Identity Verification Crucial for Businesses Operating in Djibouti
In an effort to combat money laundering and terrorist financing, the government of Djibouti has emphasized the importance of identity verification for businesses operating within its borders. According to new regulations, companies must verify the identities of their customers, employees, and other stakeholders to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements.
Accepted Documents
The government has specified a range of documents that can be used as proof of address for identity verification purposes. These include:
- Current utility bills
- Government-issued documents
- Bank statements
All of these documents must be no more than three months old.
Multiple Instances of Verification
Identity verification is not a one-time process, but rather a recurring requirement that businesses must adhere to. This includes:
- Verifying the identities of new customers and employees
- Conducting regular checks on existing clients and staff
Politically Exposed Persons and Enhanced Due Diligence
The regulations also require businesses to identify Politically Exposed Persons (PEPs) and conduct enhanced due diligence measures to mitigate the risks associated with these individuals. Shufti Pro, a leading AML screening service provider, offers a solution that screens against global watchlists and databases of compromised PEPs and sanctioned individuals.
Reliance on External Services
In cases where businesses lack the resources or expertise to conduct identity verification and AML/KYC obligations in-house, they may choose to rely on external services. However, it is essential to note that clients will remain liable for maintaining regulatory compliance and fulfilling AML and KYC obligations.
Record Retention
The government has also emphasized the importance of record retention, requiring businesses to retain data for not less than five years. This includes:
- Due diligence data collected from third-party service providers
- Data must be collected without undue delay
Conclusion
In conclusion, identity verification is a crucial requirement for businesses operating in Djibouti, with multiple instances and heightened vigilance necessary to ensure compliance with AML and KYC regulations. By understanding these requirements and implementing the necessary measures, companies can mitigate the risks associated with money laundering and terrorist financing, while also maintaining a strong reputation and ensuring regulatory compliance.