The JFSC report on businesses using Electronic Identification
The Jersey Financial Services Commission have just posted their examination results on the use of electronic identification. In this examination they questioned 25 businesses such as fund services business, investment business, trust company business (TCB), lawyers, accountancy firms and lenders.
The report showed only two trust company businesses were using any form of electronic identification. In order to implement the electronic identification the examination found that both businesses had to implement new systems, procedures and update their Business Risk Assessments to reflect the risks of using E-ID and the controls that had been implemented to manage those risks. The other companies identified their reasons for not using such tools was due to not suiting the current business model, not being suitable for how they handle customer due diligence or the business not having adequate systems in place to support it.
With the increase of business activities being undertaken online particularly due to COVID-19. It is expected that the use of electronic identification will rise over the coming years. The JFSC presented a webinar on COVID-19 implications for customer due diligence, but this still has relevance on the uses of electronic identification and the technology that can be used.
The link to the examination can be found here.