Circular Letter No. CC/2020/00000035: Verification of Identifying Elements via Means Referenced in Article 25(2) of Law No. 83/2017

Circular Letter No. CC/2020/00000035 Sent to: Credit Institutions; Financial Companies; Payment Institutions and Electronic Money Institutions. Mod. 40000375/T – 01/14 Subject: Verification of identifying elements through the means referred to in paragraph 2 of Article 25 of Law No. 83/2017, of August 18

The Banco de Portugal has been receiving a significant number of requests for information and complaints related to the requirement to submit a copy of the citizen card in the context of establishing business relationships or updating identification elements.

As is known to financial entities subject to the supervision of the Banco de Portugal in matters of prevention of money laundering and financing of terrorism, in order to comply with the duty of identification and due diligence, pursuant to paragraph 1 of Article 25 of Law No. 83/2017, of August 18 (“Law”), a valid identification document must always be presented, whether prior to the establishment of a business relationship or pending update procedures (Article 40 of the Law).

Paragraph 2 of Article 25 of the Law enumerates the means that may be used to verify the aforementioned elements, namely: a) Through the electronic use of the citizen card using the public administration interoperability platform, after authorization by the document holder or their respective representative; b) Through the Digital Mobile Key; c) Using interoperability platforms between information systems issued by public services, in accordance with Regulation (EU) 910/2014 of the European Parliament and of the Council, of July 23, 2014.

Although paragraph 4 of Article 25 of the Law allows the use of other verification means, including the reproduction of the identification document [paragraph a)], the use of these should be subsidiary in nature and, as such, should only occur when the client does not express the intention to verify the identifying elements through the means referred to in paragraph 2 of the same article or does not have the necessary elements for this purpose.

Mod. 40000375/T – 01/14 In this sense, the Banco de Portugal wishes to alert financial entities to the need to make available to their clients the technological means and services that allow the use of the set of verification means enumerated in paragraph 2 of Article 25 of the Law, in accordance with the provisions of paragraph 3 of the same article, both in identification and due diligence procedures associated with the establishment of a business relationship, and in procedures for updating identification elements.