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Reflecting on an Extraordinary 2024 at SQR

As 2024 comes to a close, we’re reflecting on a truly extraordinary year filled with milestones, innovation, and growth. This year has been a testament to the hard work of our team and the incredible partnerships that have propelled us forward.
Team collaboration and networking event highlights

We’re immensely proud of what we’ve achieved and deeply grateful for the support of our customers, partners, and everyone who has journeyed with us. This support fuels our mission to make the world safer through secure, efficient, and inclusive identity verification.

We’d like to share some of the key moments which defined our year:

Secured a 5-Year Contract with the Isle of Man Government’s Central Registry: Being selected to provide an independent identity verification solution for the Government’s Central Registry was a huge achievement for SQR. Our application, approved and certified on the UK Government’s Digital Identity and Trust Framework (DIATF), will be used to seamlessly verify the identity of beneficial owners in the Isle of Man, as well as enhance security and efficiency for the Central Registry. By validating data, we offer assurance that beneficial owners are accurately verified and who they say they are.

SQR Acquisition by SQRx Ltd.: This strategic acquisition, backed by significant investment, is a pivotal milestone for SQR. It accelerates our growth, unlocks new opportunities for innovation, and strengthens our position as a leader in the digital identity and secure access space. This move fuels our ambitious growth strategy and enhances our ability to make an even greater impact in the industry.

Selected for the CyberBoost Catalyse Programme and Attended Singapore International Cyber Week: In September we were selected for the CyberBoost Catalyse Programme, supported by the Cyber Security Agency of Singapore (CSA) and delivered by Plexal. This programme offers a unique opportunity for startups and scaleups like ours to accelerate growth and make a tangible impact by collaborating with global cybersecurity leaders. Participating in the CyberBoost Catalyse Programme further allowed us the incredible opportunity to showcase our expertise on the global stage at the Singapore International Cyber Week in October. Our strategy aligns with Singapore’s position as a regional regulatory influence and springboard for ASEAN markets, which solidifies our presence for broader regional and international expansion. 

Supported techUK’s Unlocking Digital ID Campaign Week: As part of techUK’s campaign, we advanced important conversations around secure and inclusive digital identity, advocating for solutions that promote trust and accessibility.

SQR and Sight Matters Accessibility Pilot: SQR in collaboration with Sight Matters, a charity dedicated to supporting blind and visually impaired individuals, proudly piloted an accessibility initiative to address real life pain points. This partnership underscores our shared commitment to ensuring digital identity systems work seamlessly for everyone, regardless of ability. Many digital platforms remain riddled with barriers, as much of the internet was not initially designed with accessibility in mind. Through this pilot, we tackled real-world critical usability challenges, aiming to deliver targeted and meaningful design improvements. Together, SQR and Sight Matters are demonstrating the power of collaboration in driving digital accessibility and fostering a more inclusive online space.

Completed the Cyber Runway Ignite Programme: Supported by the Department for Science, Innovation and Technology (DSIT), this programme equipped us with world-class mentorship, tools, and strategies to drive our growth, and scale our impact. Being one of only six startups selected for Plexal Cyber’s prestigious programme, supported by the Centre for Secure Information Technologies (CSIT) and Deloitte, was an incredible opportunity to strengthen our position as a leader in the digital identity space. 

Hosted a Digital Transformation Event: We‘re also proud to have collaborated with Manx Telecom Group, PDMS, and Eyesea to host a dynamic digital transformation event. Sponsored by Manx Telecom Group, the event highlighted real-world case studies showcasing the transformative power of technology to elevate businesses. Attendees joined us for engaging discussions on key topics such as digital inclusion, creating efficiencies, and curating an environment for transformation. This event exemplified the value of collaboration in driving progress and shaping a more innovative, inclusive future.

Contributing to Digital Greenhouse Guernsey’s Innovation Summit: Representing SQR, Shelley Langan-Newton attended the Innovation Summit in Guernsey, where she presented a talk titled “Unleashing the Power of Data: Innovation in Digital Identity.” Her presentation highlighted the pivotal role of secure data sharing in revolutionising authentication, personalisation, and security within digital identity, emphasising the importance of responsible data governance and collaborative ecosystems. Our participation underscored SQR’s thought leadership and dedication to driving meaningful advancements in the evolving digital identity landscape.

