How Good ID Verification Supports Remittance
As a form of payment, remittance usually refers to money being sent back home by someone who has moved abroad to find work, though it can also refer to businesses sending money to remote suppliers, partners or workers. In this, it both supports people who otherwise would struggle to make ends meet, and helps businesses access a wide and varied pool of talent, resources and specialties.
With estimates for 2019 remittance totals reaching as much as US$715 billion, the amount of money being transferred back to friends or family plays a significant role in the lives of hundreds of millions of people. As increasing numbers of people are moving and working abroad and sending money home, the amount of value transferred in remittance was expected to continue to rise this year; however, unsurprisingly, with the global issues caused by the Coronavirus pandemic, these payment channels have suffered and will likely take time to recover. Unfortunately, the people most affected by this will be some of the ones least able to afford it. Different methods can be used to transfer money across borders, including cash, cheque, electronic transfer, mobile payments and, more recently, cryptocurrencies. Each one has its benefits and drawbacks in terms of speed, cost and security. However, as remittance involves sending payments abroad, methods used also need to adhere to KYC and AML regulations, and potentially other regulations that come into play, particularly around data protection. This can present a specific issue when different jurisdictions are involved as many countries around the world can have not only different regulatory requirements, but also different identity documentation standards, languages and digital capabilities. Complying with the relevant regulatory requirements are necessary to avoid misuse of remittance channels by criminals to commit fraud, fund terrorism and similar illicit activities, but in doing so it can make it more costly and difficult to send such payments overseas. The right kind of identity verification and efficient KYC and AML checks can ensure that the vital services being provided that so many rely on can take place as quickly, seamlessly and at as little cost, as possible.At Blockpass, our goal is to provide the most user-friendly, cost-effective and flexible identity management solution that can be used with a wide range of merchants and service providers, enabling a plethora of options and opportunities for users. Remittance is an excellent use-case for a Blockpass Identity and enables compliance with KYC and AML regulations around the world within seconds. As it provides reusable and low-cost verification, Blockpass’ KYC connect solution can be used with a number of remittance providers and can be applied to new ones that may be created that take advantage of new technology developments. From traditional avenues to cryptocurrencies, it is possible for anyone to partner with Blockpass for regulatory compliance. In providing a mobile solution, Blockpass can also access a great majority of the world's population as higher and higher proportions of people gain access to smart and mobile phones. The Blockpass platform is fully automated and hosted in the cloud, with no integration or setup fee. Businesses can sign up to the KYC Connect® console in a matter of minutes, test out the service, and start conducting identity documents verification, KYC and AML checks. Sign up for FREE at console.blockpass.org.