The requi­re­ment to per­form reve­ri­fi­ca­ti­on in every case without being able to reu­se an initi­al veri­fi­ca­ti­on incre­a­ses the admi­nis­tra­ti­ve bur­den on obli­ged enti­ties and con­su­mers ali­ke. The basic need for inno­va­ti­ve KYC pro­cess solu­ti­ons at Euro­pean level is, in fact, ack­now­led­ged. This is under­li­ned, for examp­le, by the ‘Opi­ni­on on the use of inno­va­ti­ve solu­ti­ons by credit and finan­cial insti­tu­ti­ons in the cus­to­mer due dili­gence pro­cess’, publis­hed by the Euro­pean Super­vi­so­ry Aut­ho­ri­ties (ESAs) on 23 Janu­a­ry 2018. The ESAs’ right approach does not go far enough, though. Par­ti­cu­lar­ly the reusa­bi­li­ty of KYC pro­ces­ses is not yet on the ESAs’ agen­da. Pro­gres­sing the right approach towards the reusa­bi­li­ty of initi­al veri­fi­ca­ti­on is, howe­ver, equal­ly important in order to fur­ther streng­t­hen both the EU as a busi­ness loca­ti­on in inter­na­tio­nal com­pe­ti­ti­on and pan-Euro­pean con­su­mer protection.

In this posi­ti­on paper, draf­ted joint­ly by banks and fin­techs, the Asso­cia­ti­on of Ger­man Banks wis­hes to draw atten­ti­on to the exis­ting chal­len­ges and pro­po­se regu­la­to­ry solutions.

Quel­le /​ Link: Know your Cus­to­mer: Retail cus­to­mer veri­fi­ca­ti­on in the Sin­gle Market

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