2024-11-07
Added · Updated
The National Bank of Moldova issued Decision No 281 to approve regulations governing the remote identification and verification of customer identities by reporting entities. The framework mandates the implementation of robust IT solutions, comprehensive risk assessments, and specific technical standards for electronic identification methods such as video and biometric verification. Reporting entities must establish strict internal policies, conduct pre-implementation and ongoing monitoring of their systems, and ensure compliance with anti-money laundering obligations within a six-month transition period.
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NATIONAL BANK
DECISION No 281 of 7 November 2024 on the approval of the Regulation on the requirements for the identification and verification of customers’ identities by electronic means Published: 14.11.2024 in the OFFICIAL GAZETTE No 467-469 Article 886 Pursuant to Article 51 , paragraph (3) of Law No 308/2017 on the prevention and combating of money laundering and terrorism financing (Official Gazette of the Republic of Moldova, 2018, No 58-66, Article 133), the Executive Board of the National Bank of Moldova DECIDES:
Appendix
To the Executive Board Decision of the National Bank of Moldova No. 281 of 07.11.2024 Regulation on the requirements for the identification and verification of customers’ identities by electronic means
Chapter I. General Provisions
an appropriate risk assessment and according to the level of risk, through the use of one or more of the methods provided in article 51 paragraph (2) of Law no. 308/2017; IT solution of establishing remote business relationships (IT solution) – means a set of technological components involved in the remote electronic identification process of a person, through which data are transmitted, images captured/uploaded and/or information is provided by the applicant; Electronic means - represent tools that operate through innovative digital technologies using, inter alia, artificial intelligence and/or machine learning processes, such as applications performing person identification and/or identity document verification (e.g. digital image capture, facial biometric measurement, image matching), NFC (Near Field Communication) technology embedded in electronic identity documents.
Chapter II. Policies and procedures related to identification and verification of the
customers’ identity by the electronic means
Section 1
Policies and procedures
5. The reporting entity shall develop remote identification policies and
procedures in order to comply with its obligations under Article 5(2)(a) of Law 308/2017 in cases where the customer is identified remotely. These policies and procedures shall be established based on the money laundering and terrorist financing risks identified and shall include, at a minimum, the following:
a) a general description of the IT solution used to collect, store, compare, verify, validate and update information throughout the process of establishing remote customer business relationships. This shall include an explanation of the components and functioning of the IT solution; b) the circumstances under which the IT solution may be used taking into account the risk factors identified and assessed in accordance with article 6 paragraph (1) of Law no. 308/2017, within the framework of the entity’s own risk assessment, including a description of the categories of customers, products and services eligible for remote identification; c) the stages that are fully automated and those that require human intervention; d) the controls established to ensure that the first transaction with a newly onboarded customer identified remotely is executed only after all customer due diligence measures, as required under Law 308/2017 have been applied; e) a description of the induction and periodic training programs aimed at ensuring staff awareness, ongoing training and understanding of the functioning of the IT solution and the associated risks;
f) the requirements for the retention of data and information collected in the process of identification and verification of the customer’s identity by electronic means.
Section 2
Pre-implementation of IT solution
6. When considering the implementation of an IT solution for the purpose of
remote customer identification, the reporting entity shall conduct a preimplementation assessment of that solution. Accordingly, the reporting entity shall define the scope, steps and requirements to be followed, including data recording and retention requirements, which shall include:
a) an assessment of the adequacy and security of the IT solution in terms of the accessibility, completeness, accuracy and integrity (non-repudiation) of the data and documents to be processed, as well as the reliability, authenticity and independence of the information sources used; b) an assessment of the impact of the use of the IT solution on the specific risks of the entity, including money laundering and terrorist financing risks, as well as operational, reputational and legal risks, including the impact evaluation on the protection of personal data under the Law No 133/2011; c) the identification of possible mitigating measures and remedial actions for each risk identified; d) the identification of the IT solution’s capability to mitigate the risk of using virtual private networks (VPNs) or proxy services aimed at concealing location or preventing the application of monitoring requirements; e) an assessment of the compliance of the IT solution with the requirements for conducting the remote customer identification procedure using electronic means as established for the qualified trust service providers, under the provisions of Law no. 124/2022 and its subordinate normative acts; f) an assessment of the compliance of the IT solution with the requirements of conducting remote customer identification and verification procedure using electronic means as laid down in international technical standards 1 ; g) tests to assess fraud-related risks, including risks of the identity theft or impersonation; h) an ICT and information security risk assessment; i) an end-to-end functional testing of the IT solution, covering the customers, products and services for which the solution is applicable. 1 See the provisions of pt. 29 of the Regulation.
