Picture this: A luxury apartment in a bustling city is purchased for cash by an unknown buyer through a string of anonymous shell companies. The sale raises no eyebrows, but behind the scenes, a complex money laundering operation is underway. From illicit origins to seemingly legitimate assets, this is the journey of “dirty money”—and the fight against it begins with Anti-Money Laundering (AML) checks.
Let’s follow the path of laundered money through its three stages—placement, layering, and integration—and see how robust AML processes can break the chain at each step.
Stage 1: Placement — Getting Illicit Cash Into the System
It starts with a duffel bag of cash in a bustling financial district. The launderer’s challenge? Converting a pile of questionable money into something less conspicuous. Enter placement, where funds are introduced into the financial system.
The Tactic: Instead of depositing a large sum into a single account (a major red flag), the launderer sends small amounts across multiple accounts at different branches—also known as “smurfing.” Some of the funds are funneled into luxury car purchases or jewelry, quickly flipped for cash.
The Risk: At this stage, banks may notice unusual deposits or sudden asset purchases. But if no AML checks are in place, the funds slide through undetected.
How AML Helps:Customer due diligence (CDD) kicks in here—verifying identities, tracking transaction patterns, and flagging customers depositing amounts that don’t match their profiles. Advanced systems automatically cross-check data against watchlists and issue alerts for suspicious activity.
Stage 2: Layering — Disguising the Money’s Origins
The launderer now faces the next hurdle: making the funds untraceable. In the layering phase, the money is moved across accounts, companies, and borders to obscure its origins.
The Tactic: The funds pass through shell companies, offshore accounts, and even fake invoices for “business expenses.” Wire transfers bounce from one country to another, each hop making the trail more complex.
The Cover Story: To the outside world, it looks like a series of standard business transactions—payments for consulting services or shipments that never existed.
How AML Helps: This is where transaction monitoring tools shine. They flag unusual patterns, such as frequent international transfers to high-risk regions or round-dollar amounts that match no legitimate business activity. Machine learning algorithms detect when these activities deviate from normal behavior, even in large, global transaction flows.
Stage 3: Integration — Making the Money Look Legitimate
Once the money has been sufficiently disguised, it’s time to bring it back into the economy—cleaned and ready for “legitimate” use. This is the integration phase, where illicit funds reappear as real estate investments, stock portfolios, or lavish lifestyle purchases.
The Tactic: The launderer buys a $5 million penthouse outright, claiming the money came from the sale of a successful business. They might also repay large loans or invest in companies with stable returns, embedding the funds into the economy.
The Challenge: At this stage, the money looks like it belongs. Without context, it’s difficult to distinguish legitimate earnings from laundered funds.
How AML Helps:Enhanced due diligence (EDD) is key here. When a transaction or customer’s background raises red flags—such as ties to politically exposed persons (PEPs) or untraceable revenue sources—EDD digs deeper, collecting additional data and scrutinizing high-value purchases. Automated systems provide detailed audit trails, ensuring nothing is missed.
The Human Cost of Failure
When laundered money flows freely, the consequences are far-reaching—fueled criminal enterprises, destabilized economies, and reputational damage for financial institutions. But with robust AML processes, institutions can stop dirty money in its tracks, ensuring their systems don’t become conduits for crime.
A Future-Ready AML Strategy
Gone are the days when manual audits were enough. In today’s landscape, AML programs must be adaptive, automated, and vigilant. Real-time monitoring, machine learning, and secure data processing are no longer luxuries—they’re necessities.
The difference between catching a launderer at “placement” rather than “integration” could be millions in fines—or worse, a reputation that’s impossible to repair. By embracing advanced AML solutions, financial institutions can protect not just their businesses, but the communities they serve.
Many US business managers believe that if their operations are strictly domestic, they don’t need to worry about global sanctions, PEP (Politically Exposed Person) screening, or AML (Anti-Money Laundering) compliance. This assumption may seem logical, but it’s a myth that can lead to serious consequences.
Let’s break down the common myths and set the record straight on why global screening matters—even for businesses that only operate within the US.
Myth #1: If My Business Is Domestic, I Don’t Need Global Screening
Fact: Even if you only serve US customers, their connections might not stop at the border. A customer or vendor could have ownership ties to a sanctioned individual overseas, or they might be based in a high-risk jurisdiction.
