Overview
Anti-Money Laundering Directives (AMLD5 and AMLD6) require regulated entities to identify and verify their customers before establishing a business relationship. This includes Customer Due Diligence (CDD), Enhanced Due Diligence (EDD), and ongoing monitoring.
iDenfy provides a complete AML compliance toolkit — from identity verification and beneficial owner identification through to real-time sanctions screening and continuous monitoring — backed by 100% sanctions list accuracy and data from 210+ jurisdictions.
CDD requirements and iDenfy features
Standard Customer Due Diligence
| AML Requirement | iDenfy Solution | What it does |
|---|
| Identify the customer | ID Verification (KYC) | Document + selfie biometric verification across 3,000+ document types from 200+ countries |
| Verify customer identity | AI + human review | 12-step verification with AI processing in 0.02 seconds and in-house KYC expert manual review (max 3 minutes) |
| Identify beneficial owners | Business Verification (KYB) | Automated UBO identification and verification across 180+ registries, 540M+ company records from 120+ countries |
| Screen against sanctions/PEPs | AML Single Check | Real-time screening against global sanctions lists, PEP databases, and adverse media — results in seconds |
| Ongoing monitoring | AML Monitoring | Continuous screening: sanctions every 24 hours, PEPs every 7 days, adverse media every 30 days |
| Record keeping | Verification reports | Full audit trail with timestamped results and downloadable PDF reports for compliance records |
Enhanced Due Diligence (EDD)
For high-risk customers, iDenfy supports additional checks:
- Proof of address — AI-powered PoA verification (utility bills, bank statements)
- Additional document steps — request supplementary documents (source of funds, employment contracts)
- Risk scoring — configurable risk assessment with five levels (Very Low to Very High), country-based risk assignment, and custom rule creation
- Adverse media screening — 15,000+ sites across 195 countries, 99.3% classification accuracy, 11+ languages
- Bank verification — instant verification across 2,500+ banks in 29 EU countries with transaction analysis for red flags
- Criminal background checks — state and county-level court record searches (USA)
AML screening data sources
Sanctions databases
iDenfy screens against sanctions lists from every major regime worldwide:
- International: United Nations Security Council (14 resolutions)
- Americas: USA (OFAC SDN 30+ programs, OFAC non-SDN 6 lists, State Department 4 lists), Canada, Argentina, Panama, Trinidad and Tobago
- Europe: EU (55+ programs), UK HMT/OFSI (30+), Belgium, Czechia, France, Switzerland, and 15+ additional countries
- Asia-Pacific: Australia, China, India, Japan, South Korea, Singapore, and 15+ additional countries
- Middle East & Africa: Bahrain, Egypt, Iran, Israel, Saudi Arabia, UAE, and 10+ additional countries
Sanctions accuracy: 100% accuracy, 100% recall, F1 score = 1
PEP database
- 45,000+ public sources across 210+ jurisdictions
- Updated within 48 hours of elections or changes
- Three tiers: Tier 1 (heads of state, ministers), Tier 2 (mid-to-high ranking officials), Tier 3 (local politicians)
- End-of-tenure retention: 12-18 months post-service
- Configurable matching threshold with fuzzy matching, transliteration, and cultural affinity detection
- 15,000+ sites across 195 countries
- 99.3% classification accuracy
- Excluded sources: social media, tabloids, blogs, untrusted sources
- 11+ languages: English, Spanish, French, Italian, Polish, Russian, Estonian, Ukrainian, Swedish, Lithuanian, Bulgarian (more on request)
Additional screening categories
- Reputation Risk Exposure (RRE)
- Profile of Interest (POI)
- Regulatory Enforcement List (REL)
- State Owned Enterprise (SOE)
Recommended setup by obligation
Applies to: Banks, EMIs, payment institutions, investment firmsRecommended configuration:
- KYC with liveness detection (mandatory)
- AML screening with ongoing monitoring
- KYB for corporate account opening with UBO verification
- Proof of address for account opening
- Risk-based approach: additional verification steps triggered by risk score
{
"clientId": "customer-123",
"callbackUrl": "https://your-app.com/webhook",
"liveness": true,
"amlCheck": true
}
Applies to: Exchanges, wallet providers, DeFi on-ramps, token issuersRecommended configuration:
- KYC with liveness detection (mandatory under Travel Rule and MiCA)
- AML screening with ongoing monitoring
- Risk scoring with country-based risk assignment
- Transaction monitoring integration via webhooks
{
"clientId": "customer-123",
"callbackUrl": "https://your-app.com/webhook",
"liveness": true,
"amlCheck": true,
"riskAssessment": true
}
Applies to: Online casinos, sports betting, lottery operatorsRecommended configuration:
- KYC with liveness detection and age verification
- AML screening with ongoing monitoring
- Source of funds verification for high-value deposits
- Enhanced due diligence triggered by risk score thresholds
{
"clientId": "customer-123",
"callbackUrl": "https://your-app.com/webhook",
"liveness": true,
"amlCheck": true,
"ageVerification": true
}
AMLD6 specifics
AMLD6 (effective 2021) expanded AML obligations with:
| Change | Impact | How iDenfy helps |
|---|
| Extended predicate offences | More crimes constitute money laundering (22 categories) | Broader AML screening categories including RRE, POI, REL, and adverse media covering all predicate offence types |
| Corporate criminal liability | Companies are directly liable for money laundering failures | Full audit trail, timestamped verification reports, and PDF generation for demonstrable compliance |
| Harmonized penalties | Minimum 4-year imprisonment across EU | N/A (enforcement) |
| Extended scope | Tax crimes and cybercrime included | Adverse media and PEP screening cover tax-related and cybercrime-related exposure |
| Aiding and abetting | Attempting, aiding, and conspiring also punishable | Ongoing monitoring catches changes in status post-onboarding |
Ongoing monitoring
AML compliance does not end at onboarding. iDenfy’s continuous monitoring ensures you stay compliant:
| Check type | Frequency | What it covers |
|---|
| Sanctions | Every 24 hours | All global sanctions lists |
| PEPs | Every 7 days | 210+ jurisdictions, 45,000+ sources |
| Adverse media | Every 30 days | 15,000+ sites, 195 countries |
- Default monitoring period: 12 months (auto-extends)
- Manual recheck available at any time
- Alerts delivered via webhook when a customer’s status changes
- All monitoring results are timestamped and stored for your compliance records
Set up AML Monitoring →
Record keeping
AML regulations require retention of CDD records for at least 5 years after the end of the business relationship. iDenfy supports this with:
- Configurable data retention periods — up to 8 years by plan, or custom configuration
- Full audit trail — every verification step timestamped and stored
- PDF report generation — downloadable compliance records for each verification
- Timestamped AML screening results — initial and ongoing monitoring results preserved
Retention by plan
| Plan | Retention period |
|---|
| Startup | 3 years |
| Silver | 5 years |
| Gold | 8 years |
| Custom | Configurable (up to 8 years) |
Do not delete verification records that are subject to AML retention requirements, even if the customer requests GDPR erasure. AML record-keeping obligations take precedence over the right to erasure (Art. 17(3)(b) GDPR — processing necessary for compliance with a legal obligation). Document this exception in your privacy policy.
Results from regulated industries
| Client | Industry | Key result |
|---|
| Monneo | Payments / Fintech | Verification in under 3 minutes |
| Mano Bank | Banking | 85% approved in avg. 2 minutes |
| Neobridge | Crypto / DeFi | +77% pass rate, -67% verification costs |
| ITCS Trade | Trading / CFD | 87% first-time approval rate |
Resources
Compliance inquiries: dpo@idenfy.com
Technical integration: Open a ticket