c) indicators of compromised confidentiality, integrity or authenticity of the session resulting from the identification procedure; d) a register of cases of regular or non-compliant use of the access device or IT solution provided to the person to be identified by the reporting entity; e) abnormal/unusual geographical location of the person; f) high risk geographical location (jurisdiction) of the person; g) cases of identity theft, impersonation or unlawful processing of personal data identified.
10. The reporting entity shall establish within its remote customer identification
policies and procedures developed in accordance with point 5 remedial measures to be applied where errors have been identified that affect the effectiveness of the IT solution. These measures shall include, at a minimum, at following:
a) a review of all affected business relationships to assess whether the reporting entity has properly applied customer due diligence (CDD) measures, with priority given to customers presenting an increased risk of money laundering and terrorist financing; b) an assessment based on the information obtained during the review referred to in letter a) to determine whether an affected business relationship should be:
including those in jurisdictions implementing similar standards for the prevention of money laundering and terrorist financing.
Chapter III. Requirements for the identification and verification of
customers’ identities by electronic means
12. The reporting entity shall carry out the identification and verification of the
customer’s identity by electronic means, with respect to potential new customers with whom the reporting entity intends to establish business relationships.
13. The reporting entity shall carry out the identification and verification of
customers’ identities by electronic means in relation to:
a) natural persons who are citizen of the Republic of Moldova; b) resident legal entities whose representatives, founders, administrators and beneficial owners are citizens of the Republic of Moldova.
14. The reporting entity shall ensure that the IT solution includes components
enabling the collection of the information necessary for customer due diligence (CDD), in accordance with the requirements of the remote customer identification policies and procedures developed by the reporting entity in accordance with point 5, it shall be capable of collecting:
a) all relevant data and documents necessary to identify and verify the identity of the natural and/or legal person; b) all relevant data and documents necessary to verify that the natural person acting on behalf of the legal person is legally authorized to act in such capacity; c) all relevant data and documents necessary to identify and verify the identity of the beneficial owner; d) all relevant data and documents necessary to determine the purpose and intended nature of the business relationship.
15. The reporting entity shall ensure that regardless of the method applied for the
remote identification and verification of customers’ identities, the information that is normally required from customers identified in person is also collected and submitted by the customer. The method of information collection shall be determined by the reporting entity, which shall specify the type of information to be collected:
a) manually, entered by the customer or by an employee of the reporting entity; b) automatically from documents submitted by the customer; c) from other internal or external sources, collected either automatically or by an employee of the reporting entity;
c) „Anty-Money Laundering Policy" - shall contain a concise version of the policy regarding customer identification, prevention of money laundering, terrorist financing of politically exposed persons.
Chapter IV. Methods for the identification and verification of customers’
identities by electronic means
21. When identifying and verifying customers’ identities by electronic means, the
reporting entity shall, depending on the level of money laundering and terrorist financing or other associated risks, use one or more of the following remote identification methods:
a) means of electronic identification providing an adequate level of security and complying with the standards established under Law no.124/2022 (qualified electronic signature); b) electronic means ensuring the simultaneous live transmission of video and audio including elements verifying the customer’s physical presence, as well as the recording of the original identity document and the capturing of the customer’s facial image during the live session; c) electronic means ensuring the live transmission of a photograph including elements verifying the customer’s physical presence, together with the recording of the original identity document; d) other electronic means provided by a qualified trust service provider, accredited under Law 124/2022.
