HKMA urges banks to use iAM Smart in remote integration
The HKMA clarifies that when iAM Smart is used for identity verification, record retention requirements can be met by retaining the data obtained through the API.
The Hong Kong Monetary Authority (HKMA) has written to authorized institutions to encourage wider adoption of iAM Smart in remote integration agreements.
iAM Smart was launched in late December to provide Hong Kong residents with a single method of digital identification and authentication to conduct government and business transactions online.
The mobile platform provides biometrics-based authentication, form-filling functionality, personalized notifications and digital signature capabilities – promising to allow iAM Smart users to access more than 110 online government services by mid-2021.
At the time, the HKMA, Securities and Futures Commission (SFC), Insurance Authority (IA), and Mandatory Provident Fund Schemes Authority (MPFA) issued statements encouraging regulated entities to consider adopting iAM Smart in their activities for customer authentication, document signing and remote integration.
In its latest communication, the HKMA points to a circular from February 2019 in which it highlights two key principles – identity authentication and identity matching – in the use of technology for remote integration. , claiming that iAM Smart is an “acceptable technology” to meet the AML / CFT Identity Verification Requirements.
It also highlights the FATF (Financial Action Task Force) standards and the Digital Identity Guide – released in March 2020 – to justify the use of iAM Smart for remote onboarding.
The HKMA also clarified that when iAM Smart is used for identity verification, record retention requirements can be met by retaining the specific data or information obtained through the iAM Smart API – which shows the result of authentication. of the customer and the verified data of the Hong Kong ID card.
“RNs do not need to obtain additional identification documents just for record keeping purposes,” the circular said.
The HKMA also reminds authorized institutions to apply a risk-based approach when conducting customer due diligence (CDD) and that the scope of customer due diligence measures must be proportional to money laundering. money and terrorism.
the financing risks associated with a business relationship.
The HKMA says it will continue to work closely with industry to promote greater use of technology, including remote integration initiatives, to improve the efficiency of CDD processes and improve customer experience.
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