AML Meets Safer Gambling: Where Does Accountability Really Lie?

As the healthcare industry shifts online, identity verification (ID&V) has become a foundational component of secure digital health services. At its core, identity verification is the process of ensuring a person is who they claim to be which is essential in healthcare, where providers handle sensitive medical data, prescriptions, and personal information.

As digital practices have emerged where patients can sign up, consult, and receive prescriptions entirely online, verifying identities securely, quickly, and seamlessly is critical to ensuring trust and safety.

The Role of Digital IDV in Online Healthcare Journeys

For digital-first healthcare providers like online pharmacies, telemedicine platforms, mental health apps, and wellness services, identity verification is no longer just a compliance checkbox. It’s a key step in delivering a seamless, trustworthy end-to-end customer journey.

Whether it’s:

• Registering a new patients
• Prescribing medication
• Accessing medical records
• Booking virtual consultations
• Managing repeat prescriptions

Every interaction depends on secure, frictionless IDV that protects patient data without introducing drop-off points.

Why Digital Healthcare Must Prioritise IDV

1. Protecting Sensitive Information

Healthcare platforms handle highly sensitive data, from biometric records and diagnosis history to payment details. Without proper identity verification, this data is vulnerable to misuse and fraud.

2. Preventing Prescription Fraud

Online pharmacies are particularly vulnerable to misuse, including false prescriptions and identity spoofing. Robust IDV ensures that only legitimate users can access repeat prescriptions and controlled substances.

3. Meeting Regulatory Requirements

UK healthcare companies must comply with strict regulations like GDPR, NHS DSPT, and GPhC standards. Digital IDV platforms help ensure compliance is baked into every transaction.

4. Improving User Experience

A user-friendly identity verification process reduces onboarding friction and ensures patients can access care quickly. In digital health, ease of access is everything, especially for repeat services.

‍How Digital Identity Verification Works in Healthcare

Modern identity verification blends security with convenience. Here’s how the process typically works in digital health settings:

1. Account Creation

• User submits personal information via app or web
• Uploads identity documents (passport, driver's licence, etc.)

2. Real-Time Documents Checks

• ID is verified against global databases
• Facial recognition may compare a selfie to the document

3. Ongoing Authentication

• Multi-factor authentication (MFA) used for future logins
• Repeat identity checks for sensitive services (e.g. prescriptions)

4. Integrated Access

• Once verified, users gain seamless access to medical records, consultations, and pharmacy services

FullCircl’s digital ID verification platform supports this journey end-to-end, using biometric data, document checks, and ongoing authentication, all designed with healthcare-specific compliance and UX in mind.

Types of Healthcare Identity Verification Methods

Document Verification

Checks passports, driver's licences, and NHS cards against secure databases.

Use cases:

• First-time user registration
• Prescription account creation
• Controlled drug access

Biometric Verification

Uses facial recognition, fingerprint scanning, or voice ID to verify users

Use cases:

• Prescription refill access
• Repeat logins
• Sensitive data requests

Multi-Factor Authentication (MFA)

Requires a combination of factors (e.g., password + phone code).

Use cases:

• Platform logins
• Changes to personal data
• Verifying new devices

Behavioural & Emerging Methods

Monitors usage patters or passive biometric signals to verify users continously.

Use cases:

• Continuous fraud detection
• Background identity checks
• Future-proofing digital services

Benefits of Digital IDV in Healthcare

Let's break down the key advantages of identity verification in digital healthcare platforms:

Fraud Prevention

Blocks impersonators from accessing prescriptions or records.

Data protection

Safeguards sensitive health data in compliance with GPDR.

Faster onboarding

Reduces time from sign-up to service access.

Improved user experience

Seamless IDV keeps patients engaged, reducing drop-offs.

Regulatory compliance

Meets NHS DSPT, GphC, and GDPR standards.

Automated processes

Removes manual checks, reducing admin workload.

FullCircl helps digital healthcare companies deliver all of the above through scalable, customisable IDV solutions built for regulated sectors.

The Risk of Poor IDV in Online Healthcare

Without effective IDV, digital healthcare providers face:

• Increased fraud and account takeovers
• Prescription misuse
• Regulatory fines and investigations
• User frustration and platform abandonment

UK stat spotlight:

Over £1billion is estimated to be lost to the NHS from fraud, and with new fraud tactics becoming more complex, digital providers are a growing target.

Best practices for Implementing Digital IDV in Healthcare

1. Map the Customer Journey

Identify where identity verification is most critical (e.g., onboarding, prescription refill).

