On December 10, 2021, the European Banking Authority (EBA) launched a Consultation Paper on its Draft Guidelines on the use of Remote Customer Onboarding Solutions (the Consultation Paper) that will run until March 10.
These Draft Guidelines set common standards for a robust and safe customer due diligence (CDD) program in line with the anti-money laundering and counter financing of terrorism (AML/CFT) as well as data protection requirements.
With current trends towards digital tools to onboard customers remotely, these guidelines sets expectations in these key areas:
Internal policies and procedures
Acquisition of information identifying the customer / natural persons / legal entities and including the nature and purpose of the business relationship
Document authenticity and integrity, including various collection methods such as optical character recognition (OCR) algorithms or customer devices
Authenticity checks, including expectations for using different verification methods such as biometric or video conferencing and for situations with increased levels of money laundering or terrorist financing risks
Use of digital identities with the goal to reduce risk of impersonation, misuse or alteration of identity
Reliance on third parties and outsourcing
Information and communications technology (ICT) and security and risk management
The finalized Guidelines will apply to all financial institutions subject to the Anti-money Laundering Directive (AMLD).