About a-team Marketing Services
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Regulated Firms that Don’t Trust Electronic Identification Verification Risk Financial Crime

Subscribe to our newsletter

More than 36% of people in regulated firms who ‘can’t trust’ electronic identity verification technology and instead rely on manual checks are leaving their doors open to financial crime, according to research by anti-money laundering specialist SmartSearch.

This statistic, from SmartSearch’s 2023 annual survey of 500 compliance stakeholders across financial, accountancy, property and legal services, has doubled since the company’s 2022 survey, when 18% percent of people said they couldn’t trust the technology.

Focusing on the financial services sector, the survey shows 40% of compliance stakeholders can’t trust electronic ID verification technology.

“This indicates a significant dip in trust in electronic ID verification technology, despite its recommendation as part of the due diligence process in the Money Laundering and Terrorist Finance Act 2020,” says Fraser Mitchell, technical director at SmartSearch. “Many regulated firms may be unaware of this advice, hence the mistrust. Meantime, criminal gangs are washing billions through the UK’s financial systems. It’s a real concern.”

Looking at manual methods of identification, 87% of survey respondents in regulated firms are naively confident that they could identify a fake document such as a passport, driving licence or utility bill. Looking at the financial sector, the research shows 95% of people believing they could manually spot a fake ID, despite forgery risks.

Nicola Gifford, general counsel at SmartSearch, comments: “This is our third Electronic Verification Uncovered campaign. Our objective is to address common misconceptions among regulated firms, with a view to lowering the barrier to businesses adopting electronic verification as standard practice.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Generative and Agentic AI in Financial Markets: What the Data Really Shows

Date: 15 October 2026 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Artificial intelligence is reshaping financial markets – but the reality on the ground is more nuanced, more uneven, and more instructive than the headlines suggest. A new A-Team Insight research programme, drawing on responses from senior AI decision-makers at...

BLOG

Symphony Extends Secure Messaging Into AI, Voice Assurance and Off-Channel Controls

Symphony is growing beyond its origins in secure messaging as financial institutions look for controlled ways to connect workflows, communication channels, voice data and AI across regulated markets. In a recent interview with RegTech Insight, CEO Ben Chrnelich framed the development around infrastructure already embedded in the Symphony network: directory, identity, permissions, encryption and connectivity....

EVENT

TradingTech Summit New York

Our TradingTech Summit in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

AI in Capital Markets Handbook 2026

AI adoption in capital markets has moved into a more disciplined phase. The priority is now controlled deployment: where AI can be used safely, where it can deliver measurable value, and how outputs can be governed, monitored and evidenced. The 2026 edition of the AI in Capital Markets Handbook examines how AI is being applied...