Don't miss out on meeting the latest regulations for CDD

As per the recent AML-CFT Act of Parliament, the UAE has introduced new regulations regarding digital ID for Customer Due Diligence (CDD). Idenfo Direct is a Digital ID platform that covers all compliance and CDD requirements within the UAE. Outlined below is a summary on the guidance by the UAE government, and what that means for your business.

What do the new regulations mean?

In line with the UAE’s efforts to digitize and streamline its financial sector, the Central Bank has mandated the use of digital IDs for CDD purposes. This will help to improve the efficiency and accuracy of identity verification processes, while also reducing the risk of financial crimes such as money laundering and terrorist financing.

The new regulations outline certain requirements that Digital ID platforms for CDD (like Idenfo Direct) must check in order to be sufficient for compliance with the AML-CFT Act, and in order to effectively fight illegal financial activities.

 

The CDD process is meant to start with effective and efficient collection of documents; where the documents are checked digitally to ensure they belong to a single person. This is followed by validation, which is a check to ensure that the documents are genuine and legitimate as well as checking the documents against an authoritative source. Next, the verification process is carried out using facial recognition and liveness detection to ensure that the individual that is applying to be verified is the same person as in the documents Once these steps are completed, the individual cen be onboarded.

If your current system, whether digital or not, cannot carry out the above processes to check individuals before onboarding them, you are at risk of being penalized for non-compliance, as well as putting your customers at risk. 

Compliance

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Why it’s important to comply with the new regulations

It is important for businesses to comply with the new regulations set out by the UAE government on CDD and digital ID systems for several reasons:
  • Legal Compliance
    By complying with the regulations, businesses will ensure they are operating within the legal framework set out by the UAE government and avoid any potential legal penalties or consequences.
  • Protecting Against Financial Crimes
    The use of digital ID systems for CDD helps to reduce the risk of financial crimes such as money laundering and terrorism financing. Compliance with these regulations helps businesses to avoid being implicated in such activities.
  • Enhancing Customer Trust
    The use of digital ID systems for CDD helps to improve the accuracy and efficiency of identity verification processes. This enhances the customer experience and builds trust with customers, who are more likely to use a business that is seen as compliant and secure.

How can Idenfo Direct help?

At Idenfo Direct, we are fully equipped to help businesses stay up-to-date with the latest regulations and ensure they are meeting all compliance requirements. Our platform provides a secure and convenient solution for businesses to perform digital ID verification for their customers, in compliance with the AML-CFT Act. Our user-friendly interface makes it easy for businesses to verify identities in real-time, without the need for manual input or paper-based documentation.

By using Idenfo Direct, your business can be  assured that you are meeting your obligations under the AML-CFT Act, while also improving your customer experience. Our platform is fully compliant with the latest regulations and standards, ensuring your business can stay ahead of the curve when it comes to compliance in the UAE.

To download the original document from the UAE Government click below

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