Financial Crime World

Austria Takes Major Step in Enhancing Financial Security with New KYC Requirements

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In its latest effort to combat cybercrime and maintain the highest security standards, the Austrian Financial Market Authority (FMA) has revised the country’s Anti-Money Laundering Act (AMLA). This amendment enables financial institutions to adopt fully automated biometric processes for remote identity verification.

Simplifying Know Your Customer (KYC) Requirements

Effective from January 2023, the new regulations aim to simplify KYC requirements for banks and other AML-required companies. By adopting biometric capture and Liveness Detection, financial institutions can verify customer identities more efficiently.

Biometric Verification Criteria

The revised ordinance permits the use of a range of remote identity verification methods, including:

  • Biometric capture
  • Liveness Detection (verified via video recording)
  • Photo ID verification using the electronic security chip (NFC chip) starting January 2023

These biometric verification criteria must meet current state-of-the-art technology standards to ensure a level of security equivalent to in-person identity verification.

Benefits for Users and Companies

The FMA’s decision has been hailed as a positive development, offering several benefits:

  • Quicker processes for users
  • Streamlined services leading to improved conversion rates for companies
  • Reduced risk of fraud with the added layer of security provided by NFC chip verification

Industry Response

IDnow, a leading identity verification solutions provider, welcomes the amendment. As a member of various European standardization working groups, IDnow is committed to creating a safe and modern identity ecosystem that meets the evolving needs of financial institutions.

Impact on the Financial Sector

The implementation of these new KYC requirements is expected to have a significant impact on the financial sector in Austria:

  • A more secure way for customers to verify their identities
  • Improved efficiency for financial institutions
  • Enhanced compliance with security and anti-money laundering regulations

In an era where cybercrime continues to pose challenges, this move by the FMA is a crucial step towards ensuring the highest standards of security and compliance in the financial industry.