PT. Cakrawala Data Integrasi, as the biometric solutions company interested on the application of Bangladesh Financial Intelligence Unit (BFIU) issued electronic know-your-customer (e-KYC) guidelines, paving the way for bringing people under the financial services without their physical presence at financial institutions. As per the definition given by the BFIU, the e-KYC is a digital process where financial institutions are allowed to open customers’ accounts by filling in a digital form, taking photograph on the spot, and authenticating a customer’s identification data.
The guidelines will be applicable to the financial institutions including banks, non-bank financial institutions, insurance companies, capital market intermediaries, MFS, DFS and the other companies licensed by the Bangladesh Bank.
Digital financial products and services, and digital identity solutions have developed significantly over the last several years and have major potential to facilitate access to basic services for unserved and underserved people and businesses, especially in emerging and developing countries, the guidelines said.
Besides, promoting fintech, reducing cost of customer on boarding and enhancing growth of financial inclusion were, among others, the reasons for the guideline issuance.
Based on the customers’ risk exposures, the BFIU classified e-KYC into two – simplified e-KYC and regular e-KYC.
Under the simplified e-KYC, digital financial services — mobile financial services, payment service providers and operators, and fintech companies — would be allowed to be registered for those services.
Besides, financial inclusion products and agent banking products could be offered upon simplified e-KYC registration.
Banking products like deposit or withdrawal not exceeding Tk 1 lakh, term deposit up to Tk 10 lakh and special deposit scheme with maturity value up to Tk 10 lakh can be offered upon simplified e-KYC. Banks offering products to customers beyond the limit will have to be registered through regulator e-KYC.
Non-banking financial intuitions would be allowed to offer any types of products not exceeding Tk 10 lakh upon completion of simplified e-KYC. However, the products exceeding the Tk 10 lakh limit must be offered upon regular e-KYC completion.
The limit for the stock market was set at Tk 15 lakh and for life insurance premium at Tk 2.5 lakh and for non-life insurance premium at Tk 20,000-2.5 lakh. Once the limits are exceeded, brokerage firm or the insurance company will have to ensure regulator e-KYC of the customers.
The regular e-KYC would be required for agent banking customers who perform transactions with branches as regular customers. However, with e-KYC agents as an extension of banks and other financial institutions, digital financial inclusion can be raised in the country's economy.
As Indonesia shifts to the horizon of digital movement, PT Cakrawala Data Integrasi is delighted to work with the Indonesian Ministry of Home Affairs to be part of a biometric solution to escalate the archipelago's technology. Translating the complexity of human biometrics into sophisticated algorithms and through the Platform Bersama enables all sectors, both public and private, to utilize of e-KYC from more than 198 million population data recorded in Dukcapil. Contact us for further information.