The world is moving towards digitalization and its having both a positive and negative impact on businesses. On one hand, with the rise of cybercrime, and cybercrime damages costing the world roughly $6 trillion in 2021, regulators and authorities are looking into solutions that can ensure highest security standards. On the other hand, completely automated processes, that can be used remotely, are a new requirement amongst users.
The Austrian Financial Market Authority (FMA) made an important step and changed its online identification ordinance. The Austrian Anti-Money Laundering Act (Austrian AMLA) has been amended to allow for the use of a fully automated biometric process for remote identity verification. The new process allows banks and other AML-required companies to comply with Know Your Customer (KYC) requirements using a variety of remote identity verification methods. This is a positive development not only for users, but also for companies, who can now offer quicker processes and achieve better conversion rates.
According to the proposed amendment, biometric verification criteria must meet current state-of-the-art technology and offer the same level of security as an “in person” identity. This procedure involves technical requirements ranging from ID document security feature checks to biometric capture or Liveness Detection, which can be verified via video recording. From January 2023 onwards, a photo ID must be verified by reading the electronic security chip (NFC chip) under the current contingency under the new amendment.
IDnow is constantly working with the authorities, regulators, and European standardization working groups like IDO Alliance from identity verification to European digital identity. IDnow is also a member of Hyperledger, W3C, and Linux Foundation, to work towards a safe, modern identity ecosystem and to ensure a superior platform for all compliance needs.