In November in 2024 there were 10 insurers, nearly 40 insurance brokers and over 300 insurance agents in the market participant register of the Estonian Financial Supervision Authority. All insurers must comply with the Financial Supervision Act - KYC and AML regulatory requirements.
As part of EAS and EU funded R&D project, we will be developing a KYC processor to streamline KYC and AML compliance for insurance providers. The solution will enable automated, machine-readable risk assessments by leveraging the RIA consent service, X-road queries, and national and international databases. The KYC processor will ensure real-time compliance by analysing client identity, sanctions lists, and potential risk factors, helping to prevent money laundering, corruption, and terrorism financing. This innovation enhances regulatory adherence while simplifying verification processes for the insurers. At the end of the project we will have developed a completely new digital solution - KYC FlowEngine.
KYC FlowEngine will accelerate and simplify KYC and AML compliance processes, providing a seamless and rule-based workflow that adapts to changing regulatory requirements. The solution is compatible with X-tee in Estonia and uses the RIA consent service, enabling secure and automatic access to national databases based on customer consent. Our platform will enable fast and secure customer registration, reducing manual labor, increasing data accuracy, and ensuring seamless customer experience that meets modern compliance standards and requirements.
Definitions:
KYC - Know Your Customer standards are designed to protect financial institutions against fraud, corruption, money laundering and terrorist financing.
AML - Anti-Money Laundering is an international web of laws, regulations, and procedures aimed at uncovering money that has been disguised as legitimate income
Therefore, AML encompasses all measures to prevent money laundering, including blocking criminals from becoming customers and monitoring transactions for suspicious activity. KYC focuses on verifying customer identities, screening them, and assessing their risk to your business