22. When identifying and verifying customers’ identities using video/photo
identification means, with the involvement of a human operator, the reporting entity shall ensure that the identification process is recorded and that it meets the following requirements:
a) it shall be of a reasonable duration (as established under the entity's internal regulations), and shall contain, at a minimum, the following relevant information/data:
hour, day, year of the recording;
the exact time at which the natural person subject to video verification
presents their identification data from the identity document (name and surname, personal identification number, date/month/year of birth, domicile and/or residence address), as well as the time/date/month/year of the recording and the customer’s mobile phone contact number;
the time at which the employee of the reporting entity contacts the
customer during the video verification and/or the time at which the customer receives or enters the unique code or accesses the link sent via Short Message Service (SMS) or email;
the time when the customer brings the identity document close to the
camera and displays both sides of it; b) shall comply with the following conditions:
the identification process shall be carried out in a quiet environment with
adequate lightning conditions and no third person shall be involved in the process, so as to allow clear identification of the individual, otherwise, the process shall be interrupted;
the video/photo verification process shall be conducted in real time and
without interruptions, through a continuous live stream. If the verification process is interrupted, regardless of the reason, it shall be restarted from the beginning;
the identification process shall ensure a free and clear interaction between
the employee of the reporting entity and the customer, as well as the visual verification by the employee of the documents presented by the customer, including the applicable security features of the document concerned;
the identification process shall ensure that the original documents are
used and that no reproductions of original document, such as a photographs, copies or scans are accepted;
the identification process shall ensure that the quality of the video and
audio during the live transmission is high, with a resolution of minimum 8 megapixels or at least FullHD (1920x1080), to enable accurate and unconditional identification of the individual;
the identification process shall ensure that the live video transmission is
recorded in color and synchronized with sound;
the identification process shall ensure the automatic capture of the
customer's facial image and identity document;
the identification process shall ensure that the IT solution does not permit
the uploading of pre-recorded photos/videos during the live interview or photo identification process;
the identification process shall ensure the use of appropriate technologies
to maintain the integrity and security of video/photo recordings used for identity verifications.
a) It shall be of a reasonable duration (as established under the entity’s internal regulations), and shall include, at a minimum, the following relevant information and data:
extracted from the customer's official document(s) or photograph(s) obtained from secure and independent sources;
d) confirmation of the existence and correspondence of the security features that must be present on the identity document presented by the customer, in line with the standards applicable to the respective type of document; e) where there are suspicions regarding the identity of the person or the authenticity of the documents presented, additional questions shall be asked to verify the person’s identity or the authenticity of the documents or a manual verification of the information shall be carried out by an employee; f) comparison of the data from the identity documents presented with the data contained in the State Register of Population.
28. For the purpose of verifying and validating the data/information obtained
from the customer during the video verification process , the reporting entity shall:
a) to obliged to verify the customer with regard to the following aspects:
a) Law 308/2017 on preventing and combating money laundering and terrorist financing; b) the normative acts issued by the NBM in the field of preventing and combating money laundering and terrorist financing; c) the normative acts issued by the Service for Prevention and Combating Money Laundering in the field of preventing and combating money laundering and terrorist financing; d) this Regulation; e) the additional enhanced due diligence measures established in the reporting entity’s internal documents.
38. When identifying customers by electronic means, the reporting entity shall
apply enhanced due diligence measures, in addition to those provided in article 8, paragraph (3) of Law no. 308/2017, in the following cases:
a) the person is a former customer with whom the business relationship was terminated due the inability to apply due diligence measures in accordance with the article 5, paragraph (3) of Law no. 308/2017; b) the person is a resident, including a temporary resident of a high risk jurisdiction; c) the person is managing assets under fiduciary administration (trust, investment fund).
39. Depending on the risk, the reporting entity may use one or more of the
methods set out in point 21 to manage and mitigate the risks of money laundering and terrorist financing, including by obtaining additional information from the customer. In such situations, the additional methods used shall not be considered a remote customer identification method, but rather a measure applied by the entity for the effective management of money laundering or terrorist financing.
