Welcome to Credas

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T R A N S F O R M A T I O N A L I D V T E C H N O L O G Y

Welcome to Credas

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Introduction

In this brochure, we’ll cover and outline:

1. A background to legislation

2. The challenge for businesses

3. Our technology

4. Why Credas?

5. Our team

Verifying someone’s identity is necessary to ensure you know your customer and to prevent anti-money laundering, identity fraud, or confirm an individual’s right to work status.

Staying on top of the legislation is essential in ensuring your business stays ahead of the game.

The internet has made physical borders a thing of the past, helping businesses evolve and become global entities while subjecting them to a variety of legislation; a myriad of processes with airtight compliance measures that are difficult to achieve.

Shaped by legislation, Credas’ objective has been to create a suite of compliance-based technology to relieve these very real burdens.

In this guide, we examine the history of legislation and the challenges this presents businesses, as well as introducing Credas technology and how it can help you and your business get ahead of the legislation.

No matter the market or sector, your business will undoubtedly face pressures to comply with legal regulations.

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Legislation

“Identity verification is a major component of some of our most

significant legislation in enterprise, including Anti-Money Laundering, Know

Your Customer, Right to Work and Modern Slavery.”

How your business manages and demonstrates compliance can result in severe punishments, fines, reputational impact, and even imprisonment – for directors, company executives and senior management.

In our most recent study*, 1 in 10 accountancy firms reported suffering a financial penalty for Anti-Money Laundering non-compliance – with the average fine coming in at just under £26,000.

Unfortunately, this legislative burden and the value of resources required to carry out the necessary compliance often outweighs the resource any business has available. Paired with the rapid advancements in technology

we are seeing in all areas of enterprise, from digital transformation to the Internet of Things, it’s not surprising that some companies are failing to keep up.

In response to digital transformation, regulatory bodies are asking businesses to carry out processes that would be near impossible without the use of technology, and those companies that haven’t yet adopted new ways of working are subsequently doomed to fail.

This is very much the case with identity verification, where businesses that still rely on manual processes to achieve compliance, run a risk of serious penalty as a result.

In recent years, regulatory bodies such as HMRC have been rapidly introducing new elements to legislation, many of which left unanswered questions due to their ambiguity. In turn, the legislators have been enforcing harsher penalties for those that do not comply.


Anti-Money Laundering

The report proved that while there is a robust regulatory framework in place to tackle money laundering, it’s still a major concern for governments and regulators.

The UK government’s Anti-Money Laundering regulations aim to protect businesses from being used for money laundering by criminals or terrorists and ensure sufficient controls are in place to minimise the risk.

What do businesses need to do to comply?The due diligence required for AML compliance includes a range of checks, from Identity Verification, Document Authentication, Electoral and Mortality Register to the more advanced Politically Exposed Persons (PEPs) or government Sanctions list searches.

Anti-Money Laundering checks aren't just

for onboarding new clients - companies are required to continually and proactively monitor the behaviour of their customers to detect any suspicious activity, and conducting these ongoing checks are just as important to the initial verifications carried out.

As part of the Anti-Money Laundering regulations, companies are legally obligated to appoint a Money Laundering Reporting Officer (MLRO). The MLRO should be a senior employee that consistently implements the company’s Anti-Money Laundering policies and procedures.

Earlier this year, the European Commission published a report** about money laundering and terrorist financing, identifying 47 products and services vulnerable to money laundering or terrorism financing in the internal market, up from 40 in its 2017 report.

*Source: The study was commissioned by Credas and conducted by OnePoll in February 2019 among 250 people working in the account-ancy sector. ** https://europa.eu/rapid/press-release_MEMO-19-4369_en.htm

The Fifth AML Directive includes:A brief timeline of AML legislation Introduced in June 2017, the 4th Anti-Money Laundering Directive fundamentally changed the way businesses handle money laundering.

