Identity Verification Crucial for Businesses Operating in Djibouti

In an effort to combat money laundering and terrorism financing, the government of Djibouti has implemented strict regulations on identity verification for businesses operating within its borders. The country’s financial regulatory body requires companies to conduct thorough identity verification processes to ensure compliance with anti-money laundering (AML) and know-your-customer (KYC) requirements.

Acceptable Documents

According to the regulations, the following documents are considered acceptable proof of address in Djibouti:

• A current utility bill (gas, electricity, telephone or mobile phone bill) issued within the last three months;
• Government-issued documents containing the end-user’s name and address;
• Bank statements not older than three months, showing the end-user’s name and address.

Ongoing Verification

In contrast to a one-time verification process, identity verification in Djibouti is an ongoing requirement. Businesses must conduct multiple instances of identity verification as per the recommendations outlined by financial regulators. The timing of these verifications depends on various factors, including:

• Type of transaction data being processed
• Level of risk associated with each customer

Politically Exposed Persons (PEPs)

Under enhanced due diligence requirements, businesses operating in Djibouti are required to determine if their customers are PEPs, hold public office or exhibit a higher-risk profile. To fulfill this obligation, companies can utilize Shufti Pro’s AML screening service, which screens an individual’s selected ID attributes against global watchlists and databases of compromised PEPs and sanctioned individuals.

Record Retention

Finally, businesses operating in Djibouti are required to retain data for a minimum period of five years as part of their AML and KYC obligations. This includes:

• Collecting necessary information from third-party service providers without undue delay
• Failure to comply with these regulations can result in severe penalties and reputational damage.

Conclusion

In conclusion, identity verification is a critical component of anti-money laundering and know-your-customer requirements in Djibouti. Businesses operating within the country must prioritize ongoing verification processes, utilize external services as necessary, and maintain accurate records of their customers’ information to ensure compliance with regulatory obligations.