The new year has arrived. 2020 promises to bring great changes in the area of Fintech. Fintech is a rapidly evolving market, characterised by continuous innovation and a quest for improvements. This allows for a breath of fresh air to blow through the world of financial services and enables positive change.
To stay well informed of the developments in this sector, we have listed the most important trends for you.
The Fintech world requires us to be honest and open. This is why it is important to check how complete you actually are. Currently, a lot of interesting solutions are being developed to help businesses and organisations be as complete as possible. There are many opportunities in the area of combating fraud. As SCOPE, we embrace the challenge to combat fraud, money laundering and terrorist financing, so that hopefully these forms of identity and payment fraud will have disappeared forever in a few years’ time.
It is sometimes said that data is more valuable than oil. It has even become a means of payment. The risks associated with the protection of both financial assets and data are constantly increasing. Meanwhile, Fintechs are also trying to fill this gap with their solutions. The Dutch Authority for the Financial Markets (AFM) warns for fraudulent practices. Safety is paramount and people increasingly realise that this safety must be secured.
In the Netherlands, solutions based on the (public) cloud and hosted IT can be called substantial in 2019. The growth in outsourcing IT activities and cloud deployment is expected to increase considerably this year, as IT budgets are increasingly oriented towards hosting and cloud. It is more important than ever to make your next investments in the cloud. In most cases, your systems are much safer in the cloud than in a local environment. Cloud suppliers are obliged to take measures in accordance with the GDPR privacy legislation. If you switch to the cloud, remaining compliant will be easier in most cases.
The fifth Anti-Money Laundering directive has to take effect in 2020. This directive expands the rules for the prevention of money laundering and terrorist financing. This year the UBO register, among others, will come into force in the Netherlands. A UBO is an Ultimate Beneficial Owner, or the ultimate interested party. From this year onward, companies and legal entities are obliged to register their (in)direct owners. Part of this personal data such as the name and the economic interest of the UBO will become public through the register.
At SCOPE FinTech solutions we can conduct a UBO check through which we try to find out who the UBO behind a company is. If your client is not a natural person, you are obliged to establish who the ultimate interested party or parties of the client are. As part of the check, SCOPE CDD On Demand automatically requests extracts from the Chamber of Commerce. These extracts are analysed and the persons and companies concerned are identified and listed. When the structure is clear, an attempt is made to establish which person or persons are the UBOs.
Our tip to you is to keep moving in line with the Fintech market and to keep improving your business at all times. In order to respond to these important developments we have developed a new service for you called SCOPE CDD On Demand. We will be happy to help you with your identity check, safety, cloud, and UBO issues.
Better be safe than sorry!