DNB: “Fintechs can help combat financial crime”

Preventing money laundering

The DNB executive board member and former ESMA Chair states that trust in the financial sector in the Netherlands is already high. Fintechs could strengthen that trust even more, for example by contributing to the effectiveness of the fight against financial crime. 

At Blanco, we speak to financial companies who are faced with strict legislation to combat money laundering or terrorist financing on a daily basis. We know the other side of the coin: complying with these laws can be costly and put pressure on the profitability or even the future prospects of financial businesses. 

With our scalable, automated solution for KYC processes, we want to help you to comply with this legislation cost-effectively. This way, money laundering and terrorist financing are countered without putting a strain on the future prospects of a company.

Use of Artificial Intelligence (AI)

There are various ways in which fintechs can help to combat financial crime. Maijoor gives the example of the use of AI in verifying the identity of a remote customer. Using this technology, it is possible to check whether the photo on an identity card matches the customer. It also reveals whether the photo is of a real person and not a photoshopped or deepfake image. Blanco’s KYC module makes use of this technology: with the integrated AI application of our partner Mitek, it becomes possible to check the authenticity of a passport. 

News media tracking

Another way fintechs can help combat financial crime is by helping financial firms screen adverse media. Knowledge of and access to adverse information about a (potential) customer can help financial firms to identify potential risks such as fraud, money laundering, organised crime, drug trafficking or bribery.

Due to the volume, speed and dynamic nature of information, it is very difficult for companies to process and assess all the information that is generated on a daily basis. By using state-of-the-art machine learning technology, all information can be processed effectively and efficiently in a reliable manner. For the ​‘adverse media’ functionality, Blanco uses ComplyAdvantage to deploy this innovation.

Crypto: a new domain

There has been a lot of fuss about cryptocurrencies such as Bitcoin; there was even a call from the Central Planning Bureau (CPB) to ban this digital currency. The CPB expressed its concerns about the financial consequences of a crash of cryptocurrencies, but cryptocurrencies also bring other risks. DNB’s Maijoor explicitly mentions the concern that cryptos may facilitate criminal activities, a fear that is shared by European legislators. A catch-up in laws and regulations for crypto companies should therefore come as no surprise.

Blanco is already offering smart KYC solutions to a number of crypto providers so that this group can also comply with laws and regulations more easily. 

Finally

At Blanco, it is not just about tech. We believe in the symbiosis between man and machine. Innovation allows you to comply with the latest legislation in a scalable, cost-effective way. So you can focus on what’s most important: your customers.