Global full-cycle verification provider Sumsub received full regulatory compliance approval for its non-doc identity verification solution following a regulatory-led audit conducted by FINTRAIL, a global-consultancy specialising in financial crime risk management and regulatory compliance.
The company is set to expand its Non-Doc Verification solution into 10 additional markets, including Australia, Canada, Hong Kong, and the UAE. Currently, it is operating in 13 countries, including key markets in the Asia Pacific (APAC) region such as India and Indonesia.
According to Sumsub's 2023 Identity Fraud Report, the incidence of fake IDs in developed countries has surged by an average of 163%,
while fake passports have increased by 147% between 2021 and 2023.
In APAC, countries such as Indonesia, Hong Kong, and Cambodia experienced more than twofold increase in identity fraud rates, highlighting the need for tailored solutions that can adapt to emerging threats.
Non-documentary identity verification, or Non-Doc, enables verifying customer identities without requesting their IDs, offering an alternative to traditional document verification services. Instead, users provide key personal information such as an identification number, which is then securely cross-referenced with secure government databases by the verification provider.
According to a press release, while this relatively new practice is gaining popularity among both client firms and verification vendors, Non-Doc has already proved to be a compliant KYC method in many jurisdictions.
Other key benefits of document-free VS document-based verification include:
- Faster and more convenient user onboarding: verification time is reduced from 30 seconds to 4.5 seconds on average;
- As a result, companies see +35% growth in customer pass rates (with as high as x2 increase in some cases);
- Opportunities for business growth and scaling to emerging markets thanks to over 95% population coverage in each country;
- Enhanced productivity and simplified case management with automated user data extraction and immediate updates, resulting in 53% reduction in verification processing time.
The solution has been tested by FINTRAIL based on two main criteria: regulatory compliance in each jurisdiction (AML/CTF legislation, crypto and trading regulatory guidelines along with other industrial requirements), and technical effectiveness (whether technical processes like identity data authentication or bank credentials checks are conducted in accordance with local regulatory conditions).