2. Choose the Right Tools

Opt for an identity platform that balances security with speed. FullCircl integrates with your workflows to deliver both.

3. Prioritise User Experience

Avoid clunky uploads or lengthy forms. Mobile-first verification is key.

4. Stay Compliant

Ensure all IDV steps align with NHS DSPT, GDPR, and healthcare-specific standards.

5. Measure and Optimise

Track onboarding drop-off rates and verification success rates to fine-tine the process.

FAQs

Why is identity verification important in healthcare?

It protects patient data, ensures secure access to digital health services, and helps prevent fraud in prescription and record management.

How does patient identity fraud impact healthcare providers?

It leads to misuse of services, regulatory issues, reputational damage, and lost revenue.

What is digital identity used for in health services?

It verifies users during onboarding, repeat logins, prescription access, and medical record requests.

How can identity verification improve patient onboarding?

It streamlines the process, speeds up service access, and reduces friction that might otherwise cause users to drop off.

How does FullCircl support digital healthcare companies with IDV?

FullCircl offers a fully compliant, user-friendly identity verification solution built for regulated digital healthcare services. It integrates seamlessly with existing platforms to verify identities in real time using document checks, biometrics, and a single source of truth for real-time identity verification.

What does the perfect underwriting submission look like?

How can brokers get their risks to the top of an underwriter’s inbox?

What information will help secure the best terms and most competitive premiums?

How can brokers improve relationships with underwriters, to drive even better outcomes for clients in the future?

We recently put these questions to a panel of industry experts:

• Jason Chambers, Director of Innovation at Aviva
• David Jones, Director of Underwriting at QBE
• Andrew Whitley, Head of Data and Insight at Broker Insights

Here’s what we learned.

Five top tips to make submissions stand out and help brokers get better results, faster

1. Accuracy, accuracy, accuracy

I cannot stress enough just how vital this is for both brokers and underwriters.

95% of underwriters identify the quality and accuracy of data in underwriting submissions as a key issue.

Small mistakes can have huge consequences in terms of securing the best terms for clients. Something as simple as getting the location of the client wrong, or presenting out of date firmographic data, can mean exposures are incorrectly evaluated, sums insured inaccurately, and the client not getting the outcomes they deserve.  

45% of wages, turnover, and asset data held by brokers has not been updated for three years or more. This is a real problem. But one that can be overcome easily.

Brokers with access to up to date, validated client intelligence – address verification, key financial information, accurate business descriptions, details of directors and shareholders, legal information, corporate family tree, shareholdings, and so on, can deliver consistently accurate and sharper submissions. Thereby giving underwriters what they need to assess risks quickly.

2. Business descriptions must fully reflect risk profile

Clients are operating in uncertain, yet dynamic, environments. Companies are constantly pivoting and diversifying their activities in response to a wide range of challenges and opportunities, such as embracing new technologies, alternative sources of energy, tough trade landscapes, and supply chain disruption.

SIC codes are no longer enough. Brokers need to scratch a little deeper and present more detailed business descriptions - not simply a snapshot in time, but rather a real-time, whole client view. For example, Real-Time Industrial Classifications (RTICs) can provide a deeper understanding of business activities.

Underwriters need brokers to deliver rich, contextualised company information and business descriptions that are comprehensive, up-to-date, and reliable to assess risks more accurately and return policies that are responsive to individual needs and outcomes.

3. There’s no such thing as too much information

It is certainly not a case of “less is more” when it comes to preparing the perfect submission.  

Underwriters say stand-out presentations are ones that are a pleasure to read, and they’ll never criticise a broker for including too much information. Underwriters want submissions that are comprehensive in terms of breadth of data, quality of data, and presentation of data.

This helps ensure underwriters match clients with products that are fully representative of the risks they face, especially if clients operate in multiple sectors or have complex activities. Brokers that build depth, richness, and intimacy into the client insight they provide will access the right products at the right time, with the best terms and most competitive premiums.  

To give one quick example – ESG data is becoming an increasingly valuable measure of client risk. Utilising ESG data within submissions can enhance risk assessments, improve loss ratios, product and wording innovation, and reduce carrier exposures.

4. Reducing errors and omissions drives improved efficiency for both broker and underwriter

This is a quick but impactful win. Eliminating double keying and human error helps everyone. After all - brokers and underwriters are both time poor.

Brokers need to reduce errors and omissions with validated and verified company data, to achieve the 100% submission accuracy underwriters desire.  

Technology that pre-populates submissions can save hours of re-keying, by automating customer data collection from validated and verified sources like mainstream CRA’s, Companies House and HMRC.

