Austria Turns to NFC and Biometrics for Secure KYC Identification
Enhancing Financial Security and Efficiency in Austria
In a significant move towards enhancing financial security and efficiency, Austria’s Financial Market Authority (FMA) has updated its Online Identification Regulation to allow the use of Near Field Communication (NFC) and biometric technologies for Know Your Customer (KYC) requirements. The new regulation, effective from 2023, marks a shift away from traditional manual or optical verification methods.
A Shift Towards Trusted Technologies
The FMA’s decision follows similar steps taken by regulatory bodies in Switzerland and the UK, which have promoted the use of trusted technologies to ensure Anti-Money Laundering (AML) obligations are met effectively. By adopting NFC and biometric authentication technologies, financial institutions in Austria can enhance customer identification processes while meeting AML requirements.
Key Requirements for NFC and Biometrics
The FMA has outlined specific requirements for the use of NFC and biometric technologies, including:
- Latest Technological Capabilities: The process must utilize the latest technological capabilities.
- Liveness Checks: Evidence of the verification process, including liveness checks, must be documented.
- Electronic Signatures: Identity document images do not need to be stored; instead, data from the chip with electronic signatures can suffice.
- Verification of Electronic Signatures: Verifiers must check the electronic signatures on the data for validity.
Existing Solutions Meeting Requirements
Several solutions are already available to meet these requirements. ReadID, for example, provides a comprehensive evidence package and has implemented cloning detection and PACE access technologies, allowing it to fully support the latest NFC and biometric capabilities. It also partners with biometric face verification providers like iProov to complete KYC processes.
High Adoption Rate of E-Passports in Austria
Austria’s move towards NFC and biometrics is not surprising, given its high adoption rate of e-passports. In 2017, over 88% of Austrians held a valid passport, and the number has likely grown since then. With more than 160 countries worldwide issuing e-passports, including all European nations, this technology is becoming increasingly prevalent.
Meeting FMA Requirements for Enhanced Customer Identification
As financial institutions in Austria prepare to adopt NFC and biometric technologies for KYC purposes, they must ensure that their solutions meet the FMA’s requirements. By doing so, they can enhance customer identification processes while also meeting AML obligations effectively.