AMF reveals digital ID and e-KYC guidelines

Wednesday 29 April 2020 13:12 CET | News

The Arab Monetary Fund, AMF, has announced the publication of Digital Identity and e-KYC Guidelines for the Arab Region issued by the Arab Regional Fintech Working Group. 


The aim of the document is to contribute to the existing dialogue at the regional and global levels on the importance of digital identity, electronic KYC, and customer due diligence (CDD), and their impact on financial inclusion and the further steps going forward. The ongoing digitalisation of the economy represents a major challenge that requires a balance between remote and digital onboarding for clients and ensuring compliance with regulations aimed at tackling money laundering and the financing of terrorism, AML/CFT regulations. 

In the financial services domain, absence of a valid and officially authenticated identification renders inaccessibility to the basic facilities like loans, bank accounts, ATMs etc. With increasing digitisation, national governments must focus on implementing digitally enabled identification systems that can facilitate individual’s access to financial services and more holistic representation in the digital world. Moreover, by digitising processes through KYC utilities, the time required for identity checks and verification can be shorten, CDD compliance costs can be reduced, and potentially the quality and reliability of customer data will be improved.

Aiming to understand the development of digital ID and e-KYC programmes among the Arab countries, a questionnaire was circulated to the Regulatory and Supervisory authorities in the Arab Countries. Based on the findings of the survey, some of the action items proposed to Arab Countries are: 

  • Establishment of a unique, legal, interoperable, digital ID with an ‘identity first’ focus that collects minimal information for creation of an identity;
  • Support the digital ID framework by adoption of policies, rules, and regulations addressing the risks or concerns associated with the use of digital ID;
  • Establish a ‘risk-based’ CDD regime which balances between the AML/CFT objective and financial inclusion objectives;
  • Create benchmarks and standards for use of any ‘non-government’ backed identity systems;
  • Implement a strong governance model to manage the digital ID and CDD regime;
  • Provide regulatory clarity, remove barriers, and foster enabling regulatory environment for innovation which may provide newer solutions for CDD;
  • Formulate transnational frameworks for interoperability and levels of assurance being implemented across Arab countries.

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Keywords: AMF, launch, digital ID, e-KYC, for the Arab Region, the Arab Monetary Fund, onboarding, compliance, AML, financial services, loans, bank accounts, ATMs
Categories: Fraud & Financial Crime
Countries: Middle East
This article is part of category

Fraud & Financial Crime