Another member in the Asian region looks into the centralising of KYC processes. KYC pertains to regulations on anti-money laundering through reliable identification and verification of clients.
Implementing KYC procedures with a financial institution would be beneficial because customer credentials would be stored within a trusted database. This also enables cross-sharing of information among financial institutions for more efficient banking processes.Keeping residents’ data stored into a unique centralised database could mean an easier mode of sharing cross-border information.
Currently, Hong Kong, India and Singapore are making arrangements on implementing centralised KYC processes in their respective domiciles. This however, may raise some privacy and security concerns since large amounts of confidential information are being packed into one database.
Hence, the Hong Kong government is beginning the steps to replace their ID cards with more secure ones. The process is expected to commence next year and through 2022. These updated ID cards could be used as a basis of the centralised KYC and boost Hong Kong’s Fintech position.
Author: Team FinTech Consortium