Looking Ahead to 2025

As we close out 2024, we’re incredibly excited for what 2025 holds. We have some exciting projects in the pipeline, and we can’t wait to share more with you in the coming months. Stay tuned to our LinkedIn page for updates and insights as we continue our mission to make the world safer through secure, efficient, and inclusive identity verification.

If you’d like to learn more about our services, we invite you to book some time with our Head of Strategic Partnerships, Steven Webster. Let’s work together to create a more secure digital future.

Thank you for an amazing 2024 – we couldn’t do it without you. 

Here’s to an even more remarkable 2025!

In this case study, we explore how digital identity verification can successfully address key challenges, demonstrating its impact in transforming public sector processes.

Solving Public Sector Pain Points: 

The need for independent validation of corporate ownership data has never been more pressing. As countries around the world intensify efforts to combat money laundering, tax evasion and financial crimes, understanding Ultimate Beneficial Ownership (UBO) has become a key global priority. Findings by the International Financial Accountability, Transparency and Integrity (FACTI Panel) estimates;

  • $500 billion losses to governments each year from profit-shifting enterprises;
  • $7 trillion in private wealth hidden in haven countries, with 10% of world GDP held offshore;
  • Money laundering of around $1.6 trillion per year, or 2.7% of global GDP.

One of the most effective tools in this battle is the beneficial ownership registry, but ensuring the accuracy and integrity of the information held within often presents a challenge. Certified digital identity solutions could provide the answer. 

What is a Beneficial Ownership Registry?

A beneficial ownership registry is a database that records the individuals who have significant control over, or who stand to benefit from, a legal entity such as a company or trust. The goal is to bring transparency to the ownership structure of companies, making it harder for criminals to hide behind complex corporate arrangements.

According to the Financial Action Task Force (FATF), the global authority on anti-money laundering and combating the financing of terrorism, a UBO is “the natural person(s) who ultimately owns or controls a customer or the natural person on whose behalf a transaction is being conducted.” This definition extends to those who exercise ultimate control over a legal entity, typically individuals who directly or indirectly own more than 25% of a company’s shares or voting rights.

The Challenges of UBO Disclosure

Identifying UBOs is not always straightforward. Ownership can be deliberately obscured through layered holding structures, spread across multiple jurisdictions with differing disclosure rules. This creates a significant challenge for authorities and regulators trying to track the real beneficiaries of a company. The International Monetary Fund (IMF) emphasised this critical risk in their 2022 whitepaper ‘A guide to Beneficial Ownership Transparency’, noting that countries should have mechanisms to ensure the accuracy of the data submitted.

FATF defines accuracy in the context of beneficial ownership information as having been “verified to confirm its accuracy by checking the identity and status of the beneficial owner using reliable, independently sourced or obtained documents, data, or information.” Given the complexities involved, independent validation of beneficial ownership data is critical. Without robust mechanisms, beneficial ownership registries run the risk of being inaccurate or incomplete, which leaves the system vulnerable to financial crime.

A Leading Example

One country that has made significant strides in beneficial ownership verification is Denmark. The Danish system integrates digital identity tools such as ‘MitID’ – a government-issued digital ID – with its beneficial ownership registry. MitID connects to an individual’s civil registration number, as well as their address in the Danish Address Register, enabling authorities to automatically cross-check all of the information submitted against trusted databases. This reduces the risk of both unintentional errors and fraud, ensuring a higher level of data accuracy.

However, while Denmark’s approach provides a model initiative in respect of the country’s resident beneficial owners, it does have limitations. Non-residents are ineligible for a MitID, necessitating an additional identity verification process for this group of beneficial owners. This adds complexity and relies on more traditional, less streamlined methods. 

Fostering an Inclusive Cross-Border Approach

Countries and jurisdictions without government-issued digital identity systems, or with foreign national UBOs, are increasingly turning to private sector digital identity solutions to validate their data. It is crucial however, that only digital identity providers certified to a recognised government standard – such as DIATF in the UK or eIDAS in the EU – are onboarded. This ensures that the verification process meets stringent regulatory and security benchmarks, providing a high level of trust and reliability. Find out how SQR’s certified digital identity solution is being leveraged in this way here.

This type of collaboration between public and private sectors fosters the creation of innovative, tailored solutions that meet the unique needs of each jurisdiction while also leveraging the advantages of reusability. For instance, individuals with a certified digital identity from an approved provider can seamlessly share their pre-verified identity information with the relevant authorities. This approach not only streamlines the verification process but also ensures adherence to stringent government standards, significantly mitigating the risk of fraud and enhancing the integrity of beneficial ownership data.

