To strengthen risk management for opening a payment account by electronic means in Vietnam

To strengthen risk management for opening a payment account by electronic means in Vietnam (Internet image)

The State Bank of Vietnam of Vietnam issued Official Dispatch 5865/NHNN-TT dated August 24, 2022, requesting the strengthening of risk management measures for opening and using payment accounts.

1. Measures to strengthen risk management in the process of opening a payment account by electronic means in Vietnam

In Official Dispatch 5865/NHNN-TT, the State Bank of Vietnam requires banks and foreign bank branches to:

In the process of opening a payment account (accounting), they must strictly implement control steps in checking and verifying customer information by opening an account through the application of electronic methods, methods, and technologies to identify and verify customers to:

- Compare and ensure that the information and biometric factors on the identity document are matched with the customer's biometric information and factors (such as matching with the customer's photo or video recording));

- Promptly detect and prevent suspicious acts or signs of impersonating, interfering, editing, or falsifying the verification of customer identification information.

Pay special attention to the following suspicious behaviors and signs:

(i) impersonate, forge, or edit identification information (including digitally editing photos of identification documents);

(ii) intervene in the information system to change or correct customer identification information;

(iii) the customer opens an account that is not a living entity due to the use of still images, images through face editing software, cropped video recordings, deepfakes, or 3D masks;

(iv) the case of opening many different accounts with inconsistent customer identification information, such as:

+ Same biometric element but using different information about Full name, citizen identification number or identity card number or passport number, date of birth,...

+ Same identification information but different biometric factors,...

2. Measures to strengthen risk management in the process of promoting a payment account using electronic means in Vietnam

In the process of opening and using electronic accounts, Official Dispatch 5865/NHNN-TT requires banks and foreign bank branches to regularly self-inspect and assess the safety level. security of the solution to identify and verify customers by electronic means (eKYC).

In case of detecting signs of insecurity and safety, technical weaknesses, or technological solutions that may lead to criminals taking advantage of and exploiting them, authorities must immediately suspend service provision to upgrade, modify, and complete the solution and only provide services associated with eKYC solutions when ensuring the security, safety, and confidentiality of the solution.

Banks and foreign bank branches are responsible for arising risks (if any) in case there is a loss of security, safety, and security for the eKYC solution during the process of opening an electronic account in our system.

In addition, the State Bank of Vietnam also required research and an implementation roadmap to connect with the National Database on Population, exploiting chip-based citizen IDs and electronic identification accounts in order to serve accurate verification of information identifying customers who open and use a payment account and proceed to clean the data warehouse of customers who open a payment account in their system when conditions permit.

More details can be found in Official Dispatch 5865/NHNN-TT issued on August 24, 2022.

Van Trong

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