# AML and identity checks: Lessons learned from the NatWest case . Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-09-08 Category: BANKING Category URL: https://financedigest.com/category/banking Meta Title: How to Implement Watertight AML Systems: Expert Advice from Meta Description: Learn from NatWest's money-laundering case to build customer trust. Strengthen AML procedures with electronic verification and rigorous security checks. URL: https://financedigest.com/aml-and-identity-checks-lessons-learned-from-the-natwest-casehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/close-up-of-eye-with-digital-lights-and-christian-crossbqeug1mga1-1736837923727-compressed.jpg) - Experts share advice to implement watertight AML systems NatWest’s landmark money-laundering case has dealt a huge blow to consumer trust in online banking; an industry that more than three quarters (76%) of UK consumers already admit they don’t fully trust, according to research from anti-money laundering specialists, SmartSearch1. The ongoing lawsuit being faced by the high street bank has put others on high alert to the threats and scale of money laundering in the UK, but experts warn this case is the tip of the iceberg when it comes to financial crime in the UK. So, [what can businesses learn from NatWest to avoid the](https://www.financedigest.com/what-b2b-businesses-can-learn-from-b2c-e-commerce.html "What B2B businesses can learn from B2C e-commerce") same costly pitfalls? John Dobson, CEO at [SmartSearch](https://www.smartsearch.com/), shares his expert insight: **[Customer trust is](https://www.financedigest.com/how-to-maintain-customer-loyalty-and-trust-in-the-face-of-a-pandemic-and-digital-competition.html "How to maintain customer loyalty and trust in the face of a pandemic and digital competition") shaken** Among the high street [banks there really are no two ways](https://www.financedigest.com/bank-of-the-future-challengers-leading-the-way-to-cloud-adoption.html "Bank of the future – challengers leading the way to cloud adoption") about it, your customers must trust that their money is safe with you. Never has this been more prevalent either, with the pandemic forcing many into online [banking after the closure of more than 200 branches](https://www.financedigest.com/are-white-label-branches-the-future-for-retail-banking.html "Are white-label branches the future for retail banking?") around the country last year2. With NatWest now facing criminal prosecution3 after the Financial Conduct Authority (FCA) accused them of failing to appropriately scrutinise numerous suspicious cash payments, this scandal has not only damaged [the bank’s reputation but has also impacted consumer trust across](https://www.financedigest.com/how-can-banks-overcome-the-tech-trust-gap.html "How can banks overcome the tech trust gap?") the industry. We know from our research that trust is paramount, so it’s more important now than ever [that businesses do everything possible to instil trust](https://www.financedigest.com/trusting-your-gut-how-to-harness-the-power-of-your-business-instincts.html "Trusting your gut: how to harness the power of your business instincts") among their customer base. **Better electronic identity verification** This isn’t the first time we’ve seen a case of this scale in recent years. [Australia’s Commonwealth Bank fell into similar difficulties in 2018 and ended up paying](https://www.financedigest.com/shell-pay-battle-escalates-at-prelude-lng-off-australia.html "Shell pay battle escalates at Prelude LNG off Australia") £400 million in fines as a result of failing to adhere to the strict AML regulations4. Even in pre-pandemic times, AML procedures and [regulations would frequently change and update to ensure](https://www.financedigest.com/the-lego-blocks-of-saas-how-microservices-can-help-ensure-compliance-with-changing-financial-regulations.html "The Lego blocks of SaaS: how microservices can help ensure compliance with changing financial regulations") they were as robust as possible, which unfortunately makes way for human error. Over the past year, the use of electronic verification has accelerated, as has the [need for more rigorous online security](https://www.financedigest.com/what-banks-need-to-do-right-now-to-improve-their-digital-services-without-sacrificing-security.html "What Banks Need to Do Right Now to Improve Their Digital Services Without Sacrificing Security ") checks. Developing the right procedure before implementing it is key. By adopting a watertight, multi-layered identity check process, you will eliminate the chances of [fraud and ensure any](https://www.financedigest.com/how-to-ensure-your-new-business-doesnt-become-a-victim-of-covid-related-fraud.html "How to ensure your new business doesn’t become a victim of Covid-related fraud") suspicious activity is flagged. **Combine the right technology with robust training** Utilising this kind of system whilst ensuring all staff are kept up to speed on AML [law and policy will go a long way to preventing](https://www.financedigest.com/eu-seeks-deal-on-law-preventing-import-of-deforestation-linked-goods.html "EU seeks deal on law preventing import of