5. Don’t underestimate the ROI of investment in technology when it comes elevating submissions

Not going to lie, this was music to my ears.

The ultimate goal for underwriters is to write the right risks and deliver better outcomes for brokers and their clients, as well as for carrier partners.

Data is vital, but so too is the ability to turn this data into commercially valuable intelligence.

Integrating a real-time single view of client risk visibility, data-driven workflows, and predictive analytics into the submission process not only strips out cost, friction, and risk of data inconsistency. It also helps underwriters triage presentations faster and respond in a more agile way to customers that meet their appetite.

For both brokers and underwriters alike, technology and data are also vital to personalisation, customer lifecycle management (ensuring both are constantly alert to changes in exposure), and ensuring the market adapts faster to emerging risks.  

Ready to elevate your underwriting game?

Schedule a demo of FullCircl SmartBroker to learn why 150+ national and regional insurance businesses trust us for more effective data-driven decisioning.

Artificial Intelligence (AI), Machine Learning (ML) and robotic process automation (RPA) are shaping the future of the lending industry, enabling lenders, both traditional and alternative, and other financial institutions to improve efficiency and reduce costs. But AI can do much more than automate processes and boost efficiency.

AI can optimise and personalise customer lifecycle experiences and manage risks more effectively. Most importantly, it can reimagine even the most complex workflows.  Examples could include evaluating a commercial customer’s loan application, including processing a mix of structured and unstructured data, to make faster lending decisions and deliver tailored products and solutions based on a clear visualisation of preferences, behaviours, financial health, and creditworthiness.  Likewise, it can pinpoint loans which might default and enable the lending provider to proactively intervene and support the client, whilst protecting their risk tolerance.

Generally speaking, the more complex the workflow, the more value AI can generate - especially in corporate and commercial lending where the level of complexity allows for powerful results.

The commercial lending environment, and why it’s ripe for AI workflow transformation

The EY ITEM Club predicts UK bank-to-business lending growth will increase to 4.5% in 2025 – the highest rate since 2020 – and to 5.6% in 2026.  

But the lending environment remains tough thanks to significant economic fluctuations, the pace of regulatory change, and of course customer expectations.  Competition is also greater than ever. The rise of alternative lenders means there are now more lenders active in the market. Lenders must refine their strategies if they are to grab their share of the total addressable market.

However, many commercial lenders do not have the right technology in place. They are often burdened with out-dated highly manual processes, fraught with errors, and hampered by data silos with incomplete visibility into customer credit risk exposure, affordability, and liquidity. This presents a real challenge to commercial lenders at every stage of the lending lifecycle – acquire, onboard, originate, monitor, retain, and grow.  

The integration of AI powered data-driven insights into lending workflows can transform how decisions are made, enabling lenders to spot opportunities faster, onboard customers quicker, refine application processes, and enhance customer lifecycle experiences to increase lending without taking on additional risk.

Eight examples of AI workflow optimisation in commercial lending

1. When it comes to acquisition, AI can assist in digital-led marketing activities as well as augmenting front-line sales-enablement.  It can also spot hidden opportunities such as potential new revenues from rejected applications, or accepted applications that have not been taken up.
2. Orchestrating workflows, automating customer validation activities, executing KYC, KYB, and AML screening, and verifying client identity all in one place helps lenders perfectly balance the customer onboarding experience and regulatory compliance, to reduce attrition, bring down cost and time to onboard, eliminate the risk of errors, and meet demanding expectations.
3. In the loan origination process, AI can automate screening and validation processes such as document verification, and third-party validation through a range of financial data sources, as well as checking for errors, incomplete data, and automating application decision making against pre-defined lending rules.
4. Credit scoring and financial analysis requires lenders to analyse vast amounts of data – AI makes this process faster and more accurate.  Decision making against real-time analysis of creditworthiness, total risk exposure (because of multi-banking), and affordability.  McKinsey estimates this could deliver productivity gains of 20% to 60%, and up to 30% faster decision making.
5. Fraud detection – automation of Know Your Customer (KYC), Know Your Business (KYB), Anti-Money Laundering (AML) - and Identity Verification (IDV) can help spot potentially fraudulent activities faster.  Likewise, risk assessments from unstructured data sources, such as adverse media screening can help protect a lender’s risk position and protect them from both regulatory scrutiny and reputational damage.
6. An area AI has huge potential to add value is in risk monitoring. With AI powered workflow orchestration, lenders can predict risks and vulnerabilities and mitigate them proactively. Specifically, AI can spot patterns and risk factors and alert lenders to early warning signs – e.g. pinpointing a loan which might go bad – so that lenders can process and mitigate risk and better support customers.
7. When it comes to growth and retention, AI can augment relationship management teams with real-time customer insights to assist with continuous value-driven engagement and cross-selling/upselling activities.
8. AI workflow optimisation can also help lenders better support underserved segments of the market, thereby driving a fairer lending system. For example, with advanced data orchestration lenders can become more inclusive in their support of SMEs and cut cost to serve making the delivery of smaller loans more financially viable.

