AMF reveals digital ID and e-KYC guidelines

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: