CYFA #05/2022 – Announcement – EBA Remote Customer Onboarding solutions

CYFA would like to inform its members that the European Banking Authority (EBA) launched a public consultation on its draft Guidelines on the use of remote customer onboarding solutions. These Guidelines set out a common understanding by competent authorities of the steps financial sector operators should take to ensure safe and effective remote customer onboarding practices in line with applicable anti-money laundering and countering the financing of terrorism (AML/CFT) legislation and the EU’s data protection framework. Once adopted, these Guidelines will apply to all financial sector operators that are within the scope of the Anti-money Laundering Directive (AMLD).

According to the EBA, financial institutions have seen a growing demand for remote customer onboarding solutions. This trend was exacerbated by restrictions on movement caused by the COVID-19 pandemic. As a result, the EBA considers it important for competent authorities and financial sector operators to understand the capabilities of these new remote solutions to make the most of the opportunities they offer, and at the same time, to support their sound and responsible use, as well as to be aware of ML/TF risks arising from the use of such tools and taking steps to mitigate those risks effectively. These draft Guidelines set common EU standards on the development and implementation of sound, risk-sensitive initial customer due diligence (CDD) policies and processes in the remote customer onboarding context. They set out the steps financial institutions should take when choosing remote customer onboarding tools and when assessing the adequacy and reliability of such tools, to comply effectively with their AML/CFT obligations.

This consultation runs until 10 March 2022. CYFA would like to inform its members that the Association has initiated its procedures to submit relevant responses. In addition, Association representatives shall attend the online public hearing on the draft Guidelines that shall take place on the 24th February 2022.