After finding some room for interpretation in the 4th Directive, policymakers didn’t hang around. In April 2018, after only ten months – European Parliament announced that it

would adopt the 5th AML Directive, giving UK businesses just 18 months to transfer the directive into law.

The deadline is January 2020.

Under the new 5th Directive, restrictions will become much tighter with new elements introduced to deter financial crime.

Any ambiguity in the rules has been sewn up and so businesses can no longer plead ignorance when it comes to compliance.

• Regulations for virtual currencies, such as Crypto and Ether, and pre-paid cards, to prevent terrorist financing

• Improved safeguarding for financial transactions sent to and from high-risk countries

• Obligations to consult the beneficial ownership register when performing AML due diligence

• Requirements for all businesses to carry out regular AML audits in order to ensure full compliance


Know Your Customer (KYC) requirements dictate that companies must identify high-risk clients, before and throughout doing business with them so that they can be managed appropriately.

Effective Know Your Customer checks involve verifying a customer’s identity, their financial status, financial activities and the level risk they pose.

The verification process has gained popularity among businesses which handle money in some shape or form, including banking institutions, online challenger banks, insurance agencies, and credit companies.

KYC processes have also subsequently been followed by companies to prevent late payments, business failure, or even corporate fraud.

What do businesses need to do to comply?Going beyond the collection and analysis of basic personal identification, Know Your Customer is part of a business’ due diligence process that involves obtaining customer information, and helps verify that they are not

on any of the lists of individuals known for corruption, money laundering or crime.

To carry out Know Your Customer checks, businesses need to request documents which confirm a customer or client’s legal name, any name changes, correct permanent address – as well as proof of identity, proof of address and authenticity of any identity documentation.

In the case of verifying corporate clients, businesses may need to identify a range of company details including company registration number, registered offices, and the names of all directors (or equivalent), plus the names any individuals who has shares or control over 25% of the business - soon to be just 10% with the induction of the 5th Directive.

Know Your Customer


The Challenge

Time and time again, our clients tell us that their biggest barrier to legislative compliance is time, or the lack of, and a clear, simple process that can be repeated at scale.

A recent study estimated that the time taken to complete efficient identity checks took up over four business days per month, with the key issues being cited as getting hold of the correct identity documents and time constraints.

Most companies described the amount of time taken to complete an identity check as long and costly, and difficult because clients are often confused by the type of identity document they need to provide, or even worse, are reluctant to provide this information.

Combined with the added complexity when dealing with overseas customers and the ability to identify the correct point in time when verification checks are needed.In 2019, we polled 250 accountancy firms – who listed the key struggles in completing identity checks as part of their Anti-Money Laundering processes.

Q: What, if anything, is the main barrier to completing verification checks? (Please select best match).

Choice %Getting hold of beneficial owner’s identity documents

33.95% (55)

Finding records online to compare against ID documents

17.28% (28)

Geographical boundaries 15.43% (25)

Ultimate Beneficial Owner often hard to establish

5.56% (9)

N/A - There are no barriers to completing identity verification checks / I don’t know

27.16% (44)

Lengthy processes such as credit, disclosure and barring service (DBS) and ultimate beneficial ownership (UBO) checks are also high priority for several sectors, so it comes as no surprise that many are being squeezed for resources, highlighting compliance and security gaps.

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Our Technology

Credas’ enterprise solutions were borne out of business need.

As new security threats and therefore new regulations emerged, so too did the need for businesses to have robust solutions in place to protect their interests – as well as their customers.

Launched in 2017, Credas has developed as a suite of identity verification technologies that allow businesses to carry out simple, slick and smart due diligence, that help speed up safe, compliant customer onboarding and ease the burden of compliance.

During this time we have seen companies across all sectors struggle to keep up with the changing face of compliance and as a result Credas has developed new and adapted technologies to perfect a suite of solutions that are truly shaped by legislation.

