Efficient AML check: digital identification made easy

The requirements of the Anti-Money Laundering Act (AMLA) are a challenge for many companies - especially in digital business models with high customer volumes and strict regulations. Industries such as online dating, gambling, telecommunications, financial services and e-commerce must ensure that they reliably verify the identity of their customers in accordance with the law. This involves not only the collection of customer data, but also a comprehensive AMLA check that takes all data and risk factors into account.

But what are the specific requirements of the Anti-Money Laundering Act (AMLA)? And how can digital solutions optimise your verification processes for identification?

Why are identification and AML checks essential?

An AML audit not only serves to fulfil legal requirements. It also plays a key role in minimising risk for your company. The Anti-Money Laundering Act aims to make financial flows transparent and prevent criminal activities such as money laundering or terrorist financing at an early stage. Companies that do not fulfil these requirements expose themselves to considerable risks - both legal and economic.

For example, identity fraud (including with AI) and forged documents are a serious problem. In online services, fraudsters often try to gain access to systems or assets by manipulating data. A secure verification process protects both the company and its users from such dangers.

In addition, customers today expect fast and smooth verification processes. A process that is too lengthy or cumbersome often leads to new users dropping out before the registration process or transaction has been completed. This can mean a significant loss of revenue, especially for digital business models. The combination of compliance and a seamless user experience is therefore crucial to a company's success.

Example:
Imagine a new customer wants to create a customer account with you and has to go through a video identification process to verify her identity. If she has to wait a long time before she is connected to someone, this is a deal-breaker for her. She cancels the process and switches to a faster provider. A smooth and automated identification process is crucial to reducing these cancellation rates. The rate of successfully verified users will increase significantly.

Legal requirements for identification and AML checks

The Anti-Money Laundering Act (Section 11 GwG) specifies in detail which identification measures are required. According to the law, companies must establish the identity of their customers on certain occasions in order to prevent money laundering. The obligations include the collection of information such as name, date of birth, address and ID number.

An important part of the check is also determining the beneficial owner if the customer is acting on behalf of a company. AML-compliant identification offers legal certainty and protects against regulatory problems.

The law specifies concrete situations in which identification is mandatory:

1. New business relationships:
   According to Section 11 (1) No. 1 GwG, identification is required when a new business relationship is established. However, this does not apply to every type of business relationship. Everyday retail businesses, such as an online shop for clothing, are generally exempt from this obligation.
   The regulations are primarily aimed at industries with an increased risk of money laundering, including financial service providers, gambling providers and estate agents.
   
   
2. High-volume transactions:
   According to Section 10 (6) GwG, identification must also be carried out if a single transaction or several linked transactions exceed the amount of 10,000 euros. This regulation applies to cash payments as well as bank transfers and the like.
   
   
3. Suspicious cases:
   If there are indications of money laundering, companies are obliged to check the identity of their customers and, if necessary, submit a suspicious activity report. The AMLA also provides for detailed verification and documentation obligations in this regard.

The key elements of identification in accordance with the AMLA include

• Verification of official documents: Customers must present a valid identification document (identity card, passport). This document is checked for authenticity and validity.
• Identification of beneficial owners: In the case of legal entities, companies must find out who actually exercises control over the organisation.
• Risk management: Depending on the individual circumstances - e.g. in the case of politically exposed persons (PEP check) - additional measures must be taken.
• Documentation and storage: The data collected must be fully documented and stored securely for at least five years.

Challenges in the implementation of an AML audit

Many companies often only realise the complexity of the AML audit when they actually start implementing it. Manual processes quickly reach their limits as they are time-consuming, error-prone and difficult to scale. This often leads to the following challenges:

1. Time-consuming training and manual processes:
   Performing manual review processes is heavily dependent on the availability of trained employees. Learning and continuous training in checking documents is time-consuming and cannot be scaled quickly enough to keep up with increasing demand. Companies reach their capacity limits, which frustrates new users.
   
   
2. High cancellation rates:
   Long and complicated verification processes put many customers off. This is particularly true for digital services, where users expect quick and uncomplicated processes.
   
   
3. Lack of process integration:
   In many companies, checks and risk analyses are not sufficiently integrated into existing systems. This leads to inefficient workflows, slow data transfers and increases the operating costs of identity verification.
   
   

Digital solutions for AML-compliant identification

Digital verification procedures enable companies to implement the requirements of the Anti-Money Laundering Act quickly and efficiently. (Partially) automated systems not only reduce the manual workload, but also ensure greater accuracy and scalability.

The key technologies include

• Biometric verification: An (automated) comparison of the face with the ID card image provides additional security.
• NFC ID card data verification: Data can be read directly from electronic ID cards and checked in a tamper-proof manner.
• Automated document verification: AI-based systems recognise forged documents in seconds.

PXL Vision: Your partner for efficient AML checks

We support companies in optimising their processes in connection with identification and AML checks. Our technologies are flexibly customisable and can be seamlessly integrated into existing systems.

Our core services:

• Automated document verification: Fast and secure verification of official ID documents.
• Biometric verification: facial recognition and liveness detection prevent manipulation by forged identities.
• Scalability: Our solutions grow with your company and are ideal for digital business models with high customer numbers.

With our solutions, companies can both ensure compliance with legal requirements and significantly accelerate onboarding.

Why act now? Optimise your AML check

The requirements for identification in accordance with the Anti-Money Laundering Act are a challenge. Businesses that adopt modern technologies at an early stage not only ensure compliance, but also improve the customer experience during onboarding.

Fast and secure verification processes strengthen customer trust and improve operational efficiency. Use the innovative solutions from PXL Vision and future-proof your inspection processes.