Title: Solomon Islands Central Bank Hosts Successful e-KYC Workshop Amidst Global De-risking Trend

Establishment of an Electronic Know Your Customer (e-KYC) Facility in Solomon Islands

The Central Bank of Solomon Islands (CBSI) held a productive two-day workshop on the establishment of an e-KYC facility in Honiara, from October 11 to 12, 2021. Facilitated by the Reserve Bank of Australia (RBA), the event was attended by participants from various sectors, including commercial banks, financial institutions, government agencies, and multinational organizations.

Benefits of e-KYC Process

The e-KYC process digitally verifies customers’ identities and completes KYC requirements remotely. This results in cost savings and increased efficiency.

Insights from Other Nations

Workshop participants gained insights into different e-KYC models utilized in other countries and discussed potential risks and strategies for adapting to these changes.

Global Trend of De-risking and Importance of e-KYC Facility

CBSI Deputy Governor Raynold Moveni emphasized the importance of the e-KYC facility in the bank’s annual schedule. He noted that the push to explore a regional e-KYC solution came in response to the global trend of de-risking.

Impact on Financial Inclusion

Moveni explained that implementing the e-KYC facility would enhance customer due diligence processes and AML/CFT compliance. It would also lower remittance costs, reduce legal compliance risks, and support correspondent banking services.

Partnerships and Initiatives for an e-KYC Facility in Solomon Islands

Recommendations from the regional project saw South Pacific central banks prioritizing individual countries’ strategies to establish e-KYC capacity. Solomon Islands initiated its efforts by partnering with the United Nations Capital Development Fund (UNCDF) and Telecommunications Solomon Islands (TCSI) to create a national SIM registration database.

Necessity of a National Identity System

The absence of a national identity system with verification capabilities in Solomon Islands necessitated the development of the SIM registration database as a prerequisite for the development of a viable e-KYC facility. After completing the first stage – the development of the SIM registration database – CBSI will investigate potential avenues to create a Solomon Islands e-KYC facility consistent with Global FATF standards and international best practices.

Long-term Benefits

Moveni believes that this work should also lay the groundwork for national digitalization, digital identity, and AML/CFT compliance projects in Solomon Islands.

For more information about the Central Bank of Solomon Islands and its initiatives, please visit their website at www.cbsi.com.sb. You can also contact them at (21791) or Email: info@cbsi.com.sb.