Furthermore, our specialism in solving complex business problems, through the design, delivery and management of innovative technology solutions, enable businesses to truly transform its digital, due diligence and compliance processes.


Biometric Facial RecognitionThe backbone of Credas and where it all began. We use biometric facial recognition technology to verify a person’s identity anytime, anywhere – using a selfie as a reference point, and a unique action protocol to ensure the customer is real and present at the point of verification.

Data Security and GDPR ComplianceStored in the EU Microsoft Azure Cloud – a globally recognised, secure and trusted platform – Credas ensures GDPR compliance, providing a clear audit trail of your data.

Data VerificationLeverage real-time global data sets across multiple attributes to get a clearer picture of your customers and apply these for verification of compliance.

Agile Software Development and App White LabellingThrough agile software development we work iteratively with businesses to create identity verification solutions that enhance their company and compliance processes.

Our applications are easily white labelled and can be used from everything as simple as document authentication, through to biometric facial recognition entry systems.

Document Authentication By working with a wide range of leading commercial data suppliers, Credas offers comprehensive checks on individuals, companies, and verifies over 4,000 types of identity documents.

API Integration and Sandbox Development Credas offers full API integration into existing systems and solutions. Development teams can use our API to swiftly integrate any of our technologies into your business’ existing customer relationship and content management systems.

Radio-frequency Identification (RFID) Chip Reading Credas’ identity verification offers 100% accuracy for anyone verifying using the RFID chip used in government issued passports.

Annual Compliance and Technology AuditsCredas’ identity verification offers 100% accuracy for anyone verifying using the RFID chip used in government issued passports.

Connected Services

Your Logo

API

Construction

Accountancy

Cryptocurrency

Recruitment

Property

Law

Insurance

Financial Services

& FinTech


Credas has a proven track record in helping businesses fundamentally transform and revolutionise the way they manage their compliance and due diligence through technology, design, and implementation across multiple sectors including:

Why Credas?

World Class Support Once you’re all set up with one or more of our solutions, our account management team will provide ongoing support to ensure that the technology is bringing maximum benefit to your business. Not only that, but our technical support team maintain and review our systems 24 hours a day, every day of the year.

Awards Credas have extensive experience and have won numerous awards for excellence in technology and growth.

Accredited by HMRC – for Regulatory Excellence – the UK Government’s Office for Product Safety recognised that Credas’ product and technology had achieved positive outcomes through good practice, for the UK public and businesses.

CoverageCredas is at the forefront of identity verification technology and as such have provided expert opinion for several national titles, including BBC News, The Telegraph and The Times.

We have also provided insight for a series of industry publications including Lawyer Monthly, Property Industry Eye and Professional Accountancy.

In 2019, Credas CEO Rhys David was invited by Sky News to appear on Gillian Joseph's Sunrise show to discuss the applications of facial recognition tech. The show boasts over 9million viewers and has been a Sky News staple since its launch in 1989.


Rhys DavidChief Executive OfficerAs Chief Executive Officer of Credas, Rhys is a leading figure in UK Fintech.

Rhys has held c–suite roles at multi-national businesses that include GoCompare (Chief Technology Officer, Board Member), Central Government (Programme Director) and BP (Lead Solutions Architect).

Rhys has a simple philosophy that underpins every aspect of his professional career: people, process, technology and data are all critical components of omnichannel customer experience and engagement, and is it these four elements that drive revenue and consistent business growth.

Kevin SmithChief Technology OfficerKevin is responsible for shaping and delivering innovation in identity verification, documentation and NFC technologies, while providing excellent service to clients, as they continue to accelerate into new markets and sectors.

He has proven experience in leading product and technology teams, ensuring performance, security and scalability considerations remain front and centre of their offering.

Kevin is an accomplished technology lead with over two decades of experience in corporate product and entrepreneurial environments, including The Indigo Group, GoCompare, Sonovate, play.com, and NPower.

The Credas Team

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