EU Regulations And Directives

What are the EU Regulations?


Regulators challenged by innovative fintech companies are constantly redesigning legislation to protect customers, businesses and their business customers from unlawful activities that could jeopardize the integrity and security of all of these stakeholders, including the identity check is used. Anti-Money Laundering (AML) is a legal protection that protects companies and their customers from illegal activities that are geared to monetary values.


What are The Purpose of EU Regulations?


The Fifth European Money Laundering Directive (5AMLD)

The Fifth European Money Laundering Directive (5AMLD) of 2018 has promoted the possibilities to develop technologies that can be used to ensure the electronic remote verification of identity. Special mention should be made in point 22, which states that the precise identification and verification of natural and legal persons' data is essential for the fight against money laundering or terrorist financing. "The latest technological developments in the digitization of transactions and payments enable secure remote or electronic identification. "


What are the AML Compliance Processes?


AML Compliance, The European regulation for companies, and users from illegal transactions protective is Money Laundering Directive (6AMLD), which was adopted in the 2015th It is the main legal instrument to prevent the use of the Union's financial system for the purpose of money laundering and terrorist financing. The aim is to protect the financial system through the prevention, detection and investigation of money laundering and terrorist financing.


The identity verification requirement is also required to enforce is set out in Article 14, which states that the EU Member States must require the customer to verify the customer prior to entering into a business relationship and before engaging in transactions. In July 2018, the Fifth Anti-Money Laundering Directive (5AMLD) was adopted with an electronic review amendment. The financial services environment is thriving with many new online services and companies, requiring changes to existing regulations.


On the basis of this change, Member States must ensure that the obliged organizations to which the customers are referred are taking appropriate measures to ensure that customers provide valid copies of the identification and verification data. "Immediately, on request" and with an extension: " including, where available, data collected by electronic means of identification, relevant fiduciary services in accordance with Regulation (EU) No 910/2014 or other secure, long-distance or electronic identification methods which: regulated, recognized, approved or accepted by the competent national authorities ".

In accordance with the AML, Sanction Scanner supports to avoid any potential risk of money laundering, terrorism and proliferation, identifying and reporting unusual or suspicious transactions.


AML in Sanction Scanner practice

"The security of the people should be the highest law."(Marcus Tullius Cicero)

1. From the law to business practice

Anti-Money Laundering (AML) and Customer Knowledge (KYC) are concrete actions that result from the above-mentioned laws and regulations. This also determines the requirements for Sanction Scanner’s AML compliance. We have taken over these practices without hesitation to protect our market and all those involved in it. Sanction Scanner’s in-house AML software specializes in investigating and taking action on all suspicious activity and people in the marketplace.


2. The integrity of the enterprise, security of the customers

By adopting AML procedures, Sanction Scanner not only acts responsibly towards the required compliance but also maintains the integrity of the business without restrictions. In this way, Sanction Scanner also provides a secure and legally shielded environment for the activities of investors in the marketplace. With Sanction Screening Services, you can check the sanction lists all over the world. There are various sanctions lists applied by countries or organizations.


3. KYC & AML, on a global level

According to the United Nations Office on Drugs and Crime, the amount of money laundered worldwide in one year is estimated at between 2 and 5% of global GDP, which is between 800 billion and 2 trillion. Dollars equal. In order to achieve compliance with AML and KYC, financial technology companies are developing and implementing digital anti-fraud methods. There are numerous FinTech companies offering identity verification services to other FinTech companies. In short, Sanction Scanner is a service offered and used by companies involved in financial services to ensure that your business complies to AML laws with Remittance & Payment Screening, Customer & Merchant Onboarding/Monitoring and Real-Time Transaction Monitoring features.


4. Privacy and data security

Sanction Scanner has also implemented the General Data Protection Regulation 2016/679 (GDPR) of the European Union with all its policies, procedures and processes. All customer data received as part of the AML compliance process is recorded and processed in compliance with GDPR.

Request a demo and learn how Sanction Scanner prevents your firm from the Financial Crime.