Vanuatu Regulates Identity Verification and Address Confirmation
In a move to combat money laundering and terrorist financing, the government of Vanuatu has introduced strict regulations on identity verification and address confirmation for financial institutions.
Valid Documents for Address Confirmation
According to the new guidelines, valid documents considered as proof of address include:
- Current utility bills
- Government-issued documents showing the end-user’s address
- Bank statements no older than three months
Identity Verification Process
Identity verification is not a one-time process, but rather a recurring requirement that depends on the institution’s needs and risk assessment. For instance, it is mandatory to verify identities when:
- Onboarding new customers
- Transactions exceed certain monetary thresholds
- Dealing with high-risk situations, such as individuals who may pose above normal exposure to money laundering threats
Identifying Politically Exposed Persons (PEPs)
Institutions are required to determine if their customers are PEPs, hold public offices, or exhibit higher risk profiles. To fulfill these obligations, Shufti Pro offers an Anti-Money Laundering (AML) Screening service that screens individuals’ ID attributes against global regulatory watchlists and databases.
External Due Diligence Services
Institutions are allowed to seek external services for due diligence, but must collect all necessary data from the third-party provider without undue delay. Shufti Pro offers its services as an external third-party provider in this scenario.
Record Retention Requirements
The guidelines also emphasize the importance of record retention, requiring institutions to retain data for not less than six years as part of their Anti-Money Laundering and Know-Your-Customer (KYC) obligations.
Conclusion
Overall, these regulations aim to strengthen Vanuatu’s financial sector by ensuring that institutions have robust customer due diligence processes in place to prevent money laundering and terrorist financing.