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

Recorded Webinar: Client onboarding – how developments in tech and automation can help optimise entity data management and improve KYC

Financial services providers spend billions of dollars a year on Know Your Customer (KYC), client onboarding and due diligence. Yet even with vast investment, these processes rarely run smoothly. They also fall short of delivering a good client experience and fail to cut down on financial crime. At the heart of the problem–and solution–is data....

BLOG

Reframing Corporate KYC: Encompass Targets Back-Book Exposure with Scalable EC Review

For many SME focussed banks, KYC investments have streamlined the onboarding journey but legacy KYC records – the back-book – often remain dormant until a regulatory inspection, or an enforcement case at a peer institution, forces a wholesale review. The challenge that follows is how to remediate at scale, with urgency, and without the need...

EVENT

TEST Event page 2

Now in its 15th year the TradingTech Summit London brings together the European trading technology capital markets industry and examines the latest changes and innovations in trading technology and explores how technology is being deployed to create an edge in sell side and buy side capital markets financial institutions.

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...