Title: Central Bank of Solomon Islands Hosts Workshop on Electronic KYC Facility in Honiara: A Step Towards Regional Financial Inclusion

Introduction

The Central Bank of Solomon Islands (CBSI) held a workshop last month in October 2021, in Honiara, to discuss the implementation of an Electronic Know Your Customer (e-KYC) facility. This digital and paperless process aims to increase efficiency and reduce costs by allowing identity verification and KYC requirements to be completed remotely.

Attendees and Facilitators

The workshop was facilitated by the Reserve Bank of Australia (RBA) with presentations from various public, private sector, and multinational organizations. Participants included representatives from commercial banks, financial institutions like the Solomon Islands National Provident Fund and Development Bank of Solomon Islands, Money Transfer Operations, and government agencies like the Ministry of Finance & Treasury (MOFT), Ministry of Commerce, Industry, Labour & Immigration (MCILI), and Telecommunications Solomon Islands (TCSI).

Significance of the Workshop

The importance of this two-day event was highlighted by CBSI Deputy Governor Raynold Moveni. He emphasized the necessity of implementing the e-KYC facility as a response to the global de-risking trend, which could potentially undo financial inclusion progress in South Pacific countries.

Benefits of e-KYC Facility

The e-KYC facility could offer several benefits:

• Improve customer due diligence processes and AML/CFT compliance
• Reduce the cost of remittances, particularly between Australia, New Zealand, and the South Pacific
• Decrease legal compliance risks
• Support the provision of correspondent banking services

Steps Towards Establishing an e-KYC Facility in Solomon Islands

1. Development of national identity system and registration database
   • Solomon Islands is currently collaborating with the United Nations Capital Development Fund (UNCDF) and TCSI to create a national SIM registration database
2. Exploration of potential development of a Solomon Islands e-KYC facility
   • CBSI aims to investigate how to develop an e-KYC facility that meets FATF standards and international best practices
3. Laying the foundation for digitalization, digital identity, and AML/CFT compliance initiatives

Conclusion

The establishment of an e-KYC facility is a crucial step towards increasing financial inclusion and digitalization in the South Pacific region. The workshop marked an essential milestone in CBSI’s efforts to implement this facility in Solomon Islands. For further information, please contact the Central Bank of Solomon Islands (CBSI) at 21791 or email info@cbsi.com.sb. Their website is accessible at www.cbsi.com.sb.