How can FullCircl assist lenders reimagine lending workflows?

FullCircl has a range of tools to assist lenders:

• ProBanker ensures multi banking is no longer an issue, lenders can gain a full picture of their customer’s liquidity, debt exposure, and cash positions, accounts across different banks to deliver total visibility when assessing a customer’s financial health and deep understanding of borrowing behaviour for more informed decision making at every stage of the lending lifecycle.
• SmartOnboard provides lenders with an end-to-end onboarding platform that incorporates robust automated KYB and KYC procedures, ensuring comprehensive and fast commercial onboarding and effortless compliance.
• SmartBanker assists lenders in accurately determining if a business fits its lending criteria and risk appetite via advanced data workflow orchestration including financial standing, credit history and industry risks.
• SmartAcquire delivers actionable insights to assist lenders in Identifying and securing new opportunities for growth - broadening their customer base, exploring innovative avenues for acquisition, and proactively responding to shifting market dynamics.

Check out our new case study and see how Tide has increased the number of loan applications it processes each year by 72%.

Identity verification, or ID&V, has become a cornerstone of trust and security in banking. Banks and financial institutions are under growing pressure to protect customers’ identities, ensure regulatory compliance, and deliver a smooth onboarding process. Without robust IDV solutions in place, financial services face heightened risks including identity theft, fraud, and regulatory breaches.

What is IDV in Banking?

IDV in banking refers to the process of verifying a customer's identity before granting access to financial products or services. This is essential not only for fraud prevention but also to meet Anti-Money Laundering (AML) and other regulatory requirements. Identity verification in banking typically includes document checks, biometric authentication such as facial recognition, and real-time verification processes.

Why is Identity Verification Important in Banking Today?

The importance of identity verification cannot be overstated. As banks move more services online, the ability to accurately confirm a customer’s identity has become a foundational requirement. IDV helps financial institutions prevent financial crimes, comply with complex regulations, and ensure secure digital interactions.

By verifying customers' identities early in the customer journey, banks can reduce fraud, streamline the onboarding process, and build long-term trust. This enhances the overall customer experience and safeguards sensitive financial information.

Which Regulations and Regulatory Bodies Require IDV in Banking?

Banks and financial institutions must comply with a range of regulatory requirements designed to prevent financial crime, protect consumers, and maintain the integrity of the financial system. Identity verification, or IDV, is a core component of these compliance obligations.

Key regulations and bodies that mandate robust IDV processes include:

The UK Money Laundering Regulations (MLR)

These regulations require firms to conduct thorough customer due diligence (CDD) and ongoing monitoring to prevent money laundering and terrorist financing. IDV is essential for verifying customers' identities during onboarding and maintaining compliance throughout the relationship.

Explore the regulations here.

The Financial Conduct Authority (FCA)

The FCA regulates financial services in the UK and enforces compliance with anti-money laundering (AML) laws. It expects banks to implement effective IDV processes that align with the latest best practices, particularly when offering digital financial services.

Explore the regulations here.

The Joint Money Laundering Steering Group (JMLSG)

The JMLSG provides guidance on implementing AML regulations in the UK. Their guidelines emphasise the importance of verifying a customer’s identity using reliable and independent sources, which makes IDV technologies indispensable.

Explore the regulations here.

The EU’s Anti-Money Laundering Directives (AMLD)

For banks operating across Europe, the EU AML Directives (currently the sixth version, AMLD6) set out stringent IDV and customer due diligence requirements. These include identifying beneficial owners, assessing risk, and ongoing monitoring to prevent misuse of the financial system.

Explore the regulations here.

What Challenges Do Banks Face Without Proper IDV?

Without effective IDV solutions, banks risk exposing themselves to a variety of threats. Weak or outdated verification processes can lead to increased cases of identity theft, fraudulent account openings, and failure to meet compliance standards. These challenges not only lead to financial losses but also damage brand reputation and customer trust.

