Asia: Bank Negara Regulates KYC for Remittance

The Bank of Negara Malaysia (BNM) it will introduce electronic know-your-customer (e-KYC) as its latest innovation in the financial world. KYC is a process required of financial institutions put in place by Central Banks to counter the financing of terrorism and prevent money laundering. KYC requires the financial institution to identify and verify information about the clients, both at point of onboarding and on their day-to-day transactions.The Bank of Negara Malaysia (BNM) it will introduce electronic know-your-customer (e-KYC) as its latest innovation in the financial world. KYC is a process required of financial institutions put in place by Central Banks to counter the financing of terrorism and prevent money laundering. KYC requires the financial institution to identify and verify information about the clients, both at point of onboarding and on their day-to-day transactions.

While the KYC process is typically done face-to-face or over the phone currently, BNM is looking to introduce e-KYC, an electronic and paperless method of conducting the KYC process that allows the process to be conducted remotely, through a mobile application. This e-KYC will first be applied for large remittances and is expected to be finalised in October.

With all things being digitized, e-KYC for remittances by BNM will certainly be a step forward to pave way for more innovation in the financial world. RFi Group data from the Malaysia Retail Banking Council (17H1), shows that about 22% of individuals in Malaysia have sent or received funds internationally in the past one year with the affluent market being more like to be sending regular remittance. The innovations such as the e-KYC by BNM, would ease the remittance process and could increase the incidence of sending money overseas in the near future.

Upcoming Events
13
Nov
19
ARCA National Conference 2019
Benowa, QLD, Australia
See all upcoming events
map4
Subscribe to receive insights delivered straight to your inbox
Latest news, unbiased expert analysis and insights across banking and finance