Through this partnership, Sumsub will provide Wirex with Transaction Monitoring capabilities, Travel Rule compliance solutions for virtual asset transfers, and its KYC (Know Your Customer) software for client identity verification.
The Financial Action Task Force (FATF) mandates that virtual asset service providers (VASPs) adhere to Anti-Money Laundering (AML) regulations to ensure transparency and accountability. UK regulations, effective from 1 September 2023, fall in line with this. Sumsub's solution facilitates secure Travel Rule information transfers between virtual VASPs, performing necessary KYC checks, AML screening, and verification in line with regulatory requirements and Wirex's needs.
Integration of the Travel Rule solution with Sumsub's advanced transaction monitoring (KYT) solution was designed to be straightforward. Transaction monitoring involves procedures such as sender/receiver profile analysis, risk score calculation, and cross-referencing KYC and transaction data.
Sumsub's Transaction Monitoring solutions aim to help Wirex in preventing financial fraud and maintaining compliance. According to internal data cited in the official press release, 70% of fraudulent activity occurs post the Know-Your-Customer (KYC) onboarding phase, underscoring the importance of continuous monitoring.
Wirex representatives expressed enthusiasm about the partnership, noting that it ensures compliance with impending regulatory requirements for virtual asset service providers. By leveraging Sumsub's Transaction Monitoring capabilities and Travel Rule compliance solutions, Wirex aims to uphold high standards of security and protection for its user verification processes and users' virtual asset transactions.
In turn, Sumsub officials commented on the increasingly complex regulatory landscape, particularly for digital asset firms. They highlighted Sumsub's dedication to providing advanced verification and compliance solutions that help businesses navigate the evolving terrain beyond the initial onboarding.
In July 2023, Sumsub announced its Payments Association membership. Based on the information detailed in the press release, this marked the company’s ongoing commitment to bettering compliance measures and providing ‘best-in-class’ solutions in the payments ecosystem. In essence, by becoming a member of The Payments Association, Sumsub seeked to reinforce its position as a trusted partner for businesses activating within the fintech and payments industries.
In the same month, Sumsub revealed its plans to make Singapore its APAC headquarters offering full-cycle verification services as part of its expansion goals. The strategic move came as a response to the advancing threat of identity fraud in the region with the increase in digital startups and is set to reinforce Sumsub’s presence in APAC, creating partnerships and serving new clients in Singapore, Hong Kong, and beyond.
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