Additionally, the cost of non-compliance with regulatory requirements can be substantial. Regulatory bodies across the UK and EU such as the Financial Conduct Authority (FCA) and Financial Action Task Force (FATF) now demand rigorous customer due diligence measures, making strong IDV in banking a non-negotiable necessity.

How Has Digital Banking Increased the Need for Strong ID Verification?

The rise of digital banking has fundamentally reshaped how financial services interact with customers. Online applications, remote account management, and mobile-first experiences have created more opportunities for cybercriminals. At the same time, customers expect fast, frictionless service.

This dual pressure has made it essential for banks to adopt IDV solutions that are both secure and seamless. Real-time ID verification, powered by facial recognition or other biometric authentication methods, ensures that banks can maintain high standards of security without compromising user experience.

How Does IDV Help Banks Balance Compliance and Customer Experience?

IDV in banking plays a pivotal role in helping financial institutions achieve the delicate balance between compliance and customer satisfaction. Traditional verification processes can be slow and intrusive, causing drop-offs during onboarding.

Modern IDV banking solutions offer streamlined verification that reduces friction while still meeting AML and Know Your Customer (KYC) requirements. Automated checks, real-time data validation, and intuitive user interfaces can all contribute to a smoother onboarding process and a better overall customer experience.

Why is Real-Time ID Verification Essential for Digital Onboarding?

Speed is a critical factor in the digital onboarding process. Real-time ID verification allows banks to authenticate customers quickly, enabling immediate access to products and services. This is particularly important in competitive markets, where delays can lead to lost business.

Real-time verification also plays a key role in fraud prevention. By identifying inconsistencies or potential red flags instantly, banks can act swiftly to prevent financial crimes before they escalate.

What Are the Risks of Weak ID Verification Processes in Financial Services?

Financial institutions that rely on outdated or manual verification systems are increasingly vulnerable to attacks. Fraudsters are becoming more sophisticated, using synthetic identities and social engineering to bypass weak controls.

The consequences of inadequate IDV can be severe, including regulatory fines, customer data breaches, and reputational damage. In an ever evolving financial landscape, where regulatory compliance and digital trust are non-negotiable, strong IDV solutions are essential.

What Features Should Banks Prioritise in an IDV Solution?

When selecting an IDV solution, banks should look for the following key features:

• Real-time verification to speed up the onboarding process
• Biometric authentication including facial recognition for added security
• Automated document checks that reduce manual effort
• Regulatory compliance tools to meet AML and KYC standards
• Scalability to handle growing volumes and international requirements
• Fraud detection capabilities to identify and flag suspicious activity

These features not only enhance security but also contribute to a more intuitive and trustworthy customer experience.

Advanced IDV solutions are designed to minimise friction while maintaining the highest levels of security. Features like pre-filled data, automated checks, and real-time decisioning allow banks to onboard customers more quickly without compromising accuracy or compliance.

This not only reduces abandonment rates during onboarding but also helps build long-term trust with customers, who increasingly expect both speed and safety from their financial service providers.

How Does FullCircl Help Banks Strengthen IDV and Stay Compliant?

FullCircl provides identity verification solutions tailored to the needs of modern financial institutions. By integrating real-time verification, biometric authentication, and advanced fraud prevention capabilities, FullCircl enables banks to meet regulatory requirements, prevent financial crimes, and deliver a seamless customer experience.

As the go-to IDV banking provider, FullCircl empowers financial institutions to improve customer onboarding, strengthen compliance, and stay ahead in an increasingly digital and regulated environment.

Want to learn more? Book a demo with the team today.

Earlier this month the FullCircl Insurance team headed to BIBA 2025.  

As always, we brought a strong presence to Manchester Central. Our goal being to help brokers move forward into a “new era” of success - by overcoming challenges and working smarter to remove operational bottlenecks, win and retain more business in a competitive market, stay ahead of regulatory requirements, and enhance experiences at every stage of the customer lifecycle.

It was great to connect with so many brokers and partners, and chat about the cool new tech we’re developing to power their growth, as well as how we are playing our role in driving meaningful change across the industry.

If we missed you, or if you didn’t make it this year, I’ve put together my 5 key takeaways so you can tap into the all the action from this much-loved annual event.

Mastering the art of influence to win new clients

This was my favourite fringe session. Lea Cheesbrough, Jonathan Miller, James Allotey, and Laura Hancock, chatted about how brokers can distinguish themselves in such a competitive market to win and retain clients, by enhancing value and establishing themselves as trusted partners.

This really resonated with me and the rest of the FullCircl team.  After all, our aim is to help brokers maintain and grow client relationships effectively, through superior life-cycle management and advanced data enrichment that reinforces their position as trusted advisors.

