South African regulatory technology platform GloRep is now live after being launched in beta phase from 1 June.
The platform was launched by crypto-currency expert Frank Leonette, who says in today’s regulatory environment, businesses across various sectors – including banks, crypto platforms, brokerages, e-commerce, retail, insurance, real estate, and gaming – face an increasing burden of compliance.
The Financial Intelligence Centre (FIC) and other regulatory bodies impose strict compliance mandates that many companies are unprepared to meet, often overlooking the associated costs in their business models.
According to Leonette, compliance is not limited to financial services. “Industries like law, real estate, casinos, and high-value goods are also under scrutiny from regulatory organisations such as the FIC in South Africa, the Financial Conduct Authority in the UK, MONEYVAL in the EU, and the Financial Crimes Enforcement Network in the US,” he says.
He adds that the costs associated with client onboarding, know your customer (KYC), anti-money laundering (AML), and counter-terrorism financing (CTF) screening are significant challenges that companies must address.
“This requires sophisticated systems and trained compliance teams to navigate the reporting requirements of various financial authorities.”
Leonette explains that the cost of onboarding clients from a KYC, AML and CTF point of view are variable and depend on the customer’s requirements and volumes.
“Generally speaking, a verification can cost between R20 to R50 per client onboard, depending on the enhanced KYC requirements and level of post-onboard monitoring,” he says.
“GloRep addresses the financial strain of compliance through its automated ID verification and compliance solution. By reducing the need for additional personnel, GloRep simplifies the compliance process with a suite of features, allowing businesses to meet regulatory requirements more effectively and efficiently.”
Leonette explains that the platform automatically extracts identity information from submitted documents, runs AML sanction checks across multiple watchlists, and verifies identities against government databases.
He points out that this streamlined process allows businesses to onboard clients without significant disruptions.
“Reporting to the FIC can be burdensome, requiring cash threshold reports and suspicious activity reports via the goAML website. GloRep simplifies this by generating pre-formatted reports for easy upload and offers direct integration with the FIC goAML platform, enabling automatic report submissions in 30 seconds.
“In addition, GloRep is assisting small businesses with a subsidised business start-up solution that will alleviate much regulatory pressure on new small businesses. The start-up initiative will allow businesses to focus on what they do best.
“Identifying beneficial owners of a business or trust is now a legal requirement globally. GloRep's software assists in mapping the beneficial ownership structure, helping businesses comply with regulations. It clarifies the ownership layers, particularly when individuals own 5% or more of a company, which can often be obscured by complex corporate structures. GloRep integrates with the CIPC to obtain accurate information, simplifying this process.”
He points out that as KYC legislation is enforced worldwide to combat financial crimes, companies must adhere to these regulations or face severe penalties.
“Knowing your customer has become a foundational principle of online transactions, highlighting the need for robust compliance solutions to navigate the complex regulatory landscape effectively.
“Companies that fail to implement effective KYC/AML measures risk being associated with criminal activities, potentially damaging their reputation and eroding trust among customers, partners, and stakeholders.”
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