Biometrics could be the answer to AML

Author: Karry Lai | Published: 8 May 2018

Financial institutions are increasingly looking at embedding biometrics into their know your customer (KYC) and client due diligence (CDD) workflow. But rules surrounding personal data, privacy and cybersecurity could be in the way.

According to a market participant on the compliance space, while digital identities using biometric technology will enable financial institutions to improve customer identification and authentication through a streamlined process, which will automate and reduce onboarding costs and wait times, there are a host of hurdles that lay ahead.

Clarice Yue, counsel at Bird & Bird, said that from an anti-money laundering (AML) perspective, biometrics is crucial for two stages of the banking process: enrolment of new customers and verification of banking transactions.

"The gambling hub of Macau has also implemented facial recognition scans at ATMs"

Facial recognition technology – from facial recognition software to fingerprint identification, iris scanning to voice recognition - is used to allow banks...