Labuan Financial Services Authority (Labuan FSA) has issued a circular stipulating the minimum regulatory
expectations placed on Labuan financial institutions (LFIs) that
have adopted e-KYC as part of their digital financial services
business operations.
e-KYC is essentially a digitalisation of the customer
identification and verification process for client onboarding. With
the acceleration in digitalisation, especially with the advancement
in technology and heightened risk exposure from the COVID-19
pandemic, organisations are fast embracing technology to meet
client expectations and their own operational needs.
One key highlight is that LFIs are allowed to choose any method
of conducting their identification or verification process through
e-KYC, as long as the e-KYC system is reliable, risk-based and
unbiased in filtering the counterparties and virtual
transactions.
