Taiwan Financial Firms Call for KYC Rule Changes

Source: Regulation Asia Editors, Regulation Asia 2020-07-06

Taiwanese financial firms are asking the FSC to allow for identity authentication methods other than the unwieldy government-issued Citizen Digital Certificates.

Taiwanese financial firms are reportedly calling on the FSC (Financial Supervisory Commission) to relax its rules in relation to customer identity authentication, KYC data sharing and fintech sandbox trials.

At a recent meeting with FSC Chairman Thomas Huang, local financial firms urged the commission to allow them to adopt a more effective method of identity verification than Citizen Digital Certificates, a government-issued ID card that requires a card reader for individuals to in online activities.

The banks asked the FSC to allow the use of one-time passwords for online transactions instead and to allow them to cooperate with electronic payment companies on authentication – highlighting the inconvenience of requiring customers to have a card reader, and the fact that mobile banking apps are unable to read the cards.

Other financial firms also asked the FSC to allow for KYC data-sharing between institutions in a way that protects personal information, or to establish a consumer data platform through which they can access KYC information and conduct their own checks.

In relation to the fintech sandbox, financial firms are asking the FSC to adjust its policies on the sharing of responsibility for accidents or frauds that could occur during testing.

Currently, financial firms must take full responsibility, preventing them from participating in sandbox trials. The FSC should allow for responsibility to be shared by financial and non-financial firms based on the size of their businesses, one bank executive said.

台湾金融监督委员会

Taiwan Financial Firms Call for KYC Rule Changes

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