Chex Systems, a subsidiary of electronic payments company eFunds, is to release IDefend, a screening solution to help financial firms prevent fraud and comply with Section 326 of the USA Patriot Act.
Section 326 of the USA Patriot Act requires financial services companies to verify the identities of any person seeking to open an account, maintain records of the information used and screen the applicant against lists of known or suspected terrorists.
The IDefend service, which is expected to become available in late October, verifies the identities of customers applying for loans, credit cards and accounts by cross checking and validating personal information such as social security numbers, address details and driver's licence numbers.
The service also provides screening of applicants against government terrorist lists, including the Office of Foreign Assets Control (OFAC).
Lisa Nelson, vice president, risk management, eFunds, says: "The IDefend service shores up an institution's defences even more, protecting it against increasingly sophisticated criminals."
The US Treasury Department states that final rules implementing Section 326 must be effective by 25 Oct 2002.