The Cyprus Securities and Exchange Commission (CySEC) published the Policy Statement on Tuesday regarding the new rules for remote customer identification (Digital Onboarding), aiming to enhance the due diligence process through electronic methods (Policy Statement PS-01-2024).

According to the announcement, CySEC finalized the Policy Statement after considering the views submitted by stakeholders during the Public Consultation PC-02-2020. CySEC also took into account the European Banking Authority’s Guidelines on the use of remote customer identification solutions under Article 13(1) of Directive (EU) 2015/849, implemented in October 2023.

Among other provisions, obligated entities under the Prevention and Suppression of Money Laundering and Terrorist Financing Law of 2007 can use solutions to verify the identity of remote customers based on a risk-based approach.

Obligated entities must conduct a risk assessment before using remote identification solutions and inform CySEC in advance of their intention to use such solutions.

Additionally, a new definition of "identification document" has been introduced, expanding the acceptance to include documents other than passports.

The obligation to collect documents confirming the customer’s address remains. However, confirming the address during the collection of copies of original documents through remote identification solutions is now feasible.

Questions regarding the content of the Policy Statement can be submitted to the CySEC Policy Department via email at [email protected].