My key lessons were:

• The importance of developing a deep customer understanding: With a 360-degree view brokers a better placed to deliver a tailored outreach and support aligned to their specialism and markets, as well as proactively address gaps in coverage and underinsurance issues, thereby driving meaningful opportunities to maximise growth and improve outcomes.

‍

• More face-to-face engagement is a good thing. The role of technology must be to empower the human side of broking, not replace it. With access to comprehensive customer data, real-time insights, and data-driven triggers, brokers can tailor their offerings and interactions and move beyond generic approaches to offer truly personalised experiences that improve client engagement, retention and sales opportunities.

‍

• Sales is not a dirty word: brokers are sellers - this should be viewed as a bad thing. Quite the contrary, sales is about providing valuable advice and building relationships - two things synonymous with good broking. FullCircl empowers brokers with data and tools they need to become more effective sales professionals.

‍The power of partnerships

Aligning with BIBA’s 2025 manifesto emphasising the importance of “partnering to deliver value", there was lots of talk about the importance of collaboration across the industry, including with regulators, to achieve shared growth, tackle common challenges, improve outcomes and deliver more value for customers.

I couldn’t agree more.  Technology has a key role to play in driving a “new era” of broking success.  But I believe we need to move beyond solving a specific needs or problems in unison. Collaboration is central to success.  By building a collaborative model (such as we have done with our SmartBroker + Acturis integration) we can deliver brokers a modular ecosystem that leverages more opportunity from data and technology to the benefit of the entire insurance market.

Do more with what you've got

Winning new business is great.  But retaining business is just as vital to success and doesn’t require a huge investment.  Operating in such an uncertain geopolitical, economic, and regulatory environment means brokers need to work smarter to look after clients in the most impactful yet efficient way.

There was also a lot of talk at BIBA about slowing M&A activity, with consolidators moving their focus to Europe and away from the UK. Add to this the other key challenge of softening premiums, and the need for more organic growth becomes even more apparent.

Automation to reduce manual tasks such as pre-population and data enrichment can free brokers up to spend more time on high-value relationship building activities.  This can also provide a more accurate, holistic, and up-to-date customer view for improved decision making, the provision of tailored services, and upsell/cross-sell opportunities. As well as identify continuous opportunities to engage at every stage of the customer lifecycle and increase the value of their existing book of business.

Talent and diversity are still hot topics

It was great to once again witness BIBA's continued commitment to promoting the industry, attracting the next generation of leaders and driving greater equity diversity.

When it comes to talent, the conversation was not just about attracting a new generation of brokers, but also how we can work to retain and pass on the knowledge, experience and expertise of current industry leaders.  It’s about supporting the retention of vital skills and experience that ensure the “new era” of brokers maintain the trusted advisor status so well-honed by their older peers.  

Technology can help shape the skills of young brokers, enabling them to be more efficient, data-driven, and customer-focused.  AI-powered tools can help manage client portfolios, improve communication, and automate tasks, freeing up time to focus on client relationships and deliver strategic advice – both key skills current leaders can pass on.

Day two began with the Women in Insurance breakfast, which celebrated leadership, inclusion, and industry progress.  It was heartening to see that improving DE&I remains a key objective for industry (despite Trump’s best efforts to derail progress).

For us, “New Era” also means driving multicultural awareness and meaningful change across the industry.  So, we were delighted to host a cocktail party with our friends from iCAN, the Insurance Cultural Awareness network.  

FullCircl is iCAN’s newest sponsor, something we are all incredibly proud of. We support their mission to promote multicultural awareness and drive engagement in the insurance industry, which underscores our own commitment improving diversity and inclusion.

eTrade is a growing conversation

The surge in eTrade platforms continues, with real value being delivered in the specialist and SME markets - helping to make business more profitable and accurate.

FullCircl is supporting eTrade initiatives by providing data enrichment and tools that help brokers and underwriters alike navigate the complexities of online trading and compliance.  This includes assistance with Consumer Duty requirements, identifying relevant trade-related risks, and facilitating efficient onboarding, risk placement, and policy management.

Once again, this pinnacle event in the insurance industry calendar did not disappoint. Relationships matter, networking counts. Bring on BIBA 2026!

In an industry that prides itself on decentralisation, privacy, and user autonomy, the rise of KYC (Know Your Customer) requirements in crypto may seem contradictory. But as the cryptocurrency ecosystem matures, KYC has become a critical foundation for compliance, security, and trust, especially in regulatory-heavy jurisdictions.

