Acuant, Scalable Solutions Partner On AML, KYC Security For Exchanges

Identity verification provider Acuant has partnered with blockchain software firm Scalable Solutions to create a platform that provides anti-money laundering (AML) and know your customer (KYC) solutions to financial institutions (FIs) and exchanges, according to a press release.

Scalable Solutions provides its technology to digital asset exchanges and tokenization services, where security is both “a significant area of value, and a pain point,” the release stated.

“We know how difficult it can be for financial institutions to ensure that all systems are in place to comply with regulations and prevent fraud, especially in our ever-changing regulatory environment,” said Scalable Solutions Founder Mark Berger in the release. “Our partnership with Acuant helps financial institutions and exchanges to seamlessly integrate AML/KYC compliance, digital identity verification and benefit from secure automation.”

The development and implementation of digital assets can be stymied when FIs face challenges meeting regulations, the release noted, and so Scalable Solutions chose to partner with Acuant to address FIs’ concerns over adopting these new technologies.

Real-time security and identity verification have become all the more important as the digital-first mentality is no longer an option, but a necessity. Fraudsters will continue to evolve with the technology, Jose Caldera, chief product officer of Acuant, told PYMNTS in January.

Scalable Solutions will use Acuant’s Trusted Identity Platform to measure risk, manage fraud, verify identities, monitor transactions and ensure regulatory compliance, according to the release.

“It is imperative that solutions are built with an understanding of the concerns and challenges that banks, exchanges and other businesses face,” said Acuant President and CEO Yossi Zekri in the release.

The platform, which uses artificial intelligence (AI) and machine learning (ML), will increase the efficiency of fraud and compliance teams and improve the ability to apply proper security controls in real time when suspicious users are detected — something that can also accelerate the exchange’s speed for verified users, the release stated.

The release also noted that IdentityMind’s AML expertise will enhance the platform. Acuant acquired IdentityMind last year, according to a separate press release.