Background on Key Players
Prometeo, a fintech company specializing in banking infrastructure, and Jumio, a technology firm focusing on digital authentication, have announced a partnership to bolster processes related to the Prevention of Money Laundering (PLD) amidst stricter regulations and increased identity verification requirements.
Objective of the Collaboration
The primary goal of this alliance is to streamline crucial steps such as digital onboarding and payment reconciliation. By integrating identity verification and bank account validation, the companies aim to expedite operational processes and prevent fraud.
“This partnership enables us to offer a more robust bank validation process, which is essential in any authentication procedure. It’s no longer just about confirming if an account exists, but also verifying who is behind it,” stated Roberto Gaudelli, Prometeo’s commercial director.
Integration of Technologies
The integration combines Prometeo’s application programming interface (API) infrastructure, which facilitates secure data exchange between various financial systems, with Jumio’s biometric verification technology supported by artificial intelligence.
- Prometeo’s APIs enable secure communication and data exchange between different financial systems.
- Jumio’s biometric verification technology, backed by AI, ensures accurate identity confirmation.
This collaboration will connect over 1,200 financial institutions across 11 countries, including Mexico.
Challenges in Digital Onboarding
The partnership addresses growing challenges in digital onboarding, such as ensuring account ownership by the applicant and adhering to stricter compliance and financial crime prevention standards, including money laundering and terrorism financing.
- Implementing automated systems for continuous transaction monitoring
- Detecting unusual transactions
- Periodically assessing risks based on a risk-focused approach
These obligations align with the recent Anti-Money Laundering (AML) law reform, which modifies both the Federal Law for the Prevention and Identification of Operations with Illicitly-Obtained Resources and the Federal Criminal Code.
The reform aims to encourage financial institutions to adopt automated mechanisms for ongoing client transaction monitoring based on their transaction profiles.
Key Questions and Answers
- What is the main focus of the partnership between Prometeo and Jumio? The collaboration aims to strengthen processes related to the Prevention of Money Laundering (PLD) by integrating identity verification and bank account validation.
- How will this partnership benefit financial institutions? By connecting over 1,200 financial institutions across 11 countries using secure APIs and AI-backed biometric verification, the partnership will streamline operational processes, prevent fraud, and ensure compliance with stricter regulations.
- What challenges does digital onboarding face? Digital onboarding faces challenges such as verifying account ownership, adhering to stricter compliance standards, and implementing automated systems for continuous transaction monitoring.
- How does the recent AML law reform impact financial institutions? The reform encourages financial institutions to adopt automated mechanisms for ongoing client transaction monitoring based on their transaction profiles.
