuals’ - are classed as a higher risk, and must be subject to much stricter checks.

However, there is an issue – while international individuals do pose a much higher risk, running thorough customer due diligence and screening checks on them can actually be more difficult.

This is because many businesses do not know which sources to use when trying to verify an international client, and even when they do, may struggle to access or interpret the information.

As a result, checks take longer and are often not carried out to the same standard as the checks being run on UK customers, meaning the risk of inadvertently working with a ‘bad actor’ is heightened.

How can SmartSearch's Global check solution help?

To overcome this issue, and help regulated firms have more confidence in working with non-UK customers, SmartSearch recently launched ‘International Individual Check’ – a new solution that enables organisations to perform robust and reliable checks on international individuals with the same accuracy as a UK check offers.

By partnering with leading global financial markets infrastructure and data provider LSEG - SmartSearch is able to ensure access to extensive international data coverage from over 200 global data sources, providing an industry-leading solution. The service currently has access to over 40 countries and when combined with in-depth local knowledge, is able to offer robust and accurate verification of an individual’s name, address, date of birth, and national ID against best-in-class reference data.

Key features:

• Comprehensive coverage – Validate individuals in over 40 countries and easily access centralised data.

• Enhanced Verification - Using advanced technology and local registry sources.

• Real-time screening and monitoring - Includes screening for politically exposed persons (PEPs) and sanctions with continuous monitoring and alerts.

• Seamless Integration - The solution can be integrated using the latest API technology.

Why did SmartSearch feel the need for an International Individual check solution?

“Escalating geopolitical tensions mean that UK businesses that operate globally are facing increasingly heightened risks, making comprehensive due diligence essential,” explains Fraser Mitchell, Technical Director at SmartSearch.

“Our International Individual service has been developed to address these challenges and marks a huge step forward for identification and verification solutions.

“By leveraging cutting-edge technology, data analysis, artificial intelligence and global data partnerships, we are able to offer unparalleled Global coverage, giving businesses the confidence to work with international clients, safe in the knowledge their verification process will alert them to any potential risks before they happen.”

Discover more about SmartSearch's International Individual Check solution here.