Financial Crime World

Here is the rewritten article in markdown format:

Customer Onboarding in Bangladesh: A Guide to Electronic Know Your Customer (e-KYC) Procedures

In this guide, we will outline the key steps involved in customer onboarding in Bangladesh using electronic Know Your Customer (e-KYC) procedures.

Customer Onboarding Models

Financial institutions in Bangladesh can follow two primary bio-metric based models of customer onboarding:

1. Customer Onboarding by Using Fingerprint

  • Collect a customer’s NID number and Date of Birth
  • Match fingerprint data with the NID database for verification

2. Customer Onboarding by Matching Face

  • Use facial recognition technology for verification
  • Similar to the fingerprint model, this involves matching the provided face data with the NID database

Additionally, other bio-metric methods like voice matching and iris matching can be used if sufficient infrastructure is available. Financial institutions can also introduce innovative models using biometrics beyond these four methods with prior approval from the Bangladesh Financial Intelligence Unit (BFIU).

Customer Onboarding Process

The e-KYC process involves multiple activities:

1. Data Capture and Generation

  • Collect customer information, including NID number, Date of Birth, and personal details
  • Generate necessary data for onboarding

2. Identity Verification

  • Match the provided data with the NID database using fingerprint or facial recognition technology
  • Verify the customer’s identity

3. Sanction and Other Screening

  • Conduct necessary screenings to ensure compliance with regulatory requirements
  • Check for any sanctions or restrictions on the customer

4. Account Opening

  • Create a new account for the customer
  • Set up necessary account settings

5. Customer Profiling (e-KYC Profile)

  • Generate an electronic profile for the customer, including their demographic and financial information
  • Keep the profile updated with any changes in customer data

6. Customer Risk Grading (as applicable)

  • Assess the customer’s creditworthiness and assign a risk grade
  • Use this grading to determine the level of risk associated with the customer

The onboarding process can be initiated through various channels, including self-check-in, assisted check-in by service providers, or other relevant means.

If you would like me to elaborate on any of these points, please let me know.