Customer due diligence obligations in line with relevant Anti Money laundering and CFT acts will need to be harnessed within the development of online identity verification.
Various advantages and disadvantages within this verification methodology and related risks need to be well addressed, with relevant technological up gradation, and thus reducing burden.
Considering advancement in online service delivery, digital identities are favored over physical credentials, which is of greater significance when it comes to customer due diligence. Such designated services are now rendered by multiple approved/authorized institutions who specialize in that space.
But, would that be sufficient enough to keep pace with identity theft/cyber-crime, and by taking into account privacy considerations? May not be, and this where diligent compliance officers requirement becomes a mandatory requirement.
Central to this discussion is adoption of appropriate policies, proceduresand controls to reduce the likelihood of the organization being abused with respect to money laundering and terrorist financing.
Adhering to reporting obligations, intelligence value of transaction reports, thresholds and cross border movements will need to be closely monitored to accomplish success.
Many varying questions over issues, constraints and limitations over transaction reporting obligations have to be pondered through.
Matter over privacy protections and sensitive information should be gathered, reported, retained and shared with reporting entities while safeguarding record keeping requirements, without losing focus on international cooperation.
New product development and execution teams will need to be cognizant of these facts with respect to regulatory obligations, particularly while dealing with online solutions, which of course is going to be the future of payments systems.
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