Filenews 28 December 2021 - by Theano Thiopoulou
Rules on the control of identity and the details of the customer – whether it is a natural person or a company – who wants to open bank accounts or apply for loans, without his physical presence is being attempted by the European Banking Authority. A public consultation has been launched since 10 December and will receive feedback by 10 March 2022 on the draft guidelines for the use of remote customer integration solutions.
These guidelines set out a common understanding by the competent authorities of the steps that financial sector operators should take to ensure safe and effective practices of remotely confirming customers in line with the applicable anti-money laundering and counter-financing of terrorism (AML/CFT) legislation and the EU data protection framework legislation. A public hearing will be held via teleconference on February 24, 2022 from 11:00 to 12:30.
The EBA in its text notes that financial institutions have seen a growing demand for solutions without the physical presence of customers. This trend has been exacerbated by the travel restrictions caused by the COVID-19 pandemic. As a result, the EBA considers it important for competent authorities and financial sector bodies to understand the potential of these new remote solutions to make the most of the opportunities they offer and, at the same time, to support their proper and responsible use, as well as to be aware of the ML/TF risks arising from the use of such tools and to take measures to effectively mitigate those risks.
The PROPOSALS of the EBD are not bound by the adoption of one technology over another, but they want uniform rules and assumption of responsibility for the verification of data whether it is in physical form with the customer present or not. He concludes that the in-person presence of customers in banks is now a reality, which is made more urgent by the pandemic and the change in consumer behaviour. It also notes that institutional frameworks, directives, pan-European data hubs and plans for a digital European identity exist, but they are either not fully activated or are not compatible or cannot be connected to other member states.
The document released by the European Banking Authority states, among other things, that it published a first opinion, in 2018, on the use of innovative solutions for credit institutions and included specific guidelines for the collection of proof of identity of the person and the risk factors that may accompany them. It stresses that it has a legal obligation to prevent the EU financial system from being used for the purposes of combating money laundering and combating the financing of terrorism and must lead, monitor and coordinate the EU financial sector's fight to this end.
| Fight for vulnerable adults and their rights |
Europe is trying to give a helping hand to vulnerable adults who cannot protect their rights and interests because of the alteration or inadequacy of their personal abilities. These people currently face multiple obstacles when they move abroad, buy or sell assets or simply manage their bank account in another Member State. This is because the rules governing cross-border cases (private international law rules) differ from one Member State to another. The Commission will gather evidence on the problem and its consequences, and give all stakeholders the opportunity to share their views on possible policy options. The aim of this initiative is to harmonise and simplify the legal rules for determining the court having jurisdiction in a cross-border case, the law in the case and the recognition of foreign measures. The aim is also to facilitate cooperation between EU Member States and to pursue cross-border cases. The public consultation has been launched since 21 December 2021 and will run until 29 March 2022 and will be available in all languages of Europe. The public consultation is addressed to: vulnerable adults, their relatives and legal representatives, associations and organisations representing the rights of persons with disabilities, persons who come into contact with vulnerable adults in their professional activities, such as health professionals and bank employees, practitioners of justice-related professions; including judges, notaries and lawyers, other competent authorities, social services, central authorities and services of the Member States.
