Financial Crime World

Holograms and Advanced Security Features in Djibouti’s Identity Verification Process

Djibouti has taken a significant step to enhance its anti-money laundering (AML) and know-your-customer (KYC) regulations by introducing advanced security features to ensure the authenticity of identity documents used for verification purposes. These measures are designed to prevent fraudsters from using doctored or crumpled documents, which can compromise the integrity of the verification process.

Advanced Security Features

The country’s regulatory authorities have implemented a range of innovative security features to ensure that documents are genuine and tamper-evident. These features include:

  • Holograms: Reflective colors used to verify the authenticity of passports, driver’s licenses, and identity cards.
  • Tapered edges: Unique edge design to prevent document duplication.
  • Microprinting: Tiny text or patterns that can only be read under magnification.

Timing of Verification

Identity verification is not a one-time process in Djibouti. Rather, it is required in multiple instances as per the country’s regulations. The timing of verification depends on various factors, including:

  • Type of transaction: Higher-risk transactions may require more frequent verification checks.
  • Level of risk associated with each customer: High-risk customers may require more frequent verification checks to prevent money laundering and terrorist financing.

Politically Exposed Persons (PEPs) and Enhanced Due Diligence

Djibouti’s regulations also require financial institutions to:

  • Identify PEPs: Politically exposed persons who pose a higher risk of being involved in corrupt activities.
  • Conduct enhanced due diligence (EDD): Conduct thorough background checks on these individuals.

Shufti Pro, a leading identity verification platform, offers an AML screening service that helps financial institutions comply with these requirements by screening customers against watchlists of global regulatory authorities.

Record Retention

Financial institutions in Djibouti are required to:

  • Retain customer data: For at least five years as part of their AML and KYC obligations.
  • Collect necessary information: From third-party vendors without undue delay.

By implementing these advanced security features and robust verification procedures, Djibouti is taking a proactive approach to preventing financial crime and ensuring the integrity of its identity verification process.