The U.S. Financial Crimes Enforcement Network (FinCEN) has proposed new regulations requiring businesses performing Know Your Customer (KYC) checks to collect robust geolocation data. IP addresses alone are no longer sufficient due to their vulnerability to masking and manipulation. This regulatory shift aims to enhance customer verification and strengthen defenses against financial crime.
The Regulatory Shift: Why Geolocation Matters
IP addresses, long used to infer a user’s location, can be spoofed or masked by VPNs and proxies. FinCEN’s latest regulations call for more precise geolocation data as part of Anti-Money Laundering (AML) and Counter-Terrorism Financing (CTF) efforts. This ensures financial institutions can confidently verify where their users are located during key transactions.
iComply’s Advanced Edge-Computing Solution
To help our clients meet these new requirements, iComply has released a significant enhancement to our edge-computing platform, integrating:
Precise Geolocation Tracking: Uses multiple data points—including GPS and Wi-Fi positioning—for an accurate, real-time user location.
Device Fingerprinting: Creates a unique device profile based on hardware and behavior to detect fraud attempts and unauthorized access.
Live Biometric Verification: Confirms that the user completing verification is physically present and matches their registered identity.
Why This Matters to Your Business
Regulatory Compliance: Stay ahead of new FinCEN requirements with secure, compliant KYC workflows.
User-Friendly Experience: Our seamless integrations keep the verification process quick and frictionless for users.
Stay Compliant and Confident
The financial compliance landscape is evolving rapidly. iComply’s latest technology ensures you can meet these stricter regulatory standards without sacrificing security or user experience.
Get in touch today to learn how iComply can future-proof your KYC and KYB processes and keep your business compliant, secure, and trusted by your customers.
David, the Chief Information Security Officer (CISO) at a mid-sized credit union in British Columbia, faced a daunting challenge. His credit union had been flagged in an internal audit for inadequate compliance processes related to KYB (Know Your Business), KYC (Know Your Customer), and AML (Anti-Money Laundering). With the British Columbia Financial Services Authority (BCFSA) tightening AML regulations, David knew that continuing with their web of disconnected solutions and manual workflows was no longer viable.
The stakes were high. Non-compliance could lead to hefty fines, reputational damage, and even restrictions on operations. To address the gaps, David and his team began exploring ways to overhaul their compliance processes. They quickly realized they had two choices: continue patching together multiple disconnected systems or adopt iComply’s holistic compliance platform. Here’s how David’s team turned their challenging and complicated compliance journey into a success story.
The Status Quo: A Web of Inefficiency
Before adopting iComply, David’s credit union relied on a fragmented system for compliance. KYB checks were done through multiple vendors, KYC was manual – usually requiring members to come to the branch for routine updates, and AML monitoring involved a time-consuming mix of spreadsheets and third-party tools. Each step required manual effort, from verifying documents to cross-checking sanctions lists and PEPs (Politically Exposed Persons).
This setup caused significant challenges:
Time-Consuming Workflows: Staff spent hours reconciling data across different platforms.
High Costs: Licensing multiple solutions added up, with limited ROI.
Increased Risk: Manual processes led to errors, exposing the credit union to potential non-compliance.
Poor Member Experience: Onboarding new members was slow and frustrating, affecting satisfaction and retention. Existing members were frustrated by the credit union’s policiy to force members to come to the branch in order to provide updated documents for KYC refreshes.
David knew that meeting BCFSA’s stringent AML guidelines required a transformative solution—one that could consolidate systems, automate workflows, and enhance security.
The iComply Difference
When David’s team evaluated iComply, the benefits were clear. Unlike traditional solutions, iComply offered an end-to-end compliance platform designed to address the unique challenges of small to medium financial institutions. Here’s how iComply reshaped their approach:
Consolidation of Systems: iComply replaced eight disconnected systems with a single, unified platform. This meant KYB, KYC, and AML workflows could be managed seamlessly from one place, eliminating redundancies and errors while simplifying processes.
Edge Computing for Enhanced Security: With iComply’s proprietary edge computing technology, sensitive member data was processed and encrypted directly on their devices. This ensured that no unencrypted data left the local environment, significantly reducing privacy risks and better aligning with their requirements around data governance and their members expectations for data privacy and security.
