EQUIFAX SUPPORTS THE FIGHT AGAINST MONEY LAUNDERING
The threat of money laundering is a growing concern for all kinds of businesses and as such has become a high priority for government and regulatory bodies. However, there are sectors of the financial services industry that believe not enough is being done to tackle this risk. For example, Michael Foot, the Financial Services Authority’s Managing Director with responsibility for deposit-takers, recently expressed concern about the current level of procedures in place to combat money laundering, stating that there was “a great deal of money-laundering going on throughout the UK”.
Equifax, a market leader in the provision of anti-money laundering solutions, is urging businesses to ensure that they are operating stringent processes from the very outset of a customer relationship to reduce the likelihood of money laundering.
Neil Lewis, Head of Equifax Fraud Services said: “The financial industry has to make sure that it uses best practices and takes steps to prevent fraud when dealing with companies and individuals. Equifax, in recognition of this need, offers a range of products and services designed to help businesses reduce the risk of aiding money laundering activities. Using a vast database of information, organisations can verify the identity of individuals and companies, including details of their directors.
“Our dedicated anti-money laundering experts are focused on working with organisations to find the most appropriate identity verification solutions for their particular needs,” said Lewis.
Central to these solutions is the principle of ‘Know Your Customer’ (KYC). This applies not only to acquiring new customers, but also to the ongoing monitoring of the transactions of existing customers.
Perhaps the biggest challenge faced by British business is taking on new customers when the true identity of the business or individual must be verified. And this needs to be achieved reliably, consistently, quickly and cost effectively. Through access to a range of powerful data sources which include 45 million individuals and nearly 4 million businesses, Equifax can help organisations establish:
§ That an individual or business exists
§ The individual lives at the address stated on the application – or the business is registered at the address stated
§ The individual or business claiming the identity on the application is who they say they are.
§ In the case of verifying the true identity of a business, Equifax can help by establishing that the company has identifiable owners and that its representatives can be located at the address provided – i.e. whether the company exists; who the shareholders are; where the source of funds come from.
“Through detailed research and analysis of our vast database of information and constant liaison with our customers, Equifax has managed to identify the main areas of concern for organisations today, which include identity theft, false identity, empty house fraud, account take over and money laundering. Whether it is concerning identity checks on consumers or businesses, Equifax can provide a comprehensive and flexible range of solutions” said Lewis.
“Businesses need to work together in the fight against fraud and money laundering. By sharing information we can create a united front and close the net on money launderers.”
Ends
June 2003
EQ03.36
Money Laundering Regulations were passed in 2001 in an attempt to combat the problem and imposed a new level of responsibility on finance providers. Companies that fail to take the appropriate precautions against money laundering risk legal penalties and fines as well as the loss of business credibility and reputation if a company fails.
