Electronic Identity Verification (EIV)
What is EIV?
IDV is a service used to check that the clients you are doing business with are providing you with genuine documents to verify their identity. Using an EIV service helps you to meet Know Your Customer (KYC) and AML/CTF obligations. KYC is an important process for businesses and agencies to protect themselves from corruption and fraud.
Is a Selfie over a Zoom call sufficient for EIV?
Having a client hold their passport or drivers license beside them over a Zoom call is deemed by the supervisors as insufficient as is technically not EIV.
What is required by NZ regulations?
As outlined in the supervisors guide which can be found at https://www.dia.govt.nz/AML-CFT-Explanatory-Note---Electronic-Identity-Verification-Guideline-published there are various things that must be in place to allow IDV to be actioned to fulfil the requirements required in the guide and regulations.
There are two forms of allowable EIV, firstly an entity can satisfy EIV requirements from a single independent electronic source that is able to verify an individual’s identity to a high level of confidence. What does that mean? To allow this the EIV process needs to incorporate some form biometric information or information that is the equivalent to biometrics i.e. RealMe
Secondly an entity may use two reliable and independent matching sources to verify the ID of a client. How does that work?
Two independent sources must be used and should incorporate the person’s name and date of birth from one source and name from an independent second source. Both sources must be reliable, independent and match each other. Sources that the supervisors expect to be used are the likes of the DIA (Passports) NZTA (Drivers License) and other such as Credit Bureaus, companies office, Land Registry (LINZ).
When using the two independent sources the entity must still have a mechanism to link the person to the claimed identity.
Where Biometrics are not being used other forms can be used such as:
· First credit into a clients account must come from a registered NZ bank in the name of the client that cannot be altered.
· Issue a letter that contains unique reference/identifier to the client’s address that has been verified by a reliable and independent source.
· Phone the client on a number that has been verified by a reliable independent source i.e. fixed phone line via employer
What are the benefits of using EIV?
There are many benefits to using EIV such as:
· All client records are maintained in one place making auditing a simpler process
· Streamlines the onboarding process with real time verification and instant results
· Less work for any sales staff or administration (client centric)
· Easier to deal with clients that are not is the same geographic location
· Allows the entity to be confident that it is abiding by the regulations and is protecting the business from fraud by identifying the legitimacy of the documents and information shared by the entities clients. Having an EIV program in place allows businesses to comply with Know Your Customer (KYC) and AML/CFT legislation
What does it cost?
There are many providers in the market place in NZ and pricing does vary from provider to provider. Per scan costs can range from $5 per scan up to $10 per scan. Politically Exposed Person (PEP) scanning can also be done at the same time ensuring the entities are abiding by the PEP requirements. Over and above the scanning costs there can be yearly administration fees ranging from $1,000 per year to $1,500 per year.
Remote Compliance service options
Remote Compliance currently has the distribution rights to MemberCheck https://membercheck.net/id-verification/ and can provide costings and options for entities for the full range of services they provide. Please visit their website by clicking on the link above.