Automation and Efficiency: Tedious tasks like document verification, sanctions screening, and biometric identity checks were automated. Real-time alerts flagged potential issues, allowing David’s team to focus on high-priority cases instead of getting bogged down in manual reviews.
Improved Member Experience: By streamlining onboarding, iComply enabled new members to complete verification in minutes, not days. This frictionless experience boosted member satisfaction and reinforced the credit union’s commitment to member privacy, security, and service.
Cost Savings: Consolidating systems and automating processes reduced licensing fees, as well as integration, maintenance, and operational costs. The ROI was immediate, with fewer resources spent on compliance operations and more available for growth initiatives.
Meeting BCFSA Requirements with Confidence
The BCFSA’s AML guidelines emphasize early identification of risks, robust documentation, and ongoing monitoring. With iComply, David’s credit union exceeded these standards:
Comprehensive Screening: Real-time access to global sanctions, PEP, and watchlist data ensured thorough due diligence.
Transparency and Reporting: Automated audit trails and detailed reports made regulatory reviews straightforward and stress-free.
Ongoing Monitoring: Continuous risk assessment tools allowed David’s team to stay ahead of potential threats.
A New Value Proposition for Members
Adopting iComply wasn’t just about compliance—it reinforced the credit union’s value to its members. By ensuring the highest levels of security and privacy, the credit union demonstrated its commitment to protecting members’ financial well-being. Additionally, faster onboarding and streamlined services enhanced member trust and loyalty.
Creating Exceptional Member Experiences
For David and his team, choosing iComply was a game-changer. The credit union now operates with confidence, knowing its compliance processes are robust, efficient, and fully aligned with BCFSA requirements. They’ve saved time, reduced costs, and significantly lowered their risk exposure—all while improving member satisfaction.
If your financial institution is still struggling with disconnected systems and manual workflows, it’s time to consider iComply. Like David’s credit union, you can transform compliance from a burden into a strategic advantage.
Emily, a seasoned compliance officer, remembers the days when performing a KYC (Know Your Customer) refresh meant a mountain of manual work. Tasked with ensuring her financial services firm remained compliant with evolving regulations, Emily had to juggle stacks of outdated spreadsheets, endless email threads, and hours of manual data verification.
But today, thanks to iComply’s streamlined platform, Emily’s team has revolutionized their approach to KYC refreshes, making them faster, more accurate, and far less stressful. Here’s a look at how she transformed her processes and achieved compliance with confidence.
Step 1: Planning and Preparation
Previously, Emily’s KYC refresh process began with manually identifying accounts due for updates. This meant combing through spreadsheets to cross-reference customer profiles with regulatory requirements—a time-consuming and error-prone task.
Now, with iComply, Emily’s team uses automated workflows to flag accounts requiring a refresh based on predefined rules, such as changes in risk profile or regulatory deadlines. This automation ensures no account is missed and allows her team to focus on higher-value tasks.
Checklist for Planning and Preparation:
Identify accounts needing updates based on risk or regulatory timelines.
Use automated tools to flag accounts requiring a refresh.
Ensure all necessary customer data is centralized and accessible.
Step 2: Customer Outreach
In her previous role, Emily spent hours crafting individual email templates and following up with customers to gather updated documentation. Tracking responses was chaotic and often resulted in delays.
With iComply, Emily’s team now automates customer outreach. Personalized requests for updated documents are sent through a secure portal, complete with clear instructions. Customers appreciate the seamless experience, and Emily’s team can track responses in real time.
Checklist for Customer Outreach:
Automate personalized outreach to customers with secure communication tools.
Provide clear instructions and a user-friendly portal for submitting updates.
Monitor responses and set reminders for follow-ups.
Step 3: Document Verification
Manual document verification was one of the most time-consuming parts of Emily’s old workflow. Her team had to manually check IDs, match information, and ensure authenticity.
Now, iComply’s platform automates document verification with advanced AI-driven tools. These tools cross-reference submitted data against global watchlists, ensuring compliance while significantly reducing errors and processing time.
Checklist for Document Verification:
Use automated tools to verify submitted documents.
Cross-check customer data with global sanctions and PEP lists.
Flag discrepancies for manual review.
Step 4: Risk Assessment and Scoring
Previously, performing a risk assessment involved manually calculating scores based on various risk factors, often requiring input from multiple teams. This process was not only inefficient but also inconsistent.
