iSignthis - Know Your Customer - The DNA of a Payment Message

“A simpler, faster and safer iden1ty experience“

1 iSignthis © 2014

iSignthis Ltd (ASX : ISX) Outline April 2015

2 iSignthis © 2014

We are an iden1ty company, providing solu1ons for •  Global, KYC Regulated En>>es : Remote, fully automated, An1

Money Laundering / Counter Terrorism Funding customer due diligence compliance / know your customer (KYC) for both consumer and merchant on-‐boarding.

•  European Union PSP’s : Online Payment Authen1ca1on to mandatory ECB/EBA 1st Aug 2015 compliance requirements.

•  Global PSP or Merchants: Commercial an1fraud solu1ons for online Merchants leveraging above exper1se.

Who is iSignthis Ltd?

3 iSignthis © 2014

Iden>ty Proofing (PATRIOT ACT / AML KYC / Sec>on 6 EBA)

Verify the iden1ty of three billion customers to an interna1onal standard in 190 countries

Leverage off due diligence done by banks

Authen1cate online payments across more than 30 card schemes

Eliminate manual Know Your Customer (KYC) processes

A new iden1ty authen1ca1on system

iSignthis © 2014

Cloud based, patented technology

PATENTS FILED PATENTS GRANTED PATENTS PENDING

Canada Britain

Singapore

India Hong Kong

China

Malaysia

New Zealand

PEP/Sanc1ons Screens:

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Link iden1ty and two factor authen1ca1on (2FA) system used tosecure card payments

Real 1me analy1cs incorpora1ng US, UK, EU, UN, Canadian and Australian official lists to screen for money laundering and fraud

No requirement to ID a customer separately. Government and Private sector applica1ons.

Authen1cate online payments to iden1fy customers & eliminate fraud

iSignthis © 2014 5

Strong Customer Authen1ca1on (SCA):

2 Evidence of Iden1ty (EOI) for KYC/CTF and eID:

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•  EU based payment processors : compliance requirement for AML KYC & /or ECB SecuRE Pay. •  eMerchants in the SEPA/EU28 as part of the ECB’s Strong Customer Authen1ca1on.

•  Stock Brokers •  Financial Advisors/Super Funds •  Financial Systems requiring two factor authen1ca1on technology •  Banks (incl debit, card issuers) •  Commodity/Bullion Brokers/Currency •  Crypto Currency Exchanges (e.g. bitcoin)

•  Real Estate Sales/Rental Agents •  Travel Agents (US Patriot Act) •  Life Insurers •  Accountants/Auditors/Lawyers

•  eWallets/mWallet Providers •  Money remihance services/p2p •  Loan/Pawn Providers •  eCasino/eGaming/eWagering •  Any business rou1nely trading > US $10k/transac1on

Global market with a scalable cloud based business model

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Primary Market

Financial

Professional services

Others

Customer Ease

Lower Cost

iSignthis © 2014

LOCAL

AUTOMATED

MANUAL

�

Disrup1ve technology creates evidence of iden1ty

iSignthis © 2014

Notarised: posted/uploaded documents*

‘Experian’ or ‘Veda’ style sta1c, credit database search (UK, US, AU)

Face to face checks

iSignthis

GLOBAL

•  No dynamic means to include customer on request if not already a historic customer of a credit repor1ng agency. •  Requires cross check of other databases. •  Typical coverage of 60% of online applicants

•  >3Bn accessible global payment instruments. •  No need for user’s disclosure of bank details to a third party.

Lower Fric1on

Remote on boarding

iSignthis © 2014�

Cost of iden1ty authen1ca1on

iSignthis © 2014

LOCAL

AUTOMATED

MANUAL

Notarised: posted/uploaded documents*

‘Experian’ or ‘Veda’ style sta1c, credit database search (UK, US, AU)

Face to face checks

iSignthis

GLOBAL X

X Cf. EXISTING PROCESS •  Notarise Documents (1 hour+$100-‐$200) •  Registered Post Documents ($20-‐$40)

•  Back Office Processing of KYC ($20-‐30)

•  Elapsed Time: 7 -‐ 15 days

iSignthis is GLOBAL •  Cross Border •  Mul1 Jurisdic1onal Compliance •  Automated •  Near Real Time/ Customer Self Service

•  Single Integra1on/Single System

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Creating eKYC and eID

Physical Identification

Proof of Identity Documents

E- Payment Account

(PSD)

Transact on Account &

Verify using KBA

Identifies Person

Collect KYC data & Verify key data

Account is a “Reliable” Source

for EV (AML)

Create E- Identity

Creates further Social Footprint

Sanction Screen + Monitor

(AML) Link to mobile

phone

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Technology

Evidence of Iden1ty Global Card Enrolment


3 step process:

Acquiring side card enrolment: Simple, fast and Universal authen1ca1on


SMS Code PINCode Once off Registra1on>

Real 1me iden1fica1on & registra1on Real 1me Authen1ca1on of Subsequent payments

EOI Real Time Analy1cs : Screening & Repor1ng


SANCTIONED

Issuer Loca1on

OS Language

IIN Data (Standard) Age Verifica1on

PEP & Sanc1ons Lists Screening / repor1ng (UK HM Treasury, EU CSDP, US OFAC, AU DFAT, UN. Op1ons : Interpol, Europol, FBI, DEA MW Lists

Cell Prefix (Standard)

Geoloca1on

Cell Tower Verifica1on

(Op1on)

Address Valida1on

iSignthis Transactional Advantages DNA of a payment message

Payment Data (Merchant, Acquirer, Card Details, Name, Amount, Time, Place, IIN Data + Country of issue)

Authentication + Validation Data (Geodata, device data, SAD, phone

number)

Device Data (MAC, IMEI, CPE, Language, OS)

Network Data : IP Address, Carrier,

Channel, route, Cell Tower

Delivery Data Address, Phone

Under EU law, all of this is PII – identifiable to a person Under US law, taken as a whole, this is also PII – identifies a person.

Transac1on based KYC enrolment: Simple, fast and Universal authen1ca1on


KYC Collec1on Account Verifica1on>

Real 1me iden1fica1on & verifica1on KYC Collec1on and BTC Wallet Nomina1on

•  Collect KYC Data

Acquiring side enrolment: Use elements for 2FA


SMS Code PINCode

Can use phone and passcode as 2FA Mobile Phone Verifica1on


Interfacing Real Time Analy1cs : Screening & Repor1ng

Hosted SaaS

Your Website

Javascript #include+ widget

Authorisa1on / Cer1fica1on

which will render into exis1ng page

We manage en1re process


Issuer implements within internet (or phone) banking

Compliments acquiring side enrolment process

PAN and associated mobile

# are sent to iSignthis via secure XML by issuer.

Home banking card enrolment

Both PayPal and iSignthis rely upon similar legal principles to iden1fy customers. iSignthis and Paypal processes are both patented, with the iSignthis user experience being familiar to any of the 148m Paypal users. iSignthis has modified an adapted the process patented in 2002 by PayPal, to include verifica1on of ownership of a financial instrument in near real 1me (0-‐3 vs 3-‐5 days), with addi1onal benefit of specific transac1on authen1ca1on. iSignthis facilitates online iden>ty much like Paypal facilitates online payments.

Isn’t the iSignthis EOI process familiar…?



EU : Marc Bongers [email protected] +31 624 447 841 Mid East / Asia Pac: Andrew Karantzis [email protected] +61 411 428 259

For further informa>on contact:

Economy & Finance

iSignthis - Know Your Customer - The DNA of a Payment Message