😭IDSP, IDVT, KYC, KYB and AML
If you've ever been involved in hiring people or starting a new business relationship, then you'll be familiar with this array of acronyms. We'll touch on each and how Zipwire Collect can help.
IDSP - Identity Service Provider (UK)
An IDSP is any business who provides ID checking services. In 2022, the UK government mandated that when employing someone, digital ID checks should be performed by an authorised Identity Service Provider and has published this list of providers.
Here's the relevant passage from the gov.uk guidelines:
IDSPs can carry out digital identity verification to a range of standards or levels of confidence. The Home Office recommends that employers only accept checks via an IDSP that satisfy a minimum of a Medium Level of Confidence. A list of certified providers is available for you to choose from on GOV.UK: Digital identity certification for right to work, right to rent and criminal record checks. It is not mandatory for you to use a certified provider: you may use a provider not featured within this list if you are satisfied that they are able to provide the required checks.
Although it is not mandatory, many employers will want the reassurance of using an authorised IDSP which is why Zipwire Collect is integrated with Yoti, the first IDSP to be authorised in the UK.
That brings us nicely onto our next acronym.
IDVT - Identity Document Verification Technology
This simply means technology that can check a document is legit. You've probably used this sort of thing in an airport recently, but the technology also works on mobile phones.
Yoti uses National Institute of Standards and Technology (NIST) certified "selfie" technology and machine learning models to verify photos of ID documents.
You use your mobile phone to take a selfie and snap a photo of your ID doc, and this kind of IDVT is why some banks no longer require people to come into a branch to open an account - indeed banks like Monzo are mobile app only.
KYC - Know Your Customer
This is a fairly well-known acronym in business, especially in finance. It embodies the best practices and law around conducting due diligence on who you are doing business with.
Zipwire Collect helps with collecting information from people, in addition to performing ID checks, and comes in useful whenever there's a need to collect, check and keep on record evidence of these checks as well as demonstrate having a system in place.
KYB standards for Know Your Business and is focused on checking a corporate entity.
AML - Anti Money Laundering
Organised crime generates a lot of money which must be disguised as having come from legitimate commercial endeavour.
KYC is a crucial first step in reducing money laundering and key to both preventing money laundering in the first place and keeping a paper-trail of illicit activity for subsequent investigation.
As part of tackling crime and avoiding the tough penalties of handling the proceeds of crime, institutions around the world operate information sharing networks.
Through its use of Yoti, Zipwire can conduct AML background checks on individuals, looking at sanctions lists, Politically Exposed Persons (PEPs) and adverse media.
We're also interested to see whether ongoing checks would be useful for customers, i.e. alerts, and whether deep AML probes are needed. Please get in touch.
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