Monetary and Banking Research Institution
Date:1/9/2019 9:13:31 AM   |   Code : 294022
Confronting Money Laundering with New Authentication Methods
Confronting Money Laundering with New Authentication Methods
A payment service expert said: “Aggregation of identity information and the use of biometric technology, is a strategy to enforce robust authentication against money laundering, and biometric authentication has been implemented on the national smart card.”
 

According to the Public Relations Department of the Monetary and Banking Research Institution and quoted by the news headquarters of the 8th Annual Conference on Electronic Banking and Payment Systems, Mohsen Azizi added: “One of the security areas that is widely used in non-banking services of the banks is authentication technology. One of the strategies to deal with money laundering is to use strong authentication methods.

“Today, the dynamism and security of a system is verified by authentication,” he added. “Therefore, a system with no authentication is known as an unsafe system.”

The expert in the field of payment stated: “Authentication is largely based on information and data. Of course, the traditional authentication method in the country is old-style and is done in person in bank branches by matching the faces of individuals with identification documents, such as national cards.

Azizi emphasized: “Authentication data is very valuable and, if combined, processed and analyzed in one place, will facilitate access and remote authentication operations in the future.”

He highlighted remote authentication as the most important factor in providing remote services to the financial industry, and noted: Strong authentication is one of the most important factors in the development of remote services and the move towards digital banking in which biometric technology has a significant role.

Azizi continued: “Biometric authentication, which is the authentication of individuals by measuring the unique characteristics of the human body, is one of the strongest types of authentication that depends on the type of devices and algorithms used.

"The best practices in this area is the use of biometric authentication, which is based on the technology and have been used in intelligent national smart cards. The fingerprint scanning, electronic signature, and eye iris in the National Intelligent Execution Card and the biometric information of each individual has been registered in an integrated system in the registered domain," said the field expert on the question of how best to use strong authentication to prevent fraud and money laundering in relation to the infrastructure and laws of the country.

Azizi said, collecting identity information and using biometrics as one of the best ways to apply strong authentication to deal with money laundering. Using Face Detection or fingerprint, which is currently implemented in smartphones with the development of technology, is a good way that can be implemented in the financial industry, which has been implemented in Mobile Banking of some financial institutions.

"The data is a good source for analyzing how the customer’s transaction behavior are that is applied to identify fraud types," said the consultant of the Informatics Services Company on developing new technologies and data governance as a way to identify and counter fraud and money laundering in the financial industry.

 

Azizi pointed out: “Identifying fraud and money laundering in the payment industry that is card based, using data, and analyzing customer behavioral information are good tools for preventing fraud and providing timely warnings to customers and payment companies in detecting fraud and money laundering.

The field expert added, "The algorithms used to analyze customer behavior play an important role in detecting fraud and suspicious transactions." However, customer behavior information in the banking and payment industry is not only effective in preventing fraud but also in improving business models.

It should be noted that the 8th Annual Conference on Electronic Banking and Payment Systems with the theme of the Blockchain Revolution will be held in the Milad Tower Conference Hall on 9th and 10th of February.

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