Investigation into the Authenticity of Maldives’ Identity Verification Documents Raises Concerns
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A recent review of identity verification documents in the Maldives has sparked concerns over their authenticity. The investigation, conducted by a leading anti-money laundering (AML) and know-your-customer (KYC) solutions provider, Shufti Pro, found several irregularities in the documents used to verify identities.
Security Features Missing or Compromised
The report revealed that several security features typically used to ensure the authenticity of identity documents were missing or compromised. These included:
- Holograms
- Tapered/crumpled edges
- Doctored elements
- Form inconsistencies
- Document expiration dates
- MRZ (Machine Readable Zone) codes
- Reflected colors
- Microprinting
Fake and Tampered Documents Found
The investigation also found that some documents presented as proof of identity and address were actually fake or tampered with. This raised concerns over the effectiveness of the Maldives’ AML/KYC regulations in preventing money laundering and terrorist financing.
Documents Required for Verification
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The Maldives’ AML/KYC regulations require businesses to verify the identity and address of their customers using certain documents, including:
- Valid passport
- Valid driver’s license
- Passport card
For address verification, businesses are required to accept documents such as:
- Current utility bill (gas, electricity, telephone or mobile phone bill)
- Document issued by a government department showing the customer’s address
- Bank statement (no older than 3 months) showing the customer’s address
Timing of Verification
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Identity verification is not limited to a one-time process and must be repeated in multiple instances as per regulations. The timing of verification depends on the business’ requirements and its conveyance to Shufti Pro.
Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD)
Businesses operating in the Maldives are required to determine if their customers are PEPs or exhibit a higher risk profile. Shufti Pro provides an AML screening service that screens individuals’ ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
Reliance on External Services
In the absence of explicit regulations, clients may seek the services of a third party to fulfill their AML/KYC obligations. However, the client remains liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
Businesses operating in the Maldives are required to retain data for at least five years as part of their AML and KYC obligations. In cases where this information is processed, collected, and managed by a third-party service provider, businesses must collect all necessary information (Due Diligence Data) from the third party without undue delay.
Conclusion
The investigation highlights the importance of strict regulations and robust verification processes to prevent money laundering and terrorist financing in the Maldives.