Regulatory Alerts2021-04-06
FATF Guidance on Digital Identity
The Financial Action Task Force issued this guidance to clarify how regulated entities and governments can utilize digital identity systems for customer due diligence under FATF Recommendation 10. It establishes that reliable, independent digital ID systems with appropriate risk mitigation may be considered standard or lower risk, provided they meet specific assurance levels defined by frameworks like NIST or eIDAS. The document provides a risk-based approach for assessing these systems and offers recommendations to enhance anti-money laundering controls while supporting financial inclusion.
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