Hungary Removes Restrictions On Selfie-Based KYC In Financial Services

In October 2019, Hungary removed important restrictions on the so-called non-real-time customer due diligence (KYC) conducted by service providers such as credit institutions and financial institutions.

The non-real-time KYC is one of the remote and electronic methods of KYC recognised by the Hungarian regulator. It is often used by fintech companies and by some of the traditional banks as well. In a non-real-time KYC, the customer provides photographs of their face ("selfies") and their identity document. The customer sends these photographs to the service provider via an audited channel of electronic communication and the service provider then uses them to conduct the KYC. The service provider informs the customer about the result of the KYC within two banking days.