The Future of UBO Verification

Countries and jurisdictions without government-issued digital identity systems, or with foreign national UBOs, are increasingly turning to private sector digital identity solutions to validate their data. It is crucial however, that only digital identity providers certified to a recognised government standard – such as DIATF in the UK or eIDAS in the EU – are onboarded. This ensures that the verification process meets stringent regulatory and security benchmarks, providing a high level of trust and reliability. Find out how SQR’s certified digital identity solution is being leveraged in this way here.

The use of independent digital identity systems represents a crucial step forward in improving the accuracy and security of beneficial ownership databases. By fostering collaboration between governments and the private sector, countries can implement innovative, scalable solutions that address the growing demands of the global regulatory environment. Ultimately, these advances will empower authorities to better tackle financial crime, increase public trust, and enhance the integrity of beneficial ownership data worldwide.

A secure, efficient and inclusive digital identity system offers a wide range of benefits. By adopting certified digital identity solutions, governments and organisations can streamline operations, build public trust, and create a more secure and transparent digital ecosystem. 

The benefits of secure, efficient and inclusive digital identity

A certified digital identity solution provides a reliable and verifiable source of information, minimising errors often associated with manual verification processes. This is particularly crucial for company beneficial ownership data, where accuracy is paramount to ensure transparency and accountability. By verifying the legitimacy of ownership, digital identity systems ensure that only authorised individuals can access sensitive information or claim beneficial ownership. This significantly reduces fraudulent activity, protecting both individuals and organisations.

Governments around the world face stringent regulatory requirements for transparency, anti-money laundering (AML) and combating the financing of terrorism (CFT). Certified digital verification identity solutions also help meet regulatory obligations, by providing a secure and trusted method for verifying beneficial owners. Automating and standardising the identity verification process further ensures that organisations are compliant with complex regulations, whilst also reducing the risk of non-compliance penalties.

Managing large datasets manually is time-consuming and prone to errors. Thus, automating and streamlining data management and digital identity verification processes reduces administrative burdens and improves operational efficiency. This more accurate processing of ownership and identity data, in turn leads to better decision-making and resource allocation for governments and businesses. With a certified digital identity system, sensitive data related to ownership is better protected against breaches, thanks to robust encryption and authentication processes. These enhanced security measures ensure that sensitive information remains protected, and helps to maintain the integrity of ownership records.

In an increasingly interconnected world, the ability to verify identities across borders is essential for multinational organisations and cross-border transactions. Certified digital identity solutions have the ability to integrate with international databases, ensuring consistency and reliability in identity verification on a global scale. It further plays a key role in enhancing global interoperability, as they enable integration with international databases. This is crucial for verifying identities consistently across borders, supporting multinational entities and cross-border transactions.

Additionally, governments that utilise certified digital identity verification systems can strengthen public confidence by demonstrating their commitment to transparency and safeguarding ownership data integrity. Furthermore, collaboration between governments and certified identity verification service providers fosters innovation. By partnering with cybertech firms, governments leverage advanced technology to develop scalable, compliant, and secure solutions for managing beneficial ownership databases.

This synergy benefits both parties, allowing governments to implement modern solutions while enabling tech firms to design systems aligned with regulatory needs.

Rebecca Glassey, Product & Operations Manager at SQR:

“Certified digital identity solutions are the cornerstone of secure, accurate data management in the modern era. By collaborating closely with government entities, we ensure that our technology not only meets the highest regulatory standards but also delivers the scalability and security that public systems demand. It’s all about providing a seamless and trusted verification process, while reducing the risk of fraud and errors in critical government datasets like beneficial ownership registers.”

Steven Webster, Head of Strategic Partnerships at SQR:

“Our work with government agencies highlights the immense value of public-private collaboration in tackling complex challenges such as identity verification. By partnering with certified Identity Service Providers, governments can adopt cutting-edge technology that ensures transparency and security in managing beneficial ownership data. This level of cooperation fosters innovation and enables both parties to create solutions that are not only efficient but also adaptable to the evolving regulatory landscape.”

For more details on how SQR’s certified digital identity solution is being implemented in collaboration with governments, refer to this SQR article.

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