Financial Crime World

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Austria Moves Towards Faster and More Secure Know Your Customer Process with New Biometric Verification Rules

In its ongoing efforts to keep pace with the rapidly evolving digital landscape, Austria’s Financial Market Authority (FMA) has made a significant move by amending the country’s Anti-Money Laundering Act (AMLA). The changes allow for the use of fully automated biometric processes for remote identity verification, paving the way for faster and more secure Know Your Customer (KYC) requirements.

Benefits for Users and Businesses

As part of the revised ordinance, banks and other AML-required companies can now rely on a range of remote identity verification methods to meet their KYC obligations. This shift is expected to benefit both users and businesses alike:

  • Customers will enjoy quicker processes and improved conversion rates.
  • Businesses will benefit from reduced costs and increased efficiency.

Technical Requirements

The new biometric verification criteria must meet current state-of-the-art technology standards and offer the same level of security as traditional in-person identity verification procedures. The technical requirements for this process include:

  • ID document security feature checks
  • Biometric capture
  • Liveness Detection, which can be verified via video recording

Photo ID Verification

Under the revised amendment, a photo ID will need to be verified by reading the electronic security chip (NFC chip) starting from January 2023. This development is seen as a major step forward in ensuring the integrity of identity verification processes in Austria.

IDnow’s Commitment to Secure Identity Verification

IDnow, a leading provider of digital identity solutions, has been working closely with authorities, regulators, and European standardization working groups like IDO Alliance to drive the development of secure identity verification technologies. As a member of organizations such as Hyperledger, W3C, and Linux Foundation, IDnow is committed to creating a safe, modern identity ecosystem that meets the evolving needs of businesses and individuals alike.

A Milestone in Identity Verification

The introduction of biometric verification rules in Austria marks an important milestone in the country’s efforts to balance security and convenience in its KYC processes. As the digital landscape continues to evolve, it remains essential for regulators and businesses to work together to ensure that identity verification procedures remain effective, efficient, and secure.