Djibouti’s Financial Crime Reporting Regulations: Ensuring Identity Verification and Compliance
Djibouti, a small coastal nation in the Horn of Africa, has established stringent anti-money laundering (AML) and counter-terrorist financing (CTF) regulations to prevent illicit financial activities. In this article, we provide an overview of these regulations, with a focus on identity verification requirements in Djibouti.
Introduction
Djibouti’s regulations, outlined in ‘Blanchiment, confiscation et cooperation internationale en matière de produits du crime’ and ‘Dispositif De Prevention Du Blanchiment De Capitaux Et Du Financement Des Activites Terroristes’, criminalize money laundering, lay down safeguards, and provide guidelines for legal entities and individuals to prevent and detect such financial crimes.
Scope
This document serves as a reference for information from the aforementioned Djiboutian regulations, specifically pertaining to AML and know-your-customer (KYC) procedures and identity verification requirements.
Definitions
- Client: Shufti Pro’s client
- Customer: The client’s end-user
- Document Verification: Verifying the authenticity of government-issued identity documents
- Identity Verification: Verifying an individual’s identity
- Proof of Identity: Government-issued documents used to identify individuals
Due Diligence Requirements
Under Djiboutian regulations, identity verification is critical in identifying natural persons from official documents. Required identity attributes include:
- Last name and first name
- Date of birth
- Place of birth
- Identification data
- Address
Identity Verification Procedures
To comply with Djibouti’s identity verification requirements, Shufti Pro can apply various measures at the client’s request. These include:
- Independent document verification using photo-based, biometric identification documents
- Checking the authenticity of submitted documents using specialized document verification services
Required Documents for Verification
Identity verification can be performed using several documents such as:
- Identity cards
- Passports
- Driving licenses
Address verification can be achieved using utility bills, government-issued documents, or bank statements.
Timing for Verification
Identity verification procedures are not limited to a one-time process. They should be performed at various instances such as:
- When onboarding new customers
- Dealing with transactions above monetary thresholds
- Facing higher risks from customers
Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD) Measures
As per the Enhanced Due Diligence requirements under Djibouti’s regulations, clients are required to determine if their customers are PEPs, hold public offices, or exhibit higher risk profiles. Shufti Pro offers an AML Screening service that screens individuals’ selected identity attributes against global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals. This service highlights the category and any immediate family members or close associates of the PEP.
Reliance on External Services
Although not explicitly regulated, clients may seek third-party services to fulfill AML/KYC obligations. Regardless of third-party reliance, clients remain liable for regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
As per Djibouti’s regulations, data must be retained for not less than five years for due diligence purposes. If this information is processed, collected, and managed by a relevant third-party, clients are liable to collect all necessary due diligence data from the third-party without undue delay.
Conclusion
These regulations constitute a crucial first step in creating a robust AML and KYC framework within Djibouti. By adhering to these requirements, businesses and individuals can contribute to a safer and more transparent financial environment in the country.