With iComply’s integrated risk assessment tools, Emily’s team now generates consistent and accurate risk scores automatically. This allows for quick identification of high-risk customers who may require enhanced due diligence.
Checklist for Risk Assessment:
Automatically calculate risk scores based on predefined criteria.
Review flagged accounts for potential issues.
Update customer profiles with risk assessments.
Step 5: Reporting and Compliance
One of Emily’s biggest challenges used to be generating compliance reports for internal audits and regulatory reviews. Gathering data from disparate sources often led to delays and incomplete records.
With iComply, reporting is now effortless. The platform generates comprehensive audit trails, ensuring Emily’s team is always prepared for regulator inquiries. This gives her the confidence to demonstrate compliance at any time.
Checklist for Reporting:
Generate audit trails automatically to track all actions.
Prepare compliance reports with detailed documentation.
Ensure records are stored securely for easy access during audits.
Transforming Compliance with iComply
Today, Emily no longer dreads KYC refresh cycles. By leveraging iComply’s advanced platform, her team has:
Reduced manual work by automating repetitive tasks.
Improved accuracy with AI-driven document verification and risk scoring.
Enhanced customer experience with seamless, secure communication.
Gained confidence in their compliance readiness through robust reporting tools.
For Emily, the difference is night and day. With iComply, her team not only meets regulatory requirements but also sets a higher standard for efficiency and customer trust.
Whether you’re a compliance officer like Emily or part of a team managing KYC processes, iComply can help you streamline workflows, reduce costs, and build a program that’s ready for the future of compliance.
When Mark, a cofounder of a fast-growing fintech startup in the UK, realized his company needed to adhere to the Financial Conduct Authority (FCA) standards for KYB, KYC, and AML, he was overwhelmed. As his business scaled rapidly, the complexities of compliance threatened to slow down operations and erode investor confidence. Here’s how Mark built an effective AML program that not only met regulatory requirements but also became a cornerstone of his company’s success—all with the help of iComply’s innovative platform.
Step 1: Understand the Regulatory Requirements
Mark started by diving into the regulatory frameworks his company needed to follow. In the UK, the FCA’s stringent requirements on KYB and KYC processes set the standard. Mark also reviewed global guidelines from the Financial Action Task Force (FATF) and the EU’s AML Directives to ensure his company’s policies aligned with international best practices.
Mark’s Checklist for Understanding Regulations:
Identify the specific regulations relevant to your industry and jurisdiction.
Consult official resources from regulatory bodies like the FCA or FATF.
Seek expert guidance or use tools that summarize complex requirements.
Step 2: Conduct a Risk Assessment
Next, Mark conducted a detailed risk assessment, analyzing his fintech’s customer base, transaction types, and geographic exposure. With iComply’s support, he categorized his customers by risk levels and identified high-risk activities requiring Enhanced Due Diligence (EDD).
Mark’s Checklist for Risk Assessment:
Map out your customer demographics and transaction patterns.
Identify high-risk geographies and customer profiles.
Document risks and prioritize them for action.
Step 3: Develop and Document Policies and Procedures
Mark knew that robust policies and procedures would be the backbone of his AML program. iComply’s policy and procedure documentation tools helped him create clear guidelines for:
Customer Due Diligence (CDD): Verifying identities and monitoring activities.
Enhanced Due Diligence (EDD): Extra checks for high-risk scenarios.
Use customizable templates to address specific business needs.
Ensure policies cover all required areas, from CDD to reporting.
Review and update documentation regularly.
Step 4: Appoint an AML Compliance Officer
Mark appointed Emily, a dedicated AML Compliance Officer, who used iComply’s tailored training resources to hit the ground running. Emily took charge of:
Implementing and managing the AML program.
Acting as the primary contact for regulators.
Ensuring the team’s adherence to policies.
Mark’s Checklist for Appointing an Officer:
Select someone with expertise in AML and compliance.
Provide them with authority and resources to act effectively.
Offer ongoing training and support.
Step 5: Train Your Team
Mark’s entire team needed to understand their roles in compliance. Using iComply’s AML training modules, he ensured employees could recognize and report suspicious activities.
Mark’s Checklist for Training:
Schedule regular training sessions tailored to job roles.
Include practical examples of red flags and reporting processes.
Update training materials as regulations evolve.
