Guidelines regulating the use and performance of remote customer onboarding were published recently by the European Banking Authority. The guidelines are designed to ensure fraudulent attempts to access accounts can be differentiated from genuine authentication attempts during the onboarding process, in order to mitigate anti-money laundering.
It aligns with common european standards, covering customer due diligence during onboarding and authentication as well as what requirements onboarding solutions should meet before being acquired.
The expectations of financial institutions differs across the member states, however the guidelines give a broad view of what forms of digital documentation are acceptable to use for remote customer onboarding and the scenarios when it is appropriate to use third-party data during onboarding.
Financial entities should set out policies and procedures that state providing a general description of the onboarding tools acquired, the situation where they can be used and which processes are fully automated or require human intervention.
A description of regular training should also be provided to enhance staff awareness of how to use a remote customer onboarding solution, the risks associated and the policies and procedures implemented to reduce such risks.