Around three in 10 (28%) of regulated businesses are unaware of digital AML solutions such as electronic verification, according to new research from SmartSearch.

The anti-money laundering (AML) expert described the findings as “surprising”, given the current customer demand for digital systems.

SmartSearch’s study of 500 regulated firms in the UK found that a third (37%) claimed they had not considered switching to an electronic platform to complete the mandatory anti-money laundering checks. Combined with a lack of awareness, just a quarter (23%) of firms claimed they were “highly confident” they could spot a fake document.

This comes as the AML firm also found that around half (48%) of respondents had reported a rise in financial crime attempts in the past 12 months.

“With the increase in fraudulent attempts, and the complexity of these fakes, using the best available technology to prevent money laundering is critical,” commented SmartSearch managing director, Martin Cheek.

“Criminals will exploit any weakness in the chain, so we ideally need all regulated businesses embracing the most effective and efficient methods.

“Electronic verification works by using credit reference data, combined with other reliable sources, creating a unique ‘composite digital identity’ which is virtually impossible to fake. The best systems can complete a check in just two seconds.

“The FCA has endorsed the use of electronic verification, and those looking to make the switch should not hesitate.”

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