Fourthline, a regtech that provides KYC and AML solutions, has raised €50m from new and existing investors.
The funding will be used to further its AI-powered technology as it aims to “transform” financial compliance for banks, financial institutions and fintechs across Europe.
Radbound Vlaar, managing partner of Finch Capital, increased his stake in this round after having led Fourthline’s previous round.
The Fourthline platform provides a “complete suite” of proprietary tech products that adhere to local KYC, AML and GDPR requirements in “Europe and beyond”.
It provides customers with a single solution for “lifetime” financial compliance, from onboarding to continuous KYC.
Launched in 2018, Fourthline, headquartered in the Netherlands, works with fintechs such as N26, and financial institutions like Western Union.
Krik Gunning, co-founder and chief executive officer of Fourthline, noted that “approximately €1.8t are laundered every year”.
On financial crime, Gunning said: “The huge leaps forward in technology over the last decade have been a double-edged sword.
“While consumers benefit from easier and quicker access to banking products, the nefarious actors have leveraged technologies such as deepfakes and social engineering such as money mules to increase the sophistication of their fraudulence.
“In order to hold back the tide of financial crime, a raft of KYC, AML and anti-fraud technologies have been developed.
“Simultaneously, legislators have tried to keep up, which has increased the regulatory burden on companies.”
Vlaar commented: “We’re big believers in tackling the compliance challenges in this industry through a focused growth strategy leveraging a platform approach using proprietary technology.”
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