ID verification firm Thirdfort announced this week it has raised $20 million thanks a recent investment from Breega and Element Ventures.
Based in the U.K., Thirdfort offers a risk engine for corporate clients in the legal, property and finance sectors, letting them carry out know your customer (KYC) checks and make sure they’re adhering to anti-money laundering (AML) regulations.
The firm also provides clients’ consumer customers with an app that connects the business with the customer’s bank, allowing for secure payments.
“Today, client ID verification, source of funds confirmation (guilty until proven innocent) and client funds transfer requests still predominantly rely on disjointed and paper-based processes,” Olly Thornton-Berry, the company’s managing director and co-founder, said in the announcement.
“Fraudsters and money launderers are ruthlessly exploiting this by using fake IDs, falsified financial records and companies with obscure ownership structures. We’re building the first platform for businesses to use on both individuals and corporate clients that encompasses KYC and AML, Source of Funds, and secure payments.”
Clients of businesses that use Thirdfort also have the option to download the company’s mobile app – which has been downloaded by more than 500,000 people in the last two years – to connect bank feeds, input verification data and — eventually — securely send funds to their professional advisors, the company said.
The announcement comes just days ahead of the roll out of stricter new KYC eCommerce rules in the U.K., scheduled to take effect March 14.
The new rules require online retailers and payment service providers (PSPs) to make sure the customer is who they claim to be before processing the payment transaction.
The U.K.’s Financial Conduct Authority (FCA) says eCommerce shoppers should be prepared to have their identities checked and perhaps see more credit card transaction declines.
The FCA says the rules are designed to enhance payment security and limit fraud. The rules apply when a payer initiates an electronic payment transaction, accesses their payment account online or conducts any action that may pose a risk for payment fraud.