Guidelines on Electronic Know Your Customer (e-KYC)

The Electronic Know Your Customer (e-KYC) Guidelines deals with electronic customer onboarding, identification and verification of customer identity, creating of customer digital KYC profile as well as risk grading of customer in a digital means.

The scope of this Guideline will be as follows:

  • The provisions of this Guideline shall be applicable only for natural person;
  • The requirements of this guideline shall be applicable based on the risk exposures of the customers of the financial institutions. For example, for an assessed low risk customer, financial institution shall be required to conduct simplified e-KYC which includes electronic customer onboarding, verify customer identity and preserve customer profile digitally, whereas, financial institution shall be required to conduct regular and enhanced e-KYC which includes electronic customer onboarding, verify customer identity, preserve KYC and risk grading in a digital manner for a customer with a regular and higher risks scenario;
  • The e-KYC requirement of this Guideline is based on the biometric verification; therefore, a client whose status is legal person or legal arrangement excluded from the obligation of this Guideline. In this case, KYC and CDD norms for the legal person or legal arrangement shall be undertaken as per the provisions of the MLPA 2012, Anti-Terrorism Act (ATA), 2009, the MLP Rules, 2019, Anti Terrorism (AT) Rules 2013; and instructions contained in the circulars and guidelines issued the BFIU time to time.
  • Where e-KYC attempts failed due to any technical reason, the traditional KYC approach should be followed for the natural person.

Contents

1. Introduction
1.1 Background
1.2 Scope
1.3 Objective...
2. e-KYC Process
2.1 Definitions
2.2 Process
2.3 Applicability
3. Customer on Boarding-Simplified
3.1 Customer on boarding models
3.2 Customer on boarding by using fingerprint
3.2.1 Required Technology
3.2.2 Sanctions and other screening
3.2.3 Audit trail of customer profile
3.2.4 Matching parameters
3.2.5 Security measures
3.3 Customer on Boarding- by using face matching
3.3.1 Required Technology
3.3.2 Sanctions and other screening
3.3.3 Audit trail of customer profile
3.3.4. Matching parameters
3.4.5 Security measures
4. Customer on boarding-regular measure
4.1.Required Technology
4.2 Sanctions and other screening
4.3 Audit trail of customer profile
4.4 Matching parameters
4.5 Security measures
5. Other relevant issues
5.1. Record Keeping
5.2. Reliance on third parties
5.3 Risk Assessment
5.4 Implementation
5.5 Transformation of existing clients CDD
6.e-KYC Profile- Simplified and Regular
6.1 Sample e-KYC output for simplified measures
6.2. Sample e-KYC output for regular measures
6.3 Customer Risk Grading Risk Grading Form
Annexure

Document Details

Document Type: 
Doument Author (Entity): 
Authoring Country: 
Originating Country or Trade Block: 
Issue Status: 
Year of Document: 
2019
Date of Document: 
Sunday, December 1, 2019
Document Authors: 
Bangladesh Financial Intelligence Unit
Language (This Document): 
English

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