L&M Finance Group


The new Law of Ukraine "On Prevention and Counteraction of the Legalization (Laundering) of Criminally Obtained Incomes, the Financing of Terrorism and the Financing of the Proliferation of Weapons of Mass Destruction", which will enter into force on April 28, repeals the requirements of the client’s personal presence during identification and verification by banks.
According to the official website, the National Bank of Ukraine has developed new tools and methods for remote identification, depending on the chosen model and channels for attracting a client base. It is specified that for remote identification and verification banks will have the opportunity to choose simplified models - with a number of limits on the volume of transactions and account balances, or full-fledged models. As for simplified verification, the National Bank proposed the following limits:
— up to 40 thousand UAH for a month and up to 400 thousand UAH. for a year on all accounts in one bank regarding expenditure financial transactions;
— the total balance of all accounts and electronic wallets in the bank open to the client will not exceed 40 thousand UAH.
By type of model, the following verification algorithms are presented:
Full models:
  1. verification of customer identification data using the BankID system of the National Bank and qualified electronic signature.
  2. video identification (communication using video broadcasting).
Simplified models:
  1. customer verification using the NBU BankID System.
  2. verification using a qualified electronic signature.
  3. making a payment to a separate bank account from the client’s personal account, accompanied by at least an indication of the surname, name and patronymic of the client.
  4. remote reading by the client of the data from the chip of his biometric document (for example, passport or passport in the format of an ID card) using the NFC module of the smartphone and the corresponding mobile application of the bank;
  5. verification of data from the credit history bureau with the confirmation of the client through the pass-word received from the bank to the financial phone number of the client indicated in his credit history.
It is reported that when applying some simplified mechanisms, it will be necessary to carry out photo-fixation of the client using the method of recognition of human reality (liveness detection) and with its own identification document.
All these mechanisms and models will be covered in detail in the updated Regulation on the im-plementation of financial monitoring in the banking system, the approval and implementation of which is expected before the end of April.