Step 6: Implement Technology Solutions
To support compliance, Mark integrated iComply’s platform into his operations. The platform provided holistic, integrated solutions to streamline and connect his KYB, KYC, and AML workflows. iComply provided:
Policy and Procedures: Streamlined creation of up-to-date workflow documentation.
KYB Automation: Onboard corporates and identify their directors, officers, beneficial owners, and other related parties.
AML Automation: Screen and monitor all clients and related parties in real time for new sanctions, political exposure, crime, money laundering and terrorist financing.
Audit Support: Tools for managing records and preparing reports for reviews.
Mark’s Checklist for Technology:
Identify gaps in your compliance processes that technology can address.
Select scalable, user-friendly solutions.
Test systems thoroughly before implementation.
Step 7: Monitor and Audit Regularly
Regular audits became a cornerstone of Mark’s compliance strategy. iComply’s platform helped him organize documentation and streamline audit preparation, ensuring a smooth process during regulatory reviews.
Mark’s Checklist for Monitoring and Auditing:
Conduct regular internal reviews of compliance practices.
Maintain a clear audit trail with organized records.
Engage third-party experts for independent assessments.
Step 8: Foster a Culture of Compliance
Mark and his cofounders led by example, embedding compliance into the company’s values.
Mark’s Checklist for Culture:
Communicate the importance of compliance at all levels.
Recognize and reward compliance efforts.
Encourage employees to report concerns without fear of retaliation.
Step 9: Report and Respond to Incidents
When suspicious activity arose, Mark’s team acted quickly. This ensured prompt submission of SARs and effective incident resolution.
Mark’s Checklist for Incident Response:
Establish clear procedures for identifying and reporting issues.
Train staff on how to handle incidents.
Review incidents to strengthen future prevention efforts
Step 10: Stay Current with Regulatory Changes
With iComply’s regulatory updates to their platform, Mark stayed ahead of new requirements. This proactive approach allowed his company to adapt seamlessly to evolving standards without the need for a big technical lift.
Mark’s Checklist for Staying Current:
Subscribe to updates from relevant regulatory bodies.
Participate in industry forums and workshops.
Regularly review and update AML policies
Building Trust Through Compliance
Thanks to iComply, Mark transformed a daunting compliance challenge into a streamlined, cost-effective process. His fintech now operates with confidence, meeting FCA standards and building trust with customers, investors, and regulators. By following Mark’s example, you too can create an AML program that safeguards your organization and supports sustainable growth.
In today’s rapidly changing digital landscape, data privacy and security are more crucial than ever for compliance teams. As regulations tighten and cyber threats evolve, businesses must prioritize innovative solutions. Enter edge computing, a game-changer for KYC, KYB, and AML software. This technology is transforming how organizations approach compliance—offering speed, security, and scalability.
Key Trends Shaping Data Privacy in 2025
Global Data Regulations Are Expanding With updates to GDPR and new rules like the U.S. Data Privacy Framework, businesses need solutions that ensure compliance across jurisdictions.
Data Sovereignty Is Non-Negotiable Laws requiring local data processing mean businesses must rethink how and where sensitive information is handled.
AI Is Both an Opportunity and a Risk AI-powered compliance tools are advancing rapidly, but they also raise concerns about data misuse and accuracy.
Cyber Threats Are Constantly Evolving From phishing to ransomware, the need for proactive and decentralized security measures is paramount.
Why Edge Computing Is the Future of Compliance Unlike traditional API-driven solutions that rely on centralized cloud systems, edge computing processes data locally—closer to where it’s collected. For compliance functions like KYC, KYB, and AML, this shift delivers three transformative benefits:
Stronger Data Privacy: By processing sensitive information locally, businesses reduce the risks associated with transmitting data over public networks.
Faster Operations: With real-time processing at the edge, compliance checks, such as identity verification or sanctions screening, are completed in seconds.
Regulatory Compliance Made Easy: Edge computing aligns naturally with data localization laws, ensuring sensitive data stays within required jurisdictions.
What is Edge Computing?
Imagine a network where data processing happens closer to where the data is generated, instead of relying on a distant central server. That’s edge computing in a nutshell. By bringing computation to the “edge” of the network, you reduce latency, improve security, and enable real-time decision-making.
