Having issued a policy document earlier in 2019, Bank Negara Malaysia has now released a draft for how the rules around electronic know your customer (KYC) could look like in the future in the country.
The Malaysian central bank’s draft outlines what the potential minimum requirements and standards money changers must meet to comply with the rules could be.
For instance, in order to be approved to establish customer relationships without meeting face to face and only relying on electronic means, the draft suggests that remittance companies must first apply to the bank. This application could include relevant information to demonstrate the reporting institution’s ability to comply with the regulations. It also outlines how the ongoing implementation of electronic KYC would look like for companies.
It also outlines what transfer companies must do to verify a customer’s identity during the onboarding process. This could include video calls, communicating at a verified office or residential address, verifying the client against a database maintained by relevant authorities and requests to see things like bills and student identification.
Feedback on the draft guidelines must be submitted by Sunday September 8 2019.
The guidelines are part of the bank’s efforts to promote the digitalization of money services businesses, thus hopefully introducing more competitive and convenient solutions. Once approved, Bank Negara Malaysia also hopes that the new rules will help counteract money laundering and the financing of terrorism.
Copyright © 2018 RegTech Analyst