Without global screening, these connections can easily slip through unnoticed, leaving your business vulnerable to regulatory penalties and reputational harm.
For example, imagine processing a payment for a US-based entity, only to discover later that it’s controlled by a sanctioned party in another country. The consequences? Fines, investigations, potential jail time, not to mention – a major and longstanding hit to your company’s reputation.
Myth #2: US Regulators Only Care About Domestic Compliance
Fact: US regulators like OFAC and FinCEN expect businesses to monitor global connections. They understand how intertwined the world is today and require you to screen for international risks.
Neglecting global compliance can result in steep fines and even loss of operating licenses. Worse, it can damage your relationships with partners and customers. Staying ahead of these expectations is key to avoiding regulatory pitfalls.
Myth #3: Global Screening Is Too Complicated
Fact: While global sanctions lists and PEP databases are complex, advanced tools make screening manageable. Platforms like iComply provide real-time access to global data, automating much of the heavy lifting.
These tools identify hidden risks, such as complex corporate structures designed to obscure ties to high-risk individuals or sanctioned entities. With the right technology, global compliance becomes a streamlined process that protects your business and saves time.
Myth #4: Global Coverage Only Matters for Multinational Companies
Fact: Even small businesses can benefit from global screening. Suppose you’re a US-based firm working with a foreign supplier. If that supplier has ties to financial crime or sanctions violations, your business could be held accountable.
By implementing global screening now, you safeguard your operations and build a foundation for growth. Plus, when it’s time to expand into international markets, your compliance framework will already be in place.
The Role of Technology in Global Compliance
Managing global compliance manually is a daunting task, but technology makes it easier. iComply’s platform provides:
Real-time global data for sanctions and PEP screening.
Robust tools to uncover hidden risks in complex ownership structures.
Automated workflows to streamline screening, refresh, and review processes.
These tools help businesses like yours stay compliant, efficient, and ready for growth.
The Bottom Line
In today’s interconnected world, no US business is truly isolated from global risks. Whether it’s sanctions screening, PEP monitoring, or AML compliance, adopting a global perspective is essential for protecting your operations and building a sustainable future.
By busting the myths and embracing the realities of global compliance, your business can avoid pitfalls, earn trust, and thrive in a competitive marketplace.
Imagine needing to notarize an important document, but the nearest notary is miles away. The alternative? Sending a photo of your ID via email or uploading a selfie to a platform. While convenient, these methods are rife with vulnerabilities—photos can be stolen, identities forged, and trust compromised. Enter liveness detection, a technology that ensures the person verifying their identity is physically present and not a spoof created with static images or videos.
Here’s a look at how liveness detection transforms workflows like notarizing identity documents and why businesses should move beyond outdated methods like selfie uploads or emailed IDs.
The Traditional Workflow: Notary Visits and Emailed IDs
In a manual identity verification process, a customer gathers their identity documents and heads to a notary. The notary inspects the ID, validates it against the customer’s appearance, and notarizes the document.
Alternatively, some platforms ask customers to email a photo of their ID and a selfie for verification. While these steps eliminate travel, they introduce new risks:
Photo Spoofing: Fraudsters can easily find or fabricate a customer’s image from online searches.
Static Verification Flaws: Static selfies and emailed images lack the depth to confirm whether the person is present.
Trust Erosion: Customers are increasingly wary of sharing sensitive documents via unsecured emails.
These workflows can be time-consuming, risky, and frustrating for customers and businesses alike.
The Liveness Detection Revolution
Liveness detection changes the game by verifying that an individual is physically present during the identity verification process. Unlike static photos or emails, this technology uses advanced algorithms to detect subtle, dynamic cues—like blinking, head movement, or depth perception—to confirm the presence of a real person.
Here’s how this plays out in a modern, digital verification process:
Step 1: Customer Initiates Verification
Using a secure KYC or KYB portal, the customer is prompted to upload a government-issued ID and participate in a quick liveness detection session.
Step 2: Liveness Detection in Action
The system guides the customer through simple actions, such as turning their head or blinking, while simultaneously scanning their biometric features. These real-time movements make it nearly impossible for fraudsters to use photos, videos, or masks to spoof the system.
