Solomon Islands Takes a Step Towards AML/KYC Compliance with Electronic Know Your Customer Facility
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The Central Bank of Solomon Islands (CBSI) has made a significant step towards enhancing Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) compliance in the country by conducting a workshop on an Electronic Know Your Customer (e-KYC) facility in Honiara.
What is e-KYC?
The e-KYC process involves completing identity verification and other KYC requirements digitally, reducing costs and increasing efficiency. This digital approach to customer registration aims to improve customer due diligence processes and AML/CFT compliance.
The Workshop
The workshop was hosted by CBSI and facilitated by the Reserve Bank of Australia (RBA), with presenters from public sector, private sector, and multinational organizations. Participants from commercial banks, financial institutions, money transfer operations, government agencies, and other stakeholders attended the workshop to learn about e-KYC models used in other countries and share their experiences on current customer registration processes.
Regional Efforts
The idea for a regional e-KYC facility was initiated during the 2020 South Pacific Central Bank Governors meeting, following concerns over global de-risking practices that may reverse financial inclusion progress in the region. CBSI Deputy Governor Raynold Moveni emphasized the importance of implementing the e-KYC facility to improve customer due diligence processes and AML/CFT compliance.
Project Stages
The project involves two stages:
- Stage 1: Developing a national SIM registration database with the United Nations Capital Development Fund (UNCDF) and Telecommunications Solomon Islands (TCSI). This step is crucial, as Solomon Islands lacks a national identity system with verification capabilities.
- Stage 2: Developing an e-KYC facility that meets Global FATF standards and international best practices.
Importance of SIM Registration Database
Moveni emphasized the importance of the SIM registration database in laying the groundwork for future digitalization, digital identity, and AML/CFT compliance initiatives in Solomon Islands. The e-KYC workshop marks a significant milestone towards achieving these goals, paving the way for improved financial services and reduced risks in the country’s financial sector.
Conclusion
The implementation of an e-KYC facility is a crucial step towards enhancing AML/CFT compliance in Solomon Islands. The project aims to improve customer due diligence processes, reduce costs, and increase efficiency. With the successful completion of the workshop, Solomon Islands takes another step towards achieving its goal of improved financial services and reduced risks in the country’s financial sector.