BDSwiss taps Trulioo for compliant client onboarding

“Before Trulioo, we used multiple providers, which offered minimal coverage in our focus regions or produced low match rates at a high customer acquisition cost.”

BDSwiss has partnered with Trulioo to implement Person Match and Watchlist Screening capabilities across EMEA, Asia, and the Americas.

Trulioo is a renowned KYC solutions provider for brokerage firms looking to speed up their client onboarding processes across the globe. It is backed by 450-plus global and local data sources and is able to check against more than 6,000 global watchlists and 20,000 adverse media sources for continuous monitoring at scale.

“We used multiple providers which offered minimal coverage”

The company will help BDSwiss automate manual verification processes, improve match rates, reduce onboarding costs, and ensure regulatory compliance. According to the announcement, the first phase of implementation delivered an average 25% match rate increase while meeting regulatory requirements across multiple jurisdictions.

BDSwiss is an FX and CFD broker that operates under regulatory authorities such as the Financial Sector Conduct Authority in South Africa, the Financial Services Commission in Mauritius, and the Financial Services Authority in Seychelles.

Mirka Diamantidis, COO at BDSwiss, said: “Before Trulioo, we used multiple providers, which offered minimal coverage in our focus regions or produced low match rates at a high customer acquisition cost. We recognized the need to elevate our customer verification processes to meet growing demands while managing our operational costs. Trulioo stood out as our ideal partner with a commitment to delivering bigger regional coverage, higher match rates, 24/7 implementation support and verification expertise in markets across the globe. This partnership underscores BDSwiss’s commitment to innovation and operational excellence, ensuring we continue to provide top-tier services to our clients.”

Steve Munford, Chief Executive Officer Trulioo, commented: “BDSwiss’s unique global footprint presents distinct challenges and opportunities and Trulioo is exceptionally well-suited to support their international growth. Our platform is inherently global, and we excel in helping our customers build efficient onboarding journeys in both large and emerging, challenging markets. Together, we’re driving seamless, compliant expansion across diverse regions.”

BDSwiss used to onboard UK and EU customers to offshore entities

Leveraging Trulioo’s KYC capabilities might help BDSwiss become more compliant with its client onboarding. The FX/CFD broker was banned from the UK in 2021. According to the FCA, BDSwiss Group played up the fact that one of its firms was regulated in the UK to “convey legitimacy on the group as a whole.” The FCA investigation found that 99% of BDSwiss’ UK consumers were actually onboarded to the group’s entities regulated elsewhere.

The watchdog highlighted its concerns over financial promotions that falsely implied that all of the firm’s activities were regulated by the FCA, when in fact they were not. In particular, the overseas firms did not comply with the FCA’s restrictions on the marketing and sale of CFDs to retail consumers.

In 2023, the Cyprus Securities and Exchange Commission (CySEC) imposed an administrative fine of €100,000 on BDSwiss Holding Ltd on similar grounds: BDSwiss enabled offshore companies with which it was associated, to refer to the CIF’s status, as a Cyprus Investment Firm, to attract clients to whom they offered investment services in CFDs. That was without requiring customers to pay initial margin protection and not giving the necessary risk warning, as it would have to, if the provider was the CIF, avoiding the application of the statutory requirement. In other words, BDSwiss was found to have misled clients by onboarding them on the basis of being regulated by CySEC, while in fact, the CFD broker redirected them to unregulated offshore companies.