Financial Crime World

Title: Djibouti’s AML-KYC Regulations: Key Identity Verification Requirements for Businesses

1. Introduction

Djibouti, an eastern African country, has strengthened its stance against money laundering and terrorist financing by introducing comprehensive regulations. This article outlines the essential aspects of Djibouti’s Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations, focusing on identity verification procedures.

2. Scope

This article serves as a reference to highlight crucial information from Djibouti’s ‘Blanchiment, confiscation et cooperation internationale en matière de produits du crime’ and ‘Dispositif De Prevention Du Blanchiment De Capitaux Et Du Financement Des Activités Terroristes’. We primarily emphasize the identity verification requirements according to Djibouti’s guidelines and the relevant document.

3. Definitions

  • Client: Shufti Pro’s customer
  • Customer: The client’s customer subjected to KYC-AML checks
  • End-user: The client’s customer (from Shufti Pro’s perspective)
  • Document Verification: The process of confirming the authenticity of a government-issued identity document
  • Identity Verification: The process of verifying an individual’s identity
  • Proof of Identity: Any government-issued identity document used to identify a natural person
  • Enhanced Due Diligence (EDD): A procedure that scrutinizes potential business relationships more thoroughly
  • Third-Party Diligence: Outsourcing the due diligence process to an external party
  • Politically Exposed Person (PEP): An individual with a higher risk for potential involvement in bribery or corruption
  • Due Diligence: The measures taken to mitigate risks before entering an agreement or carrying out a financial transaction

4. Identity Verification: Required Documents for Verification

The following documents are considered proof of identity in Djibouti for both Identity Verification and Address Verification processes:

Identity Verification

  • Identity Card
  • Passport
  • Driving License

Address Verification

  • Current utility bill [e.g., gas, electricity, telephone, or mobile phone bill]
  • Government department-issued document
  • Bank statement [not older than 3 months]

When verifying the End-user’s identity, the document verification process involves not only identity attributes (last name, first name, date of birth, place of birth, identification data, and address) but also document authentication. Shufti Pro can assist in this process by utilizing specialized document verification tools to check authenticity features such as holograms, tapered edges, and more.

5. Obligations for End-Users: EDD Measures and PEP Screening

Under Djibouti’s Enhanced Due Diligence requirements, you must determine if your customer is a PEP, holds a public office, or exhibits a higher risk profile. Shufti Pro offers an AML Screening service to screen an individual’s selected ID attributes (Name and DOB) against watchlists of global regulatory authorities, foreign, and domestic databases, compromised PEPs, and sanctioned individuals. Utilize such services as needed to fulfill your obligations, either before or after establishing a relationship with your customer.

In the absence of explicit regulations, clients can choose to seek third-party services for addressing AML/KYC obligations. Regardless of relying on a third-party, the client remains liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.

6. Compliance and Data Retention

As per Djibouti’s regulations, all necessary data, referred to as Due Diligence Data, must be retained for a minimum of five years. If this information is processed, collected, and managed by a relevant third-party, you are liable to collect all such information from the third-party without undue delay.