Financial Services Commission (GFSC) has issued annexes to its
handbooks for Financial Services Businesses and Prescribed
Businesses on Countering Financial Crime and Terrorist Financing on
the use of technology in the customer due diligence process.
The changes which have been made to the rules and guidance
provide for the use of technologies such as digital signatures and
electronic verification in the client take-on process and when due
diligence documentation has to be updated, including where this
technology is delivered through the internet or by tablet and
Dominique Carpentier, Director at KYCme
(Guernsey) Limited, said the changes represented an opportunity
for Guernsey to become a recognised leader in the implementation of
'regulatory fintech' to improve efficiencies in dealing
with global regulatory client identification requirements. KYCme is
a secure online storage solution that allows for authenticating and
storing valuable documents.
"This is a milestone in the way that regulated businesses
can on board their clients, as they can now benefit from the speed,
process efficiencies and security that electronic systems can
introduce. Guernsey is the first offshore
jurisdiction to introduce such guidance and the
GFSC should be congratulated in listening to
industry and recognising that regulated businesses can introduce
smart technology whilst continuing to apply the same rigorous
standards the Island has based its reputation on," said Mr
He added that it was also good news for individuals dealing with
businesses that have adopted the technology.
"Gone is the requirement to provided reams and reams of
duplicate and certified paperwork proving your residence and
identity that is associated with opening a new bank account and
moving house. CDD documentation can now be authenticated
once and shared electronically with whoever needs
it as many times as required at the click
of a button."
The annexes to the handbooks encompass new rules stipulating
that a firm must understand this technology if it is to use it and
that it has evaluated that its use will result in compliance with
the relevant regulatory requirements. The revisions to
existing rules are intended to provide positive affirmation that
new technologies have a part in this important process.
The GFSC is not requiring firms to notify it that they intend to
use new technology but it will monitor take up through the
disclosures which firms are asked to make in the annual financial
crime risk return.
The changes also include guidance for firms on the use of online
utility bills to verify the address of Channel Islands
residents. This new section has been issued as an annex to
each handbook which includes amendments to three existing
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