Step 3: Automated Cross-Checks
Advanced AI validates the ID’s authenticity, matches it to the live biometric data, and cross-references the information against global sanctions lists or other risk databases.
Step 4: Instant Results
Within seconds, the verification is complete, and the business receives a secure, detailed report confirming the customer’s identity.
Why Selfie Uploads and Emailed IDs Are Risky
While selfie uploads and emailed IDs are still common, they’re increasingly insufficient in today’s threat landscape:
Easy to Spoof: With a simple Google search or basic editing tools, fraudsters can create convincing forgeries.
Lack of Depth Analysis: Static photos can’t confirm whether a person is physically present.
Data Security Concerns: Sensitive documents sent via email are prone to breaches and unauthorized access.
For businesses focused on security, compliance, and trust, relying on these outdated methods is no longer viable.
The Role of KYC and KYB Portals
With integrated KYC and KYB portals, businesses can deliver secure, seamless identity verification at scale. Here’s how these solutions enhance the liveness detection process:
Scalability: Both individual customers and businesses can verify identities in real-time without the need for physical presence.
Privacy-First Architecture: Biometric data is processed securely, adhering to regulations like GDPR.
Ease of Use: Customers enjoy a frictionless experience, completing verification from their smartphone or computer in minutes.
Compliance Made Simple: Built-in checks for AML regulations and global sanctions ensure adherence to the highest standards.
Whether verifying a customer for a financial transaction or conducting due diligence on a new business partner, these portals provide an all-in-one solution for secure identity verification.
Building Trust Through Better Verification
Liveness detection isn’t just about meeting regulatory requirements—it’s about building trust in every interaction. When customers know that their identities are verified securely, they’re more likely to engage confidently with your business.
For businesses, adopting advanced liveness detection technologies through KYC and KYB portals reduces fraud, streamlines workflows, and protects sensitive data. It’s a win-win for compliance and customer satisfaction.
The Future of Secure Verification
As fraudsters become more sophisticated, businesses must stay one step ahead. Liveness detection, paired with robust KYC and KYB solutions, offers a secure, scalable way to verify identities while delivering a seamless user experience.
Gone are the days of emailing IDs or relying on static selfies. The future of identity verification is dynamic, secure, and designed to build trust at every step. Whether notarizing an identity document or verifying a business partner, liveness detection ensures that the person on the other side of the screen is exactly who they claim to be.
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.
Customer Identification Procedures (CIP) have long been a cornerstone of regulated industries like financial services and real estate. But for the businesses implementing them, the experience can feel like a balancing act—managing compliance obligations, maintaining security, and delivering a seamless customer experience.
Fast forward to 2025, and technology is reimagining how businesses handle CIP. By replacing manual workflows with scalable, digital-first solutions, companies can verify customers more efficiently, prevent fraud, and ensure global regulatory compliance—all while keeping the customer journey smooth and secure.
The Manual Method: A Customer’s Perspective
Imagine this: a customer walks into a branch office to verify their identity. They’re armed with multiple documents—government-issued ID, proof of address, and perhaps even supplementary paperwork. A staff member painstakingly photocopies each piece, manually inputs the data into a system, and cross-references it with additional sources.
For the customer, the process is tedious and time-consuming. For the business, it’s an operational bottleneck. Manual CIP methods are prone to:
Delays: Processing times can stretch from hours to days.
Errors: Manual data entry increases the risk of inaccuracies.
Fraud Risks: Human oversight often fails to detect sophisticated forgery or tampering.
This traditional approach, while once sufficient, is increasingly out of step with modern customer expectations and regulatory demands.
The 2025 CIP Experience: Seamless and Scalable
Now, imagine a different scenario. The same customer initiates the process from their smartphone. They upload a photo of their government-issued ID and snap a quick selfie. Within seconds, advanced technology verifies the document’s authenticity, matches the selfie to the ID, and cross-checks the data against trusted sources like global sanctions lists.
For businesses managing hundreds—or thousands—of customer verifications, this shift to digital CIP is transformative. Two key innovations are leading this change:
Turnkey Solutions for KYB and KYC
Modern CIP platforms are built to handle both Know Your Business (KYB) and Know Your Customer (KYC) needs. These solutions are designed to scale, offering:
Automated Data Validation: Verifications are completed in seconds, reducing wait times and manual effort.
