Here is the converted article in Markdown format:
Malawi’s Identity Verification: A Comprehensive Guide
As the financial landscape continues to evolve, it is crucial for businesses in Malawi to prioritize identity verification and adhere to the country’s regulations. In this article, we will explore the essential security features that are used to verify documents, the timing of verification, and the measures required to mitigate Politically Exposed Persons (PEPs) and Enhanced Due Diligence (EDD).
Security Features
Malawi’s identity verification process relies on several advanced security features to ensure authenticity. These include:
- Holograms: Three-dimensional holographic images that are difficult to reproduce.
- Tapered/Crumpled Edges: Unique edge patterns that prevent tampering or duplication.
- Doctored Elements: Altered elements that detect alterations or forgeries.
- Form Inconsistencies: Discrepancies in document formats or layouts that indicate a fake document.
- Document Expiration: Timely expiration dates that ensure documents are current and valid.
- MRZ (Machine Readable Zone): Data encoded on the document that can be read by machines, reducing human error.
Address Verification
In addition to identity verification, address verification is also crucial in Malawi. The following documents are considered as proof of address:
- Current utility bills: Gas, electricity, telephone, or mobile phone bill issued within the last three months.
- Government-issued documents: Documents containing the end-user’s address and name.
- Bank statements: Statements not older than three months, containing the end-user’s address and name.
Timing of Verification
Identity verification is not a one-time process in Malawi. It is required in multiple instances as per recommendations. The application and choice of when to deploy identity verification procedures depend on your requirements and conveyance to Shufti Pro. You are expected to pursue identity verification when onboarding a new customer, especially when dealing with transaction data.
Politically Exposed Persons (PEPs) and EDD Measures
Malawi’s Enhanced Due Diligence regulations require you to determine if your customer is a Politically Exposed Person, holds a public office, or exhibits a higher risk profile. Shufti Pro provides an AML Screening service that screens an individual’s selected ID attributes against watchlists of global regulatory authorities, foreign and domestic databases, compromised PEPs, and sanctioned individuals.
Reliance on External Services
Malawi regulation states that you may seek the services of a third party to apply measures of due diligence. Regulations also require you to collect all such data (Diligence Information) from the third party without undue delay. In this scenario, Shufti Pro will be the external third-party service provider.
Record Retention
As per Malawi’s regulations, you are required to retain data for not less than seven years. This is a part of your AML and KYC obligations for due diligence. In cases where this information is processed, collected, and managed by a relevant third party, you are liable to collect all necessary information (Due Diligence Data) from the third party without undue delay.
By understanding Malawi’s identity verification requirements, security features, timing of verification, PEPs and EDD measures, reliance on external services, and record retention, businesses in the country can ensure compliance with regulations and maintain a robust anti-money laundering (AML) and know-your-customer (KYC) framework.