The bank to research reading Citizen ID Card data with a chip to authenticate customers in Vietnam

The bank to research reading Citizen ID Card data with a chip to authenticate customers in Vietnam (Internet image)

The State Bank issued Official Dispatch 7262/NHNN-TT researching the application of population data, identification, and electronic authentication in a number of banking activities.

The State Bank of Vietnam (SBV) requires credit institutions and foreign bank branches (CIs) to research and implement some of the following contents:

The bank to research reading Citizen ID Card data with a chip to authenticate customers in Vietnam

Specifically, for opening payment accounts and bank cards of individual customers, credit institutions research and implement a number of solutions to verify customer identification information, as follows:

- Integrate an embedded library (SDK) on the credit institution's mobile banking application to compare and authenticate information stored on the chip-embedded Citizen ID Card with customer information.

- Use specialized equipment to read chip-embedded Citizen ID Card data to authenticate customers at the transaction counter.

- Connect and use the customer's electronic identity account (via the VNelD application) to authenticate the customer.

- Connect to the National Population Database platform to compare and authenticate customers.

Credit institutions to research, develop plans, and have a suitable roadmap to clean up personal customer data in Vietnam

Specifically:

- Develop a plan to clean personal customer data by comparing and authenticating customer data with the National Database platform and Citizen ID Card data, with priority given to implementation first for customers who have opened payment accounts and bank cards electronically (eKYC) but have not been verified through a face-to-face meeting or have not been authenticated with the National Database platform and Citizen ID Card data.

- Implement solutions to review and compare Citizen ID Card information with customers' identity cards to update and synchronize customer information.

In addition, the State Bank also requires the following contents:

* During the process of customers making transactions via payment accounts and bank cards:

- For payment accounts and bank cards that have been opened electronically (eKYC), credit institutions strengthen solutions to check and verify customer identification information, making sure the customer making the transaction is the payment account/card holder in accordance with the provisions of Circular 16/2020/TT-NHNN amending and supplementing Circular 23/2014/TT-NHNN dated August 19, 2014 guiding the opening and use of payment accounts, and Circular 17/2021/TT-NHNN amending and supplementing Circular No. 19/2016/TT-NHNN dated June 30, 2016 regulating bank card operations.

+ For payment transactions of high value, transactions with suspicious signs or customers with a high level of risk according to the law on prevention and combat of money laundering, CIs research and apply solutions to compare and authenticate customers with Citizen ID Card data on the National Population Database platform.

+ For transactions at automatic teller machines and at transaction counters, CIs research and use specialized equipment to read chip-embedded Citizen ID Card data and other Citizen ID Card data mining and application solutions to authenticate customers performing transactions.

- For small loan lending activities, credit institutions research and have a plan and roadmap for implementing solutions to compare and authenticate customers with Citizen ID Card data, connecting to the National Population Database platform to exploit customer information (such as taxes, social insurance, business registration, etc.) in the process of customer appraisal to consider lending decisions, and facilitating the implementation of lending activities using electronic means.

- Credit institutions strengthen risk management measures during the process of customers performing transactions on payment accounts and bank cards, especially payment accounts and bank cards opened electronically (eKYC), according to the direction of the State Bank in Official Dispatch 5865/NHNN-TT and other guiding documents. In case the customer uses another mobile device (with the device registered for the mobile banking application) to perform the transaction, the credit institution must re-authenticate the customer as if authenticating the customer for the first time, in which priority is given to applying customer authentication solutions using biometric factors (if customer biometric data is available).

Diem My

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