e-KYC Exposure Draft

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  • December 16, 2019

e-KYC Exposure Draft

In a move to push forward the financial technology agenda and to increase penetration of digitalisation in the nation, Bank Negara Malaysia (Central Bank of Malaysia) (BNM) has issued an exposure draft on the requirements and guidelines to implement e-KYC for on-boarding individuals to the financial sector. The exposure draft covers various aspects including the role and responsibility of the board of directors of the relevant company, the process of ensuring secured and effective identification and verification of a customer’s identity, minimizing false acceptance rates and reporting requirements.

BNM intends to implement a “file-and-use” system, which means that a company may implement its e-KYC solution after filing with BNM and 14 business days have lapsed. Companies intending to implement e-KYC solution must also observe related regulations including anti-money laundering guidelines and policy documents.

The exposure draft is available to the public on BNM’s website. Comments are to be submitted by 17 February 2020.