The Government’s renewed crack down on money laundering, following the release this week of the Treasury consultation paper on the European Union’s third money-laundering Directive, has been welcomed by Callcredit.
The paper, which proposes extending EU legislation in regards to the financing of terrorists, calls on financial institutions to report all suspicious transactions and take greater responsibility when it comes to their Know Your Customer (KYC) obligations.
“Our initial reaction to the paper is that it sets out the implementation of the Directive in an effective and proportionate way, although it leaves little doubt that in order for it to work businesses need to be proactive in their KYC undertakings,” says Mel Mitchley, Director of Industry Relationships at Callcredit. “With KYC already proving to be a major business challenge, this additional emphasis on it is likely to continue to cause concern amongst business’ already struggling to cope with the demands of carrying out all the required verification and monitoring protocols.”
Callcredit’s online anti-money laundering ID verification system, CallML is one such system. Recognised by the Financial Services Authority (FSA) and the Joint Money Laundering Steering Group (JMLSG), it uses a wide range of approved and independent data sources, including the Electoral Roll and a full credit database, and is able to confirm identities in seconds.
“Electronic solutions are now widely accepted as the most cost-effective, reliable and consumer-friendly method of identity verification for prevention of money laundering,” says Mitchley. “CallML is already used by numerous companies, including a number of major UK lenders such as Bradford & Bingley, and I’m sure its usage will become even more widespread once the Directive comes into force.”