This guide will explore what KYC crypto means, why it matters, and how platforms can implement robust KYC systems that satisfy both regulators and users without compromising scalability or innovation.

What Does KYC Mean in the Crypto Industry?

KYC refers to the regulatory requirement for businesses to verify the identities of their customers before offering services. In crypto, this means collecting key identity documents, validating personal information, and conducting AML checks against PEPs, sanctions, and global watchlists to prevent fraud and financial crime.

For cryptocurrency exchanges, custodial wallets, and decentralised finance (DeFi) platforms that operate in regulated jurisdictions, KYC is no longer optional. These businesses must identify users, assess the level of risk they pose, and continuously monitor their behaviour, all while adhering to regional and global compliance frameworks.

The driving force behind these checks is the fight against Anti-Money Laundering (AML) activities. Because cryptocurrencies offer a degree of pseudonymity, they have historically been misused for laundering illicit funds. KYC due diligence helps reduce this risk by tying transactions to verified individuals, allowing regulators and platforms to trace and block suspicious activity.

Why Is KYC Compliance So Critical for Crypto Businesses?

KYC is not just a legal formality, it’s a strategic requirement that protects crypto platforms from reputational damage, financial penalties, and regulatory shutdowns. Without a reliable digital identity verification process in place, businesses expose themselves to exploitation by criminals and create serious vulnerabilities within their operational model.

Implementing KYC also builds trust. Users are more likely to engage with platforms that are transparent about they handle customer data. For institutional investors and banking partners, KYC-compliant platforms signal maturity and reliability, opening doors to partnerships that would otherwise be inaccessible.

Critically, KYC compliance allows crypto firms to demonstrate that they take their regulatory responsibilities seriously. This is essential in a landscape where governments and financial authorities are becoming increasingly proactive in cracking down on non-compliant platforms.

Breaking Down the KYC Process in Crypto

The KYC process within a crypto context involves several stages to effectively verify the identity of customers.

The journey typically begins with identity collection, where users must submit their full name, address, and date of birth. This is then supported by document verification, where official forms of identification, such as passports or driver’s licences, are uploaded and cross-referenced for authenticity.

Many platforms now incorporate biometric verification to combat fraud. Liveness checks confirm that the user is physically present and matches the submitted documentation, to help ensure that identity theft or synthetic identities don’t slip through the cracks.

However, KYC doesn’t end after onboarding. Continuous monitoring is crucial. This involves tracking transactional behaviour for anomalies, re-validating data during user lifecycle events (like account updates), and ensuring customers aren’t added to new sanctions or politically exposed persons (PEP) lists. These processes form part of a risk-based approach, where higher-risk individuals undergo enhanced scrutiny.

Ultimately, effective KYC procedures not only protect the platform but also improve user confidence and contribute to a healthier, more sustainable crypto ecosystem.

Is KYC Mandatory in the UK for Crypto?

Yes. In the UK, KYC is not just good practice, it's the law. Under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, firms operating as cryptoasset exchange providers or custodian wallet providers must register with the Financial Conduct Authority (FCA) and meet a robust set of KYC and AML obligations.

These regulations are closely aligned with international standards set by the Financial Action Task Force (FATF) and cover a range of requirements, including customer identity verification, risk assessments, and ongoing due diligence.

The purpose of these laws is to bring crypto services in line with traditional financial institutions, ensuring the sector doesn’t become a blind spot for regulators. For businesses, this means establishing comprehensive policies and systems that not only verify user identity at the point of onboarding, but also maintain accurate records, conduct ongoing risk reviews, and report any suspicious activity.

Who Needs to Implement KYC Under UK Law?

KYC obligations apply to any UK-based business that offers exchange services (such as converting fiat to crypto or vice versa) or acts as a custodian of users’ digital assets. This includes:

• Centralised crypto exchanges
• Custodial wallet providers
• Platforms that facilitate crypto transactions or hold user assets on their behalf

These firms are required to conduct full Customer Due Diligence (CDD), including identity verification, and must be able to demonstrate that their systems can detect and respond to suspicious behaviour. Failure to do so can result in enforcement actions, fines, or even being barred from operating within the UK.

Do All Crypto Wallets Require KYC?

No, but the distinction is critical. Custodial wallets, where a third party manages the private keys on behalf of users are considered financial intermediaries and must implement KYC under UK law. Non-custodial wallets, by contrast, allow users to retain full control over their private keys and are often not subject to the same regulations, at least for now.

