Further Reading
Chapter 6: KYC Fundamentals: Identity Verification at Scale
Essential Reading
FATF (2023). Guidance on the Risk-Based Approach for the Banking Sector. FATF's authoritative guidance on how the risk-based approach applies to banking CDD. Free at fatf-gafi.org. Essential for understanding the regulatory framework that KYC technology must satisfy.
FinCEN (2018). Customer Due Diligence Requirements for Financial Institutions: Final Rule. The US regulatory text implementing the CDD rule, including beneficial ownership requirements. Free at federalregister.gov. Essential primary source for US KYC obligations.
FATF (2020). Guidance on Digital Identity. FATF's framework for how digital identity verification methods can satisfy KYC obligations — essential for evaluating whether a specific technology approach is regulatorily acceptable. Free at fatf-gafi.org.
For Practitioners
Jumio (annual). State of Online Identity Fraud. Annual industry report. Provides data on identity fraud typologies and the effectiveness of different verification methods. Take with awareness that the vendor has commercial interest in presenting identity fraud as a large problem.
Onfido (annual). Identity Fraud Report. Annual industry report. Similar to the Jumio report; reading both gives a more balanced view.
LexisNexis Risk Solutions. True Cost of AML Compliance. Annual survey. Provides benchmarks on compliance costs including KYC-specific spending.
UK Finance (2023). Digital Identity in Financial Services. The UK banking trade association's analysis of digital identity verification, including regulatory considerations. Free at ukfinance.org.uk.
For the Curious
World Bank (2021). The Global Findex Database. Comprehensive data on financial inclusion globally — essential for understanding why approximately 1.4 billion adults globally remain unbanked and the relationship between KYC requirements and financial exclusion. Available at worldbank.org.
Goldsmith-Pinkham, P. & Bartlett, R. (2022). Consumer-Lending Discrimination in the FinTech Era. NBER Working Paper. Research on whether algorithmic credit and identity verification systems replicate or amplify existing demographic disparities. Directly relevant to the algorithmic fairness question in KYC automation.
Nair, P. (fictional reference — attribution to chapter's Priya character). This textbook refers to Priya's client work; for real-world equivalent academic research, see: CGAP (Consultative Group to Assist the Poor) working papers on digital financial services and KYC in emerging markets at cgap.org.
GSMA (2023). Digital Identity for Mobile Money. The mobile industry association's analysis of how mobile-based digital identity can extend KYC access to underserved populations. Relevant to the emerging markets challenge explored in Case Study 6.2.
Regulatory Primary Sources
| Document | Jurisdiction | Key Relevance |
|---|---|---|
| FinCEN CDD Rule (31 CFR 1010.230) | US | Beneficial ownership, CDD standards |
| BSA CIP Rule (31 CFR 1020.220) | US | CIP minimum requirements |
| Money Laundering Regulations 2017 | UK | UK KYC requirements |
| AMLD5/AMLD6 | EU | EU CDD requirements |
| FATF Recommendation 10 | International | CDD standards and RBA framework |
| PSD2 (Directive 2015/2366) | EU | Strong Customer Authentication (relevant to biometrics) |
Technology References
| Vendor/Product | Category | Reference |
|---|---|---|
| Onfido | Document verification + biometrics | onfido.com |
| Jumio | Document verification + biometrics | jumio.com |
| GBG Group | eIDV, particularly UK/AU markets | gbgplc.com |
| LexisNexis Risk Solutions | eIDV, adverse media, sanctions | lexisnexis.com |
| Kount (now Equifax) | Device intelligence + identity | kount.com |
| Trulioo | Global eIDV (150+ countries) | trulioo.com |
Note: Vendor listings are for reference only, not endorsements.
Professional Standards
ACAMS (Association of Certified Anti-Money Laundering Specialists) — The primary professional body for AML practitioners. The CAMS certification covers KYC extensively. acams.org.
ICA (International Compliance Association) — UK-based compliance professional body with AML/KYC certification programs. int-comp.org.
FATF Virtual Assets Contact Group publications — Guidance on KYC for crypto asset service providers (CASPs) — relevant as crypto regulation expands.