GIACT launches platform to address new Beneficial Ownership regulations

GIACT Systems has launched a digital platform to address the new FinCEN rule on beneficial ownership.

The company, which helps positively identify and authenticate customers, said the platform is built to directly address the Financial Crimes Enforcement Network (FinCEN), US Department of the Treasury ruling requiring additional Customer Due Diligence (CDD) on financial institutions’ legal entity customers’ beneficial ownership.

Beneficial ID claims to the first all-in-one digital solution to provide beneficial ownership information collection and KYC, OFAC verification.

The new CDD requirements impact financial institutions, including banks, mutual funds, issuers, credit unions, money service businesses, etc., that engage in B2B transactions. It also effects their legal entity customers, including corporations, LLCs, limited partnerships, general partnerships, business trusts, etc., formed inside and outside the U.S.

A beneficial owner includes individuals who own 25% or more of the equity interest of the legal entity and/or an individual with significant responsibility to control the legal entity at the time a new account is opened. The rule is effective May 11, 2018 and will have an immediate impact on applicable new account openings.

Beneficial ID claims it will significantly streamline the estimated over $250m FinCEN projects financial institutions will spend on staff training in the first year of implementation.

It will help financial institutions to process beneficial ownership forms, including certifications, meet OFAC and KYC requirements, and collect and verify the beneficial owner(s) of a legal entity customer.

“The new beneficial ownership requirements will be very labor-intensive for many financial services firms unless they can find ways to automate a substantial portion of it. The upfront and ongoing data requirements also have potential adverse impacts to the customer experience,” said Julie Conroy, Research Director, Aite Group. “GIACT’s solution addresses both of these challenges, automating the data collection and verification in a customer-friendly manner.”

The GIACT EPIC Platform product suite offers businesses a set of enrollment, payment, identity and compliance solutions.

GIACT claims to be the only financial technology provider to offer a complete set of enrollment, payment, identity, compliance, and mobile solutions built on a single platform, the EPIC Platform.

The company provides real-time identity verification that utilises both traditional and non-traditional data with over 100,000 attributes. It also eliminates paper-based processing and validate emails and social media presence, helping the user’s customers strengthen identity proofing processes.

GIACT’s technology solutions are currently deployed at over 1,000 companies, ranging in size from Fortune 500 companies to sole proprietors and spanning a diverse range of industries.

Copyright © 2018 RegTech Analyst


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