Financial Crime World

Austria Takes Step Forward in Digitalization with New KYC Guidelines

The Austrian Financial Market Authority (FMA) has made a significant move by amending its online identification ordinance, allowing for the use of automated biometric processes to verify identities remotely. This development is expected to benefit both consumers and businesses alike, paving the way for smoother and more secure Know Your Customer (KYC) requirements.

Benefits for Consumers and Businesses

  • Improved conversion rates and enhanced customer experiences through quicker and more efficient identity verification processes
  • Better compliance with KYC regulations, reducing the risk of non-compliance fines and reputational damage
  • Increased security features in identity verification process

Revised Guidelines

The revised Austrian Anti-Money Laundering Act (Austrian AMLA) sets out new biometric verification criteria that must meet current technological standards and offer an equivalent level of security as in-person identity verification. This includes:

  • ID document security feature checks
  • Biometric capture
  • Liveness Detection verifiable via video recording

Enhanced Security Features

From January 2023 onwards, photo IDs will need to be verified by reading the electronic security chip (NFC chip), providing an additional layer of security in the identity verification process.

IDnow’s Commitment to Innovation

As a leading provider of digital identity solutions, IDnow is working closely with authorities, regulators, and European standardization bodies such as the IDO Alliance to drive innovation in identity verification. The company’s membership in Hyperledger, W3C, and Linux Foundation enables it to contribute to the development of a secure, modern identity ecosystem that meets the evolving needs of businesses and individuals.

Conclusion

The new KYC guidelines in Austria are a significant step forward in the country’s efforts to balance digitalization with security and compliance. As the world continues to navigate the complexities of online identity verification, IDnow remains committed to delivering cutting-edge solutions that prioritize user experience, security, and regulatory compliance.