Multi-Jurisdictional Support: Compliance with global regulations becomes seamless, even for businesses operating across multiple regions.
Biometric Verification: Facial recognition or fingerprint matching adds an extra layer of security, ensuring that identity fraud is mitigated at the source.
Scalability Without Complexity
Unlike legacy systems, digital CIP solutions don’t require complex custom builds. Turnkey options like iComply’s KYB and KYC modules allow businesses to roll out fully compliant identity verification systems quickly, without sacrificing flexibility or security.
Building a Smarter CIP Process
A smarter CIP process isn’t just about speed—it’s about trust, security, and adaptability. In a digital-first approach, businesses can:
Enhance Security with Advanced Technology: AI and biometric tools identify anomalies, verify documents, and flag high-risk profiles in real-time.
Ensure Data Privacy Compliance: Privacy-first architectures, such as edge computing, process sensitive customer data locally, meeting regulatory standards like GDPR and CCPA.
Reduce Costs and Complexity: By automating processes, businesses can lower operational expenses and eliminate redundant workflows.
For companies like Dye & Durham, where large-scale customer verifications are routine, these advancements make CIP not only a compliance task but also a strategic advantage.
CIP as a Customer-Centric Opportunity
The days of viewing CIP solely as a regulatory hurdle are over. In 2025, businesses recognize that customer identification is a touchpoint to build trust and loyalty. A seamless onboarding experience shows customers that their data is secure and their time is respected.
By adopting scalable, digital solutions, organizations can enhance their CIP processes without compromising on compliance or the customer experience. The result? Faster, safer, and more reliable identity verification that aligns with both business goals and customer expectations.
In an industry where trust is paramount, turning CIP into a streamlined, secure process is a powerful way to differentiate your business and build lasting relationships.
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.
“Chandy,” is a technology and risk expert with executive experience at Boston Consulting Group, Citi, and PwC. With over two decades in financial services, digital transformation, and enterprise risk, he advises iComply on scalable compliance infrastructure for global markets.
Thomas is a global tax and compliance expert with deep specialization in digital assets, blockchain, and tokenization. As a partner at MME Legal | Tax | Compliance, he advises iComply on regulatory strategy, cross-border compliance, and digital finance innovation.
Thomas is a renowned identity and cybersecurity expert, serving as CTO of Connection Science at MIT. With deep expertise in decentralized identity, zero trust, and secure data exchange, he advises iComply on cutting-edge technology and privacy-first compliance architecture.
Rodney is the former President of ADP Canada and international executive with over two decades of leadership in global HR and enterprise technology. He advises iComply with deep expertise in international service delivery, M&A, and scaling high-growth operations across regulated markets.
Praveen is a serial entrepreneur and technology innovator, known for leadership roles at Lucent Bell Labs, ChargePoint, and the Stanford Linear Accelerator. He advises iComply on advanced computing, scalable infrastructure, and the intersection of AI, energy, and compliance tech.
Paul is a Canadian RegTech leader and founder of Maple Peak Group, with extensive experience in financial services compliance, AML, and digital transformation. He advises iComply on regulatory alignment, operational strategy, and scaling compliance programs in complex markets.
John is a seasoned business executive with senior leadership experience at CIBC, UBS, and Accenture. With deep expertise in investment banking, private equity, and digital transformation, he advises iComply on strategic growth, partnerships, and global market expansion.
Jeff is a former CFTC official and globally recognized expert in financial regulation, fintech, and digital assets. As founder of Bandman Advisors, he brings deep insight into regulatory policy, market infrastructure, and innovation to guide iComply’s global compliance strategy.
Greg is a seasoned investment banker with over 35 years of experience, including leadership roles at BMO Capital Markets, Morgan Stanley, and Citigroup. Greg brings deep expertise in financial strategy and growth to support iComply's expansion in the RegTech sector.
Deven is the former President of S&P and a globally respected authority in risk, data, and capital markets. With decades of leadership across financial services and tech, he advises iComply on strategic growth, governance, and the future of trusted data in AML compliance.
