2 July 2020 – Bank Negara Malaysia has released a policy document on Electronic Know-Your-Customer (e-KYC). The policy document aims to accelerate and streamline practices of industry players in their adoption of e-KYC technology, the online process of identifying and verifying individual customers. The policy comes into effect starting from 30 June 2020 onward.
The digitalisation of identification and verification processes is an important enabler to increase the convenience and reach, as well as lower the costs of financial services. A key aspect of digitalisation entails the delivery of end-to-end financial solutions through online and mobile channels, supported by the adoption of financial technology.
BNM expects the outcome of e-KYC technology adoption in the financial sector to include uncompromised accuracy in customer identification and verification, along with an ongoing assessment of the robustness of the technology application. Thus the policy has sets out the minimum requirements and standards that a financial institution must observe in implementing e-KYC for the identification and verification of individuals.
To know more about BNM’s e-KYC policy, you can download it here.