April 19, 2023

How to maximize business growth while complying with FINTRAC

As the digital finance landscape rapidly evolves, it can be challenging to stay compliant with Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) guidance. Here, Plaid executives Mark Hines of Financial Institutions Partnerships and Identity Verification (IDV) Specialist David Nguyen discuss ways to minimize fraud risk and maximize growth, all while adhering to FINTRAC’s verification regulations. 

Driving the conversation:  

  • Key takeaways from the latest FINTRAC guidelines 

  • How to prioritize the fastest verification methods 

  • Simple ways to improve risk assessment

  • How to create a frictionless user experience with Plaid IDV

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Key Takeaways

  • Many Canadian companies use verification methods that create onboarding friction including document and selfie verification and credit bureau integration. This results in a poor onboarding experience, lower pass rates, and long-tail regulatory risks. 

  • FINTRAC verification guidelines are required anytime a consumer opens a financial account or moves money. To adhere to them, companies can use one of five methods including accessing Canadian credit files, comparing data elements from two reliable sources, and authenticating a government photo ID. However, integrating new verification technology can be costly.

To learn how digital verification works, read our article "How digital identity verification works: 7 vital data checks."

Plaid IDV offers an all-in-one verification solution with these key features:
  • Simplify onboarding with a single software development kit that combines identity verification, fraud screenings, and back-office verification management.

  • Prioritize the fastest verification method, often confirming identities in under 30 seconds, with a 90% pass rate.

  • Assess fraud risk using hundreds of consumer data points. Plaid IDV captures data from phone and email registration and usage, device and IP address history, and behavioral analytics–feeding it directly into the IDV fraud engine.

  • Provide comprehensive money laundering screenings using government lists, proprietary data, and name matching across 18 different languages.

  • Customize the onboarding flow, risk rules, and success criteria. Changes can easily be made the same day using Plaid IDV’s no-code editor.

  • Offer a holistic solution, making it easier to assess and improve onboarding results, and ensure FINTRAC compliance.   

Go deeper: Learn more about Plaid IDV