Veriff
Blog

EU banking regulator set to strengthen remote onboarding checks

Allied to this, remote onboarding is a central pillar of the EU’s 2020 digital finance strategy. Due to this, a unified regulatory approach is needed to provide clarity and consistency about what is, and what is not, allowed in a remote and digital context within the union.

March 8th, 2022

Share

Share

Love this blog? Why not share it with the world?

Last month, the European Banking Authority (EBA) announced plans to strengthen the anti-money laundering (AML) checks required for remote customer onboarding processes.

While launching a public consultation on new draft guidelines, the EBA announced a raft of new measures that aim to tackle apparent inconsistencies across EU countries. These particularly relate to checks conducted by financial institutions.

Over the past couple of years, remote services have become the norm for many EU customers. This is due to advances in technology and a growing demand for virtual services.

Allied to this, remote onboarding is a central pillar of the EU’s 2020 digital finance strategy. Due to this, a unified regulatory approach is needed to provide clarity and consistency about what is, and what is not, allowed in a remote and digital context within the union.

What do the new EBA guidelines say?

The new EBA guidelines outline a common process that firms across the EU should adopt in order to ensure that their customer onboarding processes meet due diligence obligations.

In addition to this, the EBA has also stressed that firms must understand the capabilities of new remote onboarding solutions. By understanding the technologies, the EBA believes that firms from across the union can support the responsible use of these technologies and ensure they’re aware of any money laundering risks that may arise. Firms can then also take steps to mitigate these risks effectively.

When will the new guidelines come into force?

At present, the EBA has launched a consultation on the new guidelines. This will run until March 10, 2022. A public hearing will also be held on February 24, 2022.

In the ‘overview of questions for consultation’ section of the guidelines, questions about the proposal highlight the acquisition of information, document authenticity, and integrity, digital identities, reliance on third parties, outsourcing, ICT, and security risk management.

Once the new guidelines are adopted, the standards will apply to all financial sector operators that are within the scope of the EU’s Anti-Money Laundering Directives (AMLD).

Ensure onboarding and KYC compliance with Veriff

With our customer onboarding tool, you can show regulators that you take financial crime seriously. Our tool will help ensure that you always know your customers. Plus, it will help you onboard more customers by making the process seamless from start to finish.

Talk to us today to learn how our new account onboarding tool could help your business.

Stay up to date on Veriff news, product updates, and more

Veriff will only use the information you provide to share blog updates. You can unsubscribe any time. For more details, check out our privacy policy.

Related articles

What is enhanced due diligence (EDD) in banking?

Blog

What is enhanced due diligence (EDD) in banking?

EDD in banking involves gathering information in order to verify the identity of customers and calculate the exact level of money laundering risk each customer poses. During the EDD process, the customer is asked for a much greater amount of information than they are during the CDD process, as this information can be used to mitigate the risks involved.

What is due diligence in finance?

Blog

What is due diligence in finance?

When carrying out due diligence, a financial institution must determine whether they should perform customer due diligence (CDD) or enhanced due diligence (EDD). This is because FATF guidance suggests that companies should adopt a risk-based approach to due diligence that reflects the specific level of risk that each individual customer presents.

What is synthetic identity theft?

Blog

What is synthetic identity theft?

Synthetic fraud is incredibly dangerous and is a major problem facing the financial sector. Unlike third-party fraud, where an entire identity is stolen and used to defraud enterprises and victims, synthetic fraud frequently has no specific consumer victim.