Know Your Customer. As part of AML, financial institutions need to establish customer identity and do Customer Due Diligence (CDD) to ensure that they know the source of the customer’s funds and determine the associated risk of doing business with them.
Anti-Money Laundering (AML) refers to the legislation that exists to prevent criminals from disguising illegally obtained funds. To disrupt and prevent corruption, terrorist financing and other criminal activities, governments enact AML regulations requiring banks and other financial institutions to ascertain that the customer and their funds are legitimate.
Politically exposed persons. These are individuals who, based on their position of power and influence, pose a higher risk of bribery and corruption. Due to their higher risk category, Customer Due Diligence requirements are more stringent (see Enhanced Due Diligence question).
A legislated responsibility of banks and other financial institutions to understand their customer’s activities and do an analysis of their risk of money laundering and terrorist financing. CDD is a critical element of effectively managing the institution’s risks and protecting itself against potential financial crimes and nefarious activities.
Enhanced due diligence (EDD) is the highest level of due diligence process that is a part of a risk-based approach to KYC. The EDD process is usually triggered by a high-risk customer or a suspicious transaction. In order to ensure a thorough investigation of the client’s risk, additional steps are taken during the process, such as determining ultimate beneficial ownership.
KYB or KY3P (Know Your Business or Know Your Third Party) is a regulatory procedure used to confirm a company’s legal status and compliance with anti-money laundering and other regulations.
Ondato accepts 10,000+ documents from 192 countries.
An ultimate beneficial owner (UBO) is a natural person (or persons) who owns or controls a legal entity and benefits from its profits. A natural person can also be considered a UBO when they own a bank account or receive a transaction.
Adverse media screening, also known as media monitoring or negative news screening, involves looking for negative news about a natural or legal person. This check is becoming increasingly significant in the customer due diligence (CDD) process, which is an essential aspect of KYC, KYB, and AML procedures.
Know Your Merchant (KYM) is a security measure that organizations are obligated to undertake upon entering into a relationship with a merchant.
The main aim of KYM is to perform a due diligence process on the new partner or client in order to verify their identity, establish the legitimacy of their service or business, and evaluate possible risks involved.
Usually, it takes around 60 seconds. However, this can vary depending on the countries or solution selected by the customer.
There is a 1-hour session for the entire identification process, which starts from the ‘Consent to the Processing of Personal Data’ to the photo of the document. When taking a selfie photo, a person has to follow certain instructions, i.e. to get closer, not to move, to retreat further and so on. If these instructions are not followed and the person does not move, the session is terminated after 30 seconds.
An identity verification service is used by businesses to ensure that users or customers provide information that is associated with the identity of a real person.
Verification is usually performed just once and authentication puts a process or processes in place for a user to prove that they are still that person.
If identification has an unfinished status, it means that the process was interrupted or canceled.
The User’s face is analyzed by Ondato AI, and if the images do not contain a live human the session is rejected as a spoof.
3D Depth Detection and Face Matching do not prove liveness. For example, masks and dolls are 3D but are not alive. FaceTec also utilizes sophisticated proprietary algorithms to detect concurrent human traits such as skin texture, reflections in the eyes, eye focus, pupil dilation, and many more.
Active liveness is an is an ISO certified liveness check technology, which ensures automated liveness detection. It contains 3D FaceMap and is not publicly available online. Ondato ensures the user is physically present, and prevents photos, masks, or deepfakes from fooling the system. 3D face scan – this funcionality checks if a person willing to start identification process is real and prove’s liveness of a person. It requires user to perfrom set of instructions to prove that he or she is a live person. Instructions are as follows: ‘move closer’, ‘frame your face’ ‘move away’.
Data controller/service providers are Client companies which are using Ondato service. The clients are responsible for any changes and set rules on how to proceed with their users data.
Ondato, acts as the the data processor for our clients. We are an IT company which provides technological solutions for companies, which need to comply with AML/CFT regulation or simply remotely identify their future or current customers.
Ondato provides services to organizations in more than 195 countries. As a result, each data source is unique, as are the collection methods when establishing a file. What is consistent across all data providers is adherence to providing notice and requesting options from users before collecting any data, as well as adherence to security and privacy best practices in protecting this information.
Ondato database is updated once every day.
User data storage depends on every client’s Service Agreement.
Ondato is a tech company that streamlines KYC and AML-related processes.
October 3rd 2018 company officially started it’s operations under Ondato brand name.
Ondato HQ are located in London (UK) and R&D in Vilnius (Lithuania)
Ondato offers solutions to 8 main industries: Financial Services, Insurance, Sharing Economy, Telecommunications, Adult Content, Gambling, Legal and Cryptocurrency, however, they can be applied in a variety of different industries.
Safety And Compliance
Ondato takes the security of systems seriously and our priority is to pay close attention to data security. The data servers and information infrastructures are protected with 24/7 monitoring. Ondato is GDPR compliant and certified by International security standart (ISO/IEC 27001:2013).
Ondato undergoes regular audits and is certified by International security standart ISO/IEC 27001:2013. As well as ISO/IEC 30 107-3 level 1 and level 2. It defines how Ondato perpetually manages security in a holistic, comprehensive manner.
The data servers and information infrastructures are protected with 24/7 monitoring.
Ondato is based on the basic requirements of AML regulation, but this flow can be customized.
Ondato OS is a pioneering compliance platform that incorporates all the necessary KYC and AML tools and services for a safe client onboarding and lifecycle management.
With Ondato OS, financial institutions can better understand their risk appetite through risk-based management of new and existing customers.
Efficiency is guaranteed by enhanced process automation, which lowers operating costs and minimizes penalties from regulatory authorities.
Ondato Risk Scoring delivers an advisory risk assessment that informs financial institutions of their exposure to AML risk across their customer portfolio.
The tools present each customer’s risk score, enabling companies to make informed decisions on managing and lowering a customer’s risk.