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Taiwan FSC to Ease Authentication Rules through Biometric Verification

Richard Marley
September 10, 2021
2 minutes read
367

According to new rules, banks will be using biometric authentication methods to fulfil ID authentication requirements for web-based loan applications.

The Financial Supervisory Commission (FSC) in Taiwan is reportedly seeking to ease regulations on online consumer lending in banks, in an attempt to create a comprehensive digital banking environment.

Currently, strict identity authentication protocols apply to internet-based loan applications as compared to those applied at a physical branch. The requirements previously included verification of identity through a video conference or the use of encrypted digital tokens.

Under the new regulation, an end-user’s identity will be verified through the use of biometric data, such as the verification of an individual’s facial features, fingerprints, or retina. The same biometric identifiers would also be used for the purpose of identification when visiting physical branches.

The new rules would only apply to consumers who already have a digital savings account at the bank, with authentication through a credit card or another bank account.

The FSC states that by the end of June, 3.3 million individuals had eligible digital savings accounts, most of which were opened at Rakuten International Commercial Bank and Line Bank Taiwan – Taiwan’s two internet-only banks.

It was further added that such accounts have an upper limit on individual transfers of NT$10,000, while the daily transfer amount is capped at TNT$30,000.

The use of biometric technology for identification accurately verifies customers, ensuring that the bank is safeguarded against frauds such as identity theft and account takeover. According to the FTC (Federal Trade Commission), bank fraud increased by 52.4% compared to 2019. Since biometric data is unique to each individual, it serves as a better alternative to traditional identity verification methods.

Disclaimer: No warranty is herein provided that the information contained in this document is accurate, up-to-date, and/or complete. In no circumstance(s), does such information constitute legal or any other advice. Any person who intends to use, rely, pass-on, or re-publish the information contained herein in any way is solely responsible for the same. We suggest to verify the information and/or obtain expert advice independently if required.

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UK Publishes First National Risk Assessment of Proliferation Financing
The UK is at a high risk of proliferation financing for Korea and Iran, while UK financial institutions remain the main target.

The UK has published its first national risk assessment (NRA) of proliferation financing risks, following the collection of views and evidence from the government, private sector, and academic and research partners, highlighting the proliferation financing risks facing the UK.

The UK is one of the first jurisdictions to carry out such an assessment.

While the UK currently has robust practices in place for combating proliferation financing activities, malign actors involved in proliferation financing seek to exploit the UK’s stability in the global economy and international financial system. The act involves the use of funds for facilitating chemical, biological, radiological, and nuclear (CBRN) programmes which pose a threat to the UK’s national security objectives and threaten international peace.

The key findings of the proliferation financing NRA have been identified as the following:

The UK’s financial sector is at high risk from proliferation actors. The UK’s financial services industry, particularly the banking and insurance sectors, is especially at risk

The Democratic People’s Republic of Korea (DPRK) and Iran are the most significant proliferation financing actors at the state level

The private sector has limited awareness regarding proliferation financing compared to other risks, such as money laundering and terrorist financing

The notice issued by the UK government states that “a lack of awareness of proliferation financing in parts of the UK economy can lead to a lack of understanding of how certain industrial products, for example, may be manipulated for hostile use or for use in a CBRN programme”.

Despite the above-mentioned threats, the NRA highlights the robust counter-proliferation legal framework in place in the UK that protects the country from proliferation financing.

The UK’s autonomous financial sanctions regimes targeting CBRN proliferation, as well as other regulations in the UK, including UN sanctions regimes, export control regimes, and other tools available to the UK Government, limit opportunities for proliferating actors to exploit the UK to obtain financing for CBRN capabilities.

The full assessment can be viewed here.

Suggested Read: FATF Issues New Guidance on Mitigating Proliferation Financing Risk

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Acquire registries of the company to get updated information on the beneficial ownership of the company (the Registry Approach)

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Transaction monitoring must also verify the source of funds and the region they are being transferred to/from

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Corporate Transparency Act in the US

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FinCrime through shell companies and imposters has been a problem for the corporate sector for years. Money launderers that pretend to be potential investors and shell companies approaching with fascinating partnership opportunities has become the oldest trick in the book. Unfortunately, many companies still fall prey to these activities, resulting in hefty financial losses, exposure of confidential data, and a damaged brand reputation. With numerous laws in place to combat money laundering and terror financing, there must be an adequate solution in place for screening every entity before developing any business relationships. Shufti Pro’s AI-backed business verification is what every firm needs at the moment. It will not only help you screen partners and intermediaries, but also assist you in staying compliant with the rigid KYB regulations.

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Taiwan FSC to Ease Authentication Rules through Biometric Verification

Regulatory Approach to Merchant Onboarding

FATF’s Recommendations

6AMLD in the EU

Corporate Transparency Act in the US

How Shufti Pro is Helping Businesses Onboard Legitimate Merchants

In a Nutshell…

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.

Taiwan FSC to Ease Authentication Rules through Biometric Verification

What is Merchant Verification?

Regulatory Approach to Merchant Onboarding

FATF’s Recommendations

6AMLD in the EU

Corporate Transparency Act in the US

How Shufti Pro is Helping Businesses Onboard Legitimate Merchants

In a Nutshell…

Let’s prove your

customer’s identity

with Shuftipro.

Let’s prove your customer’s

identity with Shuftipro.