The Use of Modern Technologies in the Framework of AML Customer Due Diligence Process including the Risk Analysis
Abstract
The identification of the client (customer due diligence) is the basic duty of obliged entities (mainly banks and other financial institutions) according to the legal provisions stipulating the anti-money laundering and counter terrorism financing measures. Historically the basic method of identification is so called face-to-face identification.
This method could be replaced with other processes of identification that could be connected with higher risks. The development of modern technologies has brought the large scale of other possibilities of identification based on these technologies and obviously it is not possible to ignore this recent development.
In the framework of this article the current legal provisions concerning the identification of the client are described and assessed together with the analysis of their risk aspects. Moreover, the currently prepared amendment of the AML act and the comparison with other foreign legislations are reflected.