40. The reporting entity shall adequately identify and manage the information
and communication technology and security risks associated with the use of the remote customer identification process, including in cases where third parties are used or where the process is outsourced.
41. The reporting entity shall use secure communication channels to interact with
the customer during the remote identification process and associated exchange of information. The remote customer identification IT solution shall use secure protocols and cryptographic algorithms in line with industry best practices to ensure the confidentiality, authenticity, integrity and availability of the data exchanged, as applicable.
The reporting entity shall provide the customer with information on the
applicable security measures that must be taken to ensure the secure use of the IT solution.
When establishing business relationships through other methods of remote
customer identification using digital means accepted under Law no. 124/2022, and regulated by the Government, the reporting entity shall assess the extent to which such methods comply with the provisions of this Regulation and shall apply the necessary measures to mitigate the relevant risks arising from their use. The reporting entity shall, in particular, consider whether at least the following risks are addressed:
a) the risk of impersonation fraud, including the aleration of the applicant's appearance through physical and/or electronic means; b) the risk that the customer's identity is not claimed or does not correspond to that recorded in the State Population Register; c) the risk of counterfeiting and forgery of identity documents through physical or electronic means; d) the risk of loss, theft, suspension, revocation or expiry of proof of identity, including, where applicable, tools for detecting and preventing identity fraud; e) the risk of personal data breaches.
Chapter VII. Data processing and retention
When processing personal data, the reporting entity shall comply with the
data confidentiality procedure, to undertake the necessary organizational and technical measures to protect personal data against unlawful or accidental access, destruction, alteration, blocking, copying, unlawful or unauthorized dissemination, and other unlawful actions.
For the purpose of electronic customer identification, the reporting entity
shall process the data and ensure the protection and confidentiality of personal data obtained in the process of implementing the provisions and requirements of this Regulation, in accordance with the normative acts on personal data protection and this Regulation.
The reporting entity shall retain all documents and information obtained
from customers, including video, audio, photo, screenshots, including copies of identification documents, the electronic fingerprint of the computer/device used, the IP address, and any other documents or information obtained, throughout the active period of the business relationship and for a period of 5 years after its termination.
The reporting entity shall ensure that, upon request, the documents and
information on the identification and verification of customers, beneficial owners, as well the monitoring of customer transactions, including supporting documents related to such transactions, are made available to the National Bank of Moldova, the Office for Prevention and Combating Money Laundering and law enforcement authorities.
Chapter VIII. Responsibilities
In implementing this Regulation, the reporting entity shall inform the
National Bank of Moldova of any suspicious activities and fraud incidents that pose risks to the safety, proper functioning or reputation of the reporting entity.
The reporting entity shall notify the National Bank of Moldova, at least 30 days
prior to the initiating the customer identification procedure by electronic means, regarding its compliance with the following requirements:
a) evidence that the reporting entity has appropriate remote identification policies and procedures in place, implementing the requirements of this Regulation; b) evidence that the reporting entity has carried out the pre-implementation assessment of the IT solution in accordance with point 6; c) evidence that the employees of the reporting entity responsible for video identification using human-assisted verification means have been trained in accordance with point 32 letter (a); d) evidence that the reporting entity has adequate premises for conducting video identification using human-assisted verification means, in accordance with point 32 letter (b); e) evidence that the reporting entity has appropriate remote identification methods in place, in accordance with the requirements of Chapter IV.
The notification referred to in point 49 of this Regulation shall be submitted
only once, prior to the reporting entity commencing the customer identification procedure by electronic means and implementing the provisions of this Regulation.
The outsourcing of the process of customer identification and verification of
customer identity by electronic means shall be carried out by the reporting entity in accordance with the provisions of the applicable normative acts.
The reporting entity shall immediately cease the use of IT solution for
establishing remote business relationship by electronic means upon the request of the National Bank of Moldova, if it is determined that the solution poses significant risks to the security or integrity of the customer identification and verification process.
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Source: National Bank of Moldova — original document · Summary generated with machine assistance and reviewed before publication; the authoritative text is the regulator's original document. How RegAlert works