How remote identification and verification of bank customers will now work
The National Bank of Ukraine has changed approaches for remote identification and verification of bank customers. As stated by Igor Bereza, director of the NBU Financial Monitoring Department, to open an account at a new bank, a visit to a bank branch or an in-person meeting with an agent of a financial institution will not be required.
On 28 April, the “Law on Prevention and Prohibition for the Validation of Criminally Obtained Results” will come into force, which will allow banks to identify and verify without the customer’s personal presence. For these purposes, regulators and participants in the financial market have developed new tools and methods for remote identification.
Banks will be able to independently select the verification model, which includes:
1. Full-fledged model of remote identification and verification, on which limits will not be set:
- Through NBU BankID system and Qualified Electronic Signature (CEP)
- Via video recognition
2. Simplified model in which there are some limitations on the amount of operations and balances on the customer’s accounts:
- Verification using BankID NBU system
- CEP Verification
- Paying in a separate bank account from the customer’s personal account with at least the customer’s name
- Remote reading by the customer of data from the chip of his biometric document (eg, passport or ID-card) using the smartphone’s NFC module and the bank’s corresponding mobile application
- Verification of data from the credit bureaus with the confirmation of the customer through the password received from the bank on the customer’s financial phone number indicated in their credit history
The National Bank stated that while using some simplified mechanisms, it would be necessary to use the person’s reality recognition method (Lean Detection), along with the identity document of the customer’s photo ID.
National Bank was also established Indicated range for simplified models Customer Verification:
- The normal limit for spending financial transactions on all accounts opened by customers in the bank is not more than 40 thousand per month and 400 thousand per year.
- Total balance on all open customer accounts and electronic wallets in the bank – not more than 40 thousand UAH
To identify the users of the electronic purse, the bank has to obtain customer copies of the identity documents and photo capture of the customer along with its identity documents.
National Bank said that it is currently developing regulation of identity and verification for the non-banking financial market.
Earlier we had written about how to get electronic digital signature through Privat24.
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