Digital ID and AML/CDD/KYC Utilities for Financial Inclusion, Integrity and Competition

Abstract

Customer identification is key to protecting market integrity. The know your customer, anti-money laundering, and counter-terrorism financing rules all work to this end. However, these strict rules can limit access to financial services, particularly by small and medium enterprises and poorer individuals. Global interest in e-identity is growing, with multiple countries either establishing, or having already established, national e-identity systems. The potential of centralized identity databases to simplify the experience of accessing both government and financial services is clear. Efficient e-identity services also hold great potential for international financial centers. This article sets out three measures to which such centers must pay particular attention in building their e-identity systems.