Last week, the multi-government Financial Action Task Force (FATF)
published guidance on digital payments and the use of IDs for customer due diligence (CDD). The draft report includes recommendations for anti-money laundering (AML), counter-terrorist financing (CTF), know your customer (KYC), and financial inclusion rules.
The
FATF notes that digital payments are growing by 12.7% every year, with over 700 billion transactions predicted annually by 2020. Similarly, digital ID systems are evolving rapidly and often go hand in hand with regulated electronic payments. The group has now issued guidelines for authorities on combining the two.
“Digital ID standards, technology and processes, have evolved to a point where digital ID systems are, or could soon be, available at scale. Some of these relevant technologies include: a range of biometric technology; […] artificial intelligence/machine learning (e.g., for determining validity of government-issued ID); and distributed ledger technology (DLT),” the report reads.
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