The use of digital ID in Africa is gaining momentum in the fight against financial crime, fraud and money laundering. Following the launch of Qual-ID, find out how financial institutions can improve customer onboarding and meet KYC and AML rules.
- The number of fraud cases where real identity documents and names were used for impersonation in South Africa jumped 99 percent in 2019.
- The use of digital ID in Africa not only helps the fight against financial crime and fraud, it can improve financial inclusion and boost e-commerce.
- Qual-ID is an efficient and accurate way to digitally onboard consumers through a combination of Refinitiv’s World-Check Risk Intelligence and Trulioo’s digital identity network.
As part of fraud prevention and fighting financial crime, African countries are rigorously working towards providing digital identity to their citizens.
Governments have committed to a whole new approach to the digital economy by harnessing the benefits of digital ID in order to aid e-commerce, financial inclusion and greater access to financial services.
They realize that the use of digital ID in Africa will help them fight financial crime, tackle fraud and money laundering by giving central banks and regulators have greater access to a transparent, real-time and centralized system for transactions.
The need for action is highlighted by the Southern African Fraud Prevention Service’s recent statistics on identity fraud, with the number of cases of fraudsters using real identity documents and names for impersonation up by 99 percent in 2019.
Existing digital ID use cases in Africa
South Arica’s Department of Home Affairs’ National Population Register is now using digital ID to verify the status of citizens and residents.
Using South Africa as a case study, Zambia has now also successfully captured the population’s biometrics to match Know Your Customer requirements.
This is an important step for these southern African countries. Statistics from the Southern African Fraud Prevention Service’s (SAFPS) revealed that fraudsters using real identity documents and names for impersonations increased by 99 percent in 2019 in relation to 2018.
In East Africa, Tanzania’s National Bank of Commerce is pioneering the use of digital ID for customers to open an account within minutes. Leading the pack, however, is Kenya’s Huduma Namba mass registration exercise.
Watch: Refinitiv Qual-ID, powered by World-Check — our new digital identity solution
The system has successfully registered close to 40 million Kenyans and foreign nationals residing in Kenya, helping the country adopt a trusted national source of digital ID in the fight financial crime.
As a result, a new commercial opportunity for mobile money is emerging in the country, set to augment M-PESA and other mobile payment systems within Kenya’s innovative financial services sector.
Digital ID is also making it possible for cryptocurrencies such as blockchain and other types of distributed ledger technology to thrive in countries like South Africa, Ghana, Kenya, Botswana, and Nigeria.
Qual-ID as a digital ID solution for Africa
Helping countries in Africa and globally to fight identity fraud and financial crime is Refinitiv’s Qual-ID. This is a new solution that combines digital ID verification with risk screening to help improve the digital onboarding of consumers and compliance with KYC and AML regulations.
Qual-ID, which is a partnership between Refinitiv and Trulioo, is designed to improve the consumer experience while helping to protect against fraud and money laundering.
Qual-ID enables companies in emerging markets and sectors to confidently tap into this potential by supporting an efficient and accurate way to digitally onboard consumers through a combination of Refinitiv’s World-Check Risk Intelligence and Trulioo’s digital identity network.
Combined digital identity verification and risk screening with Refinitiv Qual-ID
First National Bank in South Africa is already onboarding customers using digital ID. The bank has made it possible for customers to open an account with just a selfie by pairing up with the South African Department of Home Affairs’ digital ID verification process.
Qual-ID enables organizations to verify identities against trusted data sources, proof legal documents, conduct anti-impersonation checks, and screen for regulatory and financial risk such as sanctions, PEPs and adverse media.
The system is incredibly easy to use as the process, comprising a three-step approach, can be completed in one transaction and via a single point of access.