Sumsub, a global tech company fighting digital fraud and helping businesses stay fully compliant, is launching a KYT solution for fast and effective transaction monitoring tailored to customers’ specific needs. With this new product, Sumsub can offer clients a full-cycle identity verification platform with seamless orchestration capabilities, ensuring trust along the whole user journey. 

Know-your-transaction (KYT), also known as transaction monitoring, is a set of procedures aimed at detecting suspicious customer activity. This helps businesses stay AML/CFT compliant and prevents internal and external fraud.

Unlike other digital verification providers, Sumsub is the only platform offering over 300 ready-to-use risk scenarios, while also enabling companies to create custom rules and risk profiles. Coupled with no-code rules setting, this makes Sumsub’s KYT particularly easy to navigate. 

Sumsub’s KYT also offers flexible settings for risk scoring, alerts and actions with simple role and task management. Plus, users can continuously monitor the status of transactions in real-time. All data is stored and managed in one place, and full reports can be easily downloaded for both internal use and submission of STR's (suspicious transaction reports) to regulators.

KYT checks are increasingly recommended for the financial industry. This includes crypto marketplaces and services, payment service providers, fintech companies, marketplaces and online gaming platforms. However, transaction monitoring may be beneficial for other online businesses if they wish to have an additional layer of protection against financial fraud.

As for regulated, AML-obligated financial businesses, failing to perform KYT and report suspicious transactions can lead to huge penalties. For instance, UK regulator FCA fined HSBC Bank £63.9 mln ($73.8 mln) for deficient transaction monitoring controls in 2021. Earlier in 2020, Deutsche Bank got a $150 million penalty by the New York State Department of Financial Services for its failure to prevent hundreds of suspicious transactions totaling millions of dollars.

“KYT checks are currently in especially high demand by fintech businesses. Sound transaction monitoring requires analyzing both the user's background information and the transaction itself. The majority of identity verification providers do not offer transaction monitoring, while those who do usually focus on KYT with no access to customers’ onboarding data. At Sumsub, we check both transaction information and KYC information from the applicant’s profile to calculate risk scoring for a more profound and complete transaction evaluation. This allows us to estimate risks more accurately and efficiently, which ultimately protects our clients from chargebacks, financial fraud, money laundering as well as regulatory fines”, says Vyacheslav Zholudev, Sumsub’s Co-founder and CTO.

All in all, Sumsub is now offering its global clients not just identity verification, but an end-to-end orchestration solution that covers each step of the customer lifecycle, including onboarding, authentication, confirmation of risky actions, and transaction monitoring.