European Banking Authority Consults on New Draft Guidelines on the Use of Remote Customer Onboarding Solutions

The European Banking Authority (EBA) has launched a public consultation on its Draft Guidelines on the use of Remote Customer Onboarding Solutions (the Guidelines) recently.

The Guidelines was rolled out in the context of financial institutions having seen a growing demand for remote customer onboarding solutions, which was exacerbated by restrictions on movement caused by the COVID-19 pandemic. EBA explained that therefore, it is important for financial sector operators to understand the capabilities of these new remote solutions in order to:

• make the most of the opportunities they offer

• support their sound and responsible use

• ​be aware of ML/TF risks arising from the use of such tools and take 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 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, in order to comply effectively with their AML/CFT obligations.

The consultation period will last till 10 March 2022.

Shortly before, Fazzaco reported that CySEC expected to inform all relevant Regulated Entities on the results of the National Risk Assessment ​(NRA) on Money Laundering and Terrorist Financing risks of Virtual Assets Activities and Virtual Asset Service Providers, which was published by the Ministry of Finance of the Republic of Cyprus.