However, the regulatory environment is evolving. As policymakers seek to tighten oversight of cryptoassets, even decentralised wallet providers may soon face obligations, especially if they integrate with regulated services or facilitate large volumes of high-risk transactions.

The Risks of Weak KYC Practices

Weak or poorly implemented KYC systems can quickly become a liability. Without clear checks in place, platforms open the door to financial crime, including money laundering, terrorist financing, and fraud. This not only damages a platform’s reputation, but also attracts the attention of regulators and law enforcement.

Beyond criminal risk, poor KYC processes can cause operational bottlenecks. Incomplete or inaccurate data may force compliance teams to revisit user records, delay transactions, or even block legitimate customers, all of which erode trust and lead to user churn.

The cost of non-compliance can be enormous. Enforcement actions from the Financial Conduct Authority (FCA) or other bodies can result in multi-million-pound fines, licence withdrawals, or bans from operating in major markets. For growing crypto businesses, these setbacks can be fatal.

How Is KYC in Crypto Different from Traditional Finance?

At a basic level, KYC in crypto shares similarities with its counterpart in traditional finance: identity checks, document verification, ongoing due diligence. But the context is very different.

Crypto platforms face unique challenges due to the borderless, pseudonymous, and real-time nature of blockchain transactions. Unlike banks, which operate within a defined regulatory perimeter and rely on decades-old customer databases, crypto firms must rapidly assess identity and risk on a global scale, often with limited supporting infrastructure.

In many cases, users can sign up and transact within minutes. That means KYC systems must be fast, accurate, and resilient, without the luxury of long lead times or branch-level checks.

The pressure to balance compliance with user experience is immense. Unlike traditional banks, crypto platforms that introduce too much friction risk losing users to less regulated competitors. That’s why automation and smart data integration have become so essential.

What Makes Scaling KYC So Challenging for Crypto Firms?

As crypto adoption grows, so does the volume of users and the diversity of risks they present. Many crypto platforms experience exponential growth, onboarding thousands of new users each week. Manual processes simply can’t keep up.

Scaling KYC also means dealing with a broader array of jurisdictions, each with different laws, risk tolerances, and data requirements. What works for FCA compliance may not meet the standards of regulators in the EU, US, or Asia.

Additionally, as platforms introduce new services, such as lending, staking, or token issuance, their exposure to regulatory oversight increases. This puts additional pressure on KYC teams to adapt quickly, deploy new tools, and always remain audit ready.

Without the right infrastructure, compliance becomes a bottleneck instead of a business enabler.

Why Automating KYC Drives Efficiency and Compliance

Automation is not a nice-to-have in crypto, it’s a necessity for any growing crypto platform. Automated KYC solutions eliminate repetitive manual tasks and allow compliance teams to focus on higher-risk scenarios where human judgement is essential.

By integrating with identity databases and biometric tools, automated systems can onboard new users in seconds, not days. They also adapt more quickly to changing regulations and reduce the margin for human error.

Perhaps most importantly, automation enables a risk-based approach. Instead of applying a one-size-fits-all policy, platforms can tailor verification intensity based on user behaviour, location, and transaction volume. This results in better resource allocation and significantly lowers compliance costs.

How FullCircl Supports Crypto Firms with Seamless KYC

At FullCircl, we understand the unique challenges that crypto businesses face, from regulatory ambiguity to operational scale. That’s why our KYC solution is designed specifically to help crypto exchanges, DeFi platforms, and fintech innovators stay compliant, agile, and user focused.

Our platform offers real-time onboarding, powered by integrations with global identity and document databases. This means users can be verified quickly and securely, with full audit trails and risk scoring built in.

FullCircl’s solution aligns with both FCA and FATF requirements, ensuring our clients can meet regulatory obligations while remaining adaptable to future regulatory shifts. From sanctions screening to Enhanced Due Diligence (EDD), our system scales with your business.

The return on investment is clear: crypto firms that implement FullCircl experience faster user conversion, fewer compliance delays, and stronger regulator relationships. In a market where trust and speed are everything, we help you deliver both.

The Future of KYC in Crypto Starts Now

As crypto moves into the mainstream, KYC is becoming a baseline expectation, not just from regulators but from users and partners alike. Platforms that invest in strong KYC systems today will not only avoid legal pitfalls, but also build the kind of trust that drives long-term growth.

With FullCircl, crypto firms can meet compliance requirements without compromising on speed or user experience. Whether you're launching a new exchange, scaling your DeFi platform, or expanding into new markets, our KYC solution provides the infrastructure you need to move confidently and compliantly.

Want to see how FullCircl can transform your KYC process? Book a personalised demo today.