Moldova boosts remote identification for business, finance and public sectors
Date: 16/06/23
The Republic of Moldova has advanced the use of remote identification of customers, by improving legislation and launching the development of technological platforms. Legislative amendments clarifying the application of eKYC (electronic know your customer) in the financial sector will come into force from 1 July 2023. In addition, the e-Governance Agency launched a project to develop a multi-purpose eKYC technological platform. These changes will support proliferation of the digital economy infrastructure, online transactions and remote working in Moldova, and the development of online businesses, online financial services and digital public services.
The project to create an eKYC digital platform was launched on 21 March 2023 by the Secretariat of the Economic Council to the Prime Minister and the eGovernance Agency of Moldova, with the support ofEBRD (European Bank for Reconstruction and Development) and the UK Government’s Good Governance Fund. The creation of the eKYC platform – along with an eNotary platform – is an important component of the process that should enable investors, including foreigners and those from the Moldovan diaspora, to open and administer a company in Moldova from any corner of the world.
The new legislative amendments will provide a foundation for these developments, allowing the extensive use of remote customer identification methods by electronic means. This will enable all operations with customers to be carried out online, facilitating interactions between financial institutions, businesses, public services and their customers, saving time and reducing costs.
On 30 March 2023, the Parliament of the Republic of Moldova voted to remove legal constraints, ensuring the possibility of remote business administration, with the help of digital tools. The draft law on contactless business in Moldova addresses the technological aspects of remote identification and remote interaction with a variety of public and private entities, as well as aspects of conducting economic activity and providing remote work, including by diaspora and foreign investors.
Current regulation is insufficient to allow the use of non-face-to-face customer identification procedures. This is an impediment for Moldovan citizens abroad when initiating business relations or carrying out transactions that require the physical presence of the beneficiary, such as with banks, public institutions, public notaries, etc. In the public sector, where services are migrating online, remote identification is of increasing importance to ensure end-to-end digital delivery of services.
Improving the regulatory framework with reference to eKYC remote identification procedures, especially at the level of primary legislation, will support increasing digitisation of the process.
It is worth mentioning that Moldova transposed the European practices on digital remote identification from the eIDAS perspective – the EU regulation on electronic identification, authentication and trust services for electronic transactions in the European Single Market (Law 124/2021) – and AMLD, the Anti-Money Laundering Directive.
The National Bank of Moldova (NBM) welcomed the legislative amendments, which will help prevent and combat money laundering and terrorist financing. According to the NBM Deputy Governor Vladimir Munteanu, eKYC allows an efficient way to verify a customer’s identity by digital means, which facilitates customers’ access to financial services. However, as with any new technology, there are potential risks and concerns that must be addressed. “This is the reason why it is essential that e-KYC is effectively regulated to ensure the safe use of financial services and products”, he said.
The new legislation enter into force on 1 July 2023.
The joint project ‘Creation of eKYC and eNotary Universal Technology Platforms’ will be implemented by the eGovernance Agency with the support of the European Bank for Reconstruction and Development and the UK Government’s Good Governance Fund. Read more about the project launch and related Memorandum of Understanding.
We use cookies on this site to improve your website experience, to enhance site navigation and analyse site usage. By clicking “Accept all cookies” you consent to our use of cookies.
You can find out more about which cookies we are using or adjust your cookie settings in the Cookies policy.
Functionality Cookies
Functionality cookies, which are essential to the functioning of the website. These cookies also which help us measure the website’s performance and improve your experience, as well as remembering any settings you might have selected.
If you disable this cookie, we will not be able to save your preferences. This means that every time you visit this website you will need to enable or disable cookies again.
Advertising/targeting cookies
Advertising/targeting cookies, which we use to track user activity and sessions so that we can deliver a more personalized service, and (in the case of advertising cookies) which are set by the third parties with whom we execute advertising campaigns and allow us to provide advertisements relevant to you. These are optional cookies and users can choose to opt out at any moment.