Central Bank Outlines New Guidelines for Customer Electronic Registration
The Central Bank has issued a set of instructions aimed at enhancing customer electronic registration processes and ensuring compliance with anti-money laundering and counter-terrorism financing regulations.
Effective Governance Arrangements Required
According to the new guidelines, companies registered with the Central Bank are required to establish effective governance arrangements to ensure the accuracy and security of customer data. This includes:
- Verifying the provision of appropriate policies and procedures for customer electronic registration
- Developing a comprehensive framework for risk management relevant to financial or banking services provided in this context
The board of each company is also responsible for ensuring prior determination and assessment of risks related to customer electronic registration, including:
- Money laundering
- Terrorism financing
- Cybersecurity risks
- Outsourcing to third parties
Additionally, companies must develop measures and procedures necessary to mitigate these risks to acceptable levels.
Risk Assessment and Management Crucial Aspects
The guidelines require companies to consider various factors when determining the financial or banking services they can provide to electronically registered customers, such as:
- Type of customer
- Geographical areas
- Distribution channels
- Risk level
Companies must also develop measures and procedures necessary to mitigate risks associated with providing these services.
Outsourcing Arrangements
The Central Bank has emphasized the importance of outsourcing arrangements for customer electronic registration procedures. Companies are allowed to outsource these procedures to third parties, provided that they meet certain conditions, including:
- Having a qualified company with access to relevant electronic systems
- Websites, or databases
In addition, companies must ensure that their relationship with third-party providers is governed by a written contract that covers key issues such as:
- Anti-money laundering and counter-terrorism financing requirements
- Data protection
- Confidentiality
Compliance Deadline
The Central Bank has given companies six months to adjust their status according to the new guidelines. Failure to comply may result in penalties or even prevention from continuing to register customers electronically.
Key Points:
- Companies must establish effective governance arrangements for customer electronic registration
- Risk assessment and management are crucial aspects of customer electronic registration
- Outsourcing arrangements must meet certain conditions, including access to relevant electronic systems
- Companies must ensure compliance with anti-money laundering and counter-terrorism financing regulations
- Failure to comply may result in penalties or prevention from continuing to register customers electronically