Streamlining Compliance with Edge Computing Edge computing isn’t just about speed and security—it’s about simplifying complex compliance processes. Here’s how it enhances KYC, KYB, and AML operations:
Enhanced Identity Verification Edge computing enables instant validation of identity documents and biometrics, improving onboarding times and reducing friction, risk, and cybersecurity threats.
Global Compliance Made Simple With multilingual and multi-jurisdictional capabilities, businesses can adapt seamlessly to local regulations while maintaining high standards.
Real-Time Risk Monitoring Continuous AML checks for sanctions, PEPs, and adverse media happen instantly, giving teams immediate insights into potential threats.
Data Minimization by Design By processing only the essential data directly at the source, edge computing reduces storage needs and aligns with privacy principles like GDPR’s minimization requirement.
Customizable and Scalable Solutions Whether you’re a fintech startup or a global bank, edge computing offers modular compliance tools that grow with your business.
Why Businesses Are Switching to Edge for KYC, KYB, and AML Edge computing addresses compliance challenges that legacy systems and API-reliant platforms can’t. It reduces costs, increases operational efficiency, and ensures compliance teams stay ahead of the curve.
For example:
A financial services company cut its KYC processing time by 80% using edge-based identity validation.
A global bank maintained compliance across 195 countries by leveraging localized edge solutions for KYB due diligence.
The Edge Advantage for 2025 and Beyond As compliance becomes more complex, businesses need tools that are not only secure but also flexible and future-ready. Edge computing is revolutionizing how organizations approach KYC, KYB, and AML, ensuring faster operations, stronger security, and seamless compliance.
By embracing edge computing, you’re not just meeting today’s demands—you’re setting your business up for long-term success in a trust-driven world.
GDPR and Your Verification Solutions: Ensuring Compliance and Data Security
The General Data Protection Regulation (GDPR) has significant implications for how financial and legal service providers handle personal data during client onboarding. While KYC/AML regulations require the collection of sensitive information, GDPR sets strict rules for data collection, processing, and storage. This can be challenging, but with the right approach, GDPR compliance can strengthen your data security and enhance customer trust.
Understanding the Impact of GDPR on your KYB, KYC, and AML programs:
Many firms utilize third-party KYB, KYC, and AML solutions for digital onboarding. It’s crucial to understand how GDPR impacts these solutions and your overall KYC/AML process:
Data Minimization: Collect only the data absolutely necessary for verification. Avoid collecting excessive information “just in case.”
Data Security: Ensure your KYB, KYC, and AML solution provider uses robust security measures like encryption, access controls, and regular audits to protect customer data.
Data Storage and Transfer: Where is your customer data stored? If it’s outside the EU, ensure adequate safeguards are in place for international data transfers.
Data Subject Rights: Your KYB, KYC, or AML solution should facilitate data subject requests, such as access, rectification, and erasure.
Transparency: Be transparent with customers about how their data is collected, used, and stored. Provide clear and concise privacy notices.
Key Strategies for GDPR-Compliant Verification:
Conduct a Thorough Vendor Assessment: Evaluate your KYB, KYC, and AML solution provider’s GDPR compliance. Request their data processing agreement, privacy policy, and security certifications.
Map Your Data Flows: Document how personal data is collected, processed, and stored within your verification workflows. This helps identify potential risks and compliance gaps.
Implement Privacy by Design: Embed GDPR principles into your verification processes from the outset. This includes data minimization, purpose limitation, and data security.
Provide Employee Training: Educate your team on GDPR requirements and best practices for handling sensitive personal data.
Establish a Data Breach Response Plan: Have a plan in place to address potential data breaches, including notification procedures and mitigation measures.
Regularly Review and Update: GDPR compliance is an ongoing process. Regularly review your verification processes and update them as needed to reflect regulatory changes and best practices.
Benefits of GDPR-Compliant Verification:
Enhanced Data Security: Protect customer data from unauthorized access and breaches.
Increased Customer Trust: Demonstrate your commitment to data privacy and build stronger relationships with your clients.
Reduced Compliance Risks: Minimize the risk of fines and reputational damage associated with GDPR non-compliance.
Improved Operational Efficiency: Streamline your verification processes and reduce manual effort.
iComply offers comprehensive KYB, KYC, and AML solutions designed with data privacy and security at the forefront. Contact us today to learn how we can help you achieve GDPR compliance and protect your customers’ personal information.