deforestation-linked goods") any shortfalls in the process, which will ultimately safeguard against failings. At SmartSearch we have developed an [innovative TripleCheck system](https://www.financedigest.com/the-hemodynamic-monitoring-systems-market-to-clamber-on-the-shoulders-of-innovation.html "The Hemodynamic Monitoring Systems Market To Clamber On The Shoulders Of Innovation"), requiring all customers to complete a three stage ID check, including documentation checks, facial recognition and digital fraud and data referencing checks. This approach makes it easy [for businesses to identify and eliminate fraudulent activity](https://www.financedigest.com/euro-zone-business-activity-contracted-again-in-aug-outlook-bleak-2.html "Euro zone business activity contracted again in Aug, outlook bleak"), helping them to stay AML compliant at all times to avoid sanctions. [To support businesses which](https://www.financedigest.com/how-banks-will-evolve-to-support-small-business-owners.html "How banks will evolve to support small business owners") are thinking of strengthening their current AML framework with electronic identity verification, John shares the key steps to take: 1. Given how easy it is to create forged copies of hard documents, it’s vital to implement a framework that requires no more than a name, address and date of birth to carry out a full, global [search to verify the customer’s](https://www.financedigest.com/swiss-insurance-company-helvetia-uses-squirro-to-deliver-better-search-results-to-its-five-million-customers.html "Swiss insurance company Helvetia uses Squirro to deliver better search results to its five million customers") ID. 2. When looking at online solutions, a single platform with multiple database searches is [more streamlined and effective than having to check](https://www.financedigest.com/uk-plans-streamlined-post-brexit-border-checks.html "UK plans streamlined post-Brexit border checks") with multiple platforms, such as Equifax, Experian, then another separately. 3. Check [how the business stores customer](https://www.financedigest.com/future-proofing-your-small-business-its-time-to-listen-to-your-customers-needs.html "Future proofing your small business – it’s time to listen to your customer’s needs") details. Not all solutions automatically update the database when changes occur, such there [are updated PEP lists and so implementing a system](https://www.financedigest.com/a-fast-track-route-to-updating-legacy-system-code.html "A Fast-Track Route to Updating Legacy System Code") that is aligned to make these changes makes the process more fool proof. 4. You don’t necessarily [have to invest huge amounts in new IT infrastructure to submit and receive data](https://www.financedigest.com/investing-in-the-future-with-alternative-web-data.html "Investing in the future with alternative web data"). The quickest and simplest access for users is through the browser on your company laptops and desktops, which are safeguarded by [heightened security](https://www.financedigest.com/with-greater-freedom-comes-heightened-risk-how-to-help-ensure-consumer-data-remains-secure-in-an-open-banking-system.html "With Greater Freedom Comes Heightened Risk: How to Help Ensure Consumer Data Remains Secure in an Open Banking System") and protection. 5. It’s vital to check how easy it is for anybody in the company to use. The most advanced technology should be easily accessible for people who need to use it day-in day-out, and not the just IT [dept, to avoid any confusion or mistakes](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") when handling personal information. 6. Ensure the ID [verification system you implement includes FCA compliant data records](https://www.financedigest.com/red-box-recorders-launches-worlds-first-automated-audio-recording-compliance-verification-tool.html "RED BOX RECORDERS LAUNCHES WORLD’S FIRST  AUTOMATED AUDIO-RECORDING COMPLIANCE VERIFICATION TOOL") automatically. If [your business is required to provide an audit, having a system designed to incorporate detailed records which are fully compliant will save](https://www.financedigest.com/breaking-down-the-barriers-of-ar-automation-to-help-businesses-save-money.html "Breaking down the barriers of AR automation to help businesses save money ") you time. 7. Using [technology such as facial recognition will further enhance](https://www.financedigest.com/lulu-exchange-enhances-customer-experience-and-supports-expansion-with-move-to-fiserv-aml-technology.html "LuLu Exchange Enhances Customer Experience and Supports Expansion with Move to Fiserv AML Technology") the level of certainty when checking an ID. If [integrated with global database searches and document verification you can be sure you have a watertight system](https://www.financedigest.com/from-excel-based-systems-to-automated-consolidation-and-data-integration.html "From Excel-based systems to automated consolidation and data integration") that meets all regulations. For more information on SmartSearch’s TripleCheck system, visit: [https://www.smartsearch.com/triple-check](https://www.smartsearch.com/triple-check) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---