The recently proposed amendments to the 4th Anti-Money Laundering Directive (4AMLD) introduce a number of measures, one of which aims to provide additional technical clarifications and full consistency with the policy provisions in related areas, such as the ones on electronic identification.
As 4AMLD provides for the parties to a transaction and/or a payment (whether natural or legal persons) to be properly identified, in the digital environment electronic identification and trust services becomes very relevant, e.g. when opening bank accounts or accessing funds and/or tracing electronic transactions. The specific provisions on electronic identification and trust services are laid down in Regulation (EU) No 910/2014 (the "eIDAS Regulation") and the recently proposed amendments to 4AMLD ensure, among others, the alignment with eIDAS Regulation provisions on the mutual recognition of notified eID schemes and means. In particular, the amendments introduce the possibility of identifying the customer and verifying the customer's identity on the basis of documents, data or information obtained from a reliable and independent source, including, where available, electronic identification means as set out in the eIDAS Regulation. Also, the original 4AMLD provisions that make exclusively reference to "original documents or copies" are amended in order to embrace electronic documents. Furthermore, the reference to the use of electronic signatures as a possible "safeguard" when non face-to-face business relationships or transactions are taking place is amended since, under eIDAS, e-signatures are not considered anymore as authentication means. The cross-border mutual recognition of e-identification means is provided via new specific rules (based on notification, assurance levels, etc.). When adopted by colegislators, all this will greatly facilitate the cross border use of eID means for meeting the requirements of 4AMLD in fully digital onboarding processes.
Would you like to know more, check the text of 4AMLD at http://europa.eu/!NY84Y