Electronic Know-Your-Customer (e-KYC)

Supported by further technological advancements and Introduction of electronic Know-Your-Customer (e-KYC) solutions for the financial sector, digitalisation of the customer identification and verification processes has become an increasingly prominent enabler in the onboarding process for financial services.

Growing adoption and understanding of e-KYC solutions in the financial sector call for enhancements to existing requirements to ensure e-KYC solutions continue to remain relevant, robust and reliable. This includes expanding the scope of e-KYC applications to cover both individuals and legal persons, providing guidance on e-KYC solutions that can cater to the unbanked, while ensuring uncompromised accuracy in customer identification and verification.

This document sets out the minimum requirements and standards that a financial institution, as defined in paragraph 5.2, must observe in implementing e-KYC for the on-boarding of individuals and legal persons. The requirements outlined in this policy document are aimed at –
(i) Enabling safe and secure application of e-KYC technology in the financial sector;
(ii) Facilitating Bank Negara Malaysia’s (the Bank’s) continued ability to carry out effective supervisory oversight of financial institutions; and
(iii) Ensuring effective anti-money laundering, countering financing of terrorism and countering proliferation financing (AML/CFT/CPF) control measures.

This document belongs to Bank Negara Malaysia (BNM). Full access to the original source is available here: https://www.bnm.gov.my/banking-islamic-banking