What Is Customer Due Diligence (CDD)?
Key Takeaways: Customer Due Diligence (CDD) is the process in which financial institutions and businesses verify their customers’ identities and assess potential risks. It involves collecting and analyzing personal and business data to detect suspicious activities and ensure regulatory compliance. The main goal of CDD is to prevent financial crimes, including money laundering, terrorism financing, […]
How to Prevent Money Laundering and Stay Compliant
In our previous article, we already covered what money laundering is and why it remains a serious risk to global financial systems. Now, let’s focus on how businesses can help stop it—and why their role is so important. Money laundering doesn’t just impact banks or regulators. It undermines trust, fuels criminal networks, and destabilizes economies. […]
What Is the EU AI Act? The First Comprehensive AI Regulation
Key Takeaways: The EU AI Act is the first comprehensive law designed to regulate AI technology across Europe. It aims to ensure that AI systems are developed and used safely, fairly, and transparently while protecting people’s rights. AI systems are classified based on risk. High-risk systems must meet strict standards, while low-risk systems have lighter requirements. […]
What Is KYC Fraud?
Key Takeaways: KYC fraud involves individuals providing false or misleading information during the Know Your Customer (KYC) process to deceive financial institutions or businesses. This deceptive practice undermines the integrity of financial systems and can lead to significant financial crimes, including money laundering and terrorist financing. Common tactics include identity theft, synthetic identity creation, and […]
What Is the California Privacy Rights Act (CPRA)?
Key Takeaways: The California Privacy Rights Act (CPRA) expands on the existing CCPA, providing consumers with additional privacy protections and greater control over their personal data. CPRA enhances consumer rights, enabling Californians to limit the use of sensitive personal information, correct inaccurate data, and opt-out of targeted advertising across multiple platforms. By introducing stricter protections […]
What Is Money Laundering and Why It Still Matters Today
Key Takeaways: Money laundering is the process of making illegal money appear legitimate. It typically involves placing illicit funds into the financial system, layering them through complex transactions, and integrating them back as clean income. It enables serious crimes and harms society. Laundering supports human trafficking, terrorism, corruption, and cybercrime—while also distorting economies and eroding […]
What Is eKYC (Electronic Know Your Customer)?
Key Takeaways: eKYC (Electronic Know Your Customer) is the digital process of verifying the identity of clients, meeting KYC requirements digitally. It assesses their suitability and the potential risks of illegal intentions in business relationships. eKYC eliminates the need for manual verification and paperwork, making it faster and more efficient. Additionally, digital verification methods often […]
What Is the Securities and Exchange Commission (SEC)?
Key Takeaways: The U.S. Securities and Exchange Commission (SEC) is a federal agency responsible for regulating the securities industry. It’s goal is to protect investors and ensure fair, orderly, and efficient markets. The SEC enforces securities laws to protect investors, requiring public companies to disclose critical financial information that aids in informed decision-making. The SEC’s […]
What Is the Commodity Futures Trading Commission (CFTC)?
Key Takeaways: The Commodity Futures Trading Commission (CFTC) is an independent U.S. government agency that regulates the derivatives markets. These markets include futures, options, and swaps, ensuring they operate fairly and transparently. The CFTC works to protect market participants and the public from fraud, manipulation, and abusive practices in the trading of derivatives. While the […]
