The European Banking Authority (EBA) at present printed its remaining Pointers on the usage of distant buyer onboarding options.
These Pointers set up widespread EU requirements on the event and implementation of sound, risk-sensitive preliminary buyer due diligence insurance policies and processes within the distant buyer onboarding context. They set out the steps monetary establishments ought to take when selecting distant buyer onboarding instruments and when assessing the adequacy and reliability of such instruments, with a purpose to comply successfully with their AML/CFT obligations. The Pointers are technologically impartial and don’t prioritise the usage of one software over one other.
Authorized foundation and background
These Pointers have been developed in response to the European Fee’s request within the context of its Digital Finance Technique, printed in 2020. They’re additionally in keeping with the EBA’s authorized mandate to steer, coordinate and monitor the EU monetary sector’s battle in opposition to cash laundering and terrorism financing (ML/TF).
The Anti-money Laundering Directive units out what monetary establishments ought to do to adjust to their AML/CFT obligations nevertheless it doesn’t set out intimately what’s, and what’s not, allowed in a distant and digital context, when onboarding new prospects. This has created dangers the place regulatory expectations of credit score and monetary establishments’ distant onboarding practices have been unclear. It has additionally made the uptake of latest or progressive types of buyer identification by credit score and monetary establishments harder. These dangers and challenges have been amplified by growing demand for non-face-to-face buyer take-on choices throughout the Covid-19 pandemic.