BOJ Leads Initiative to Develop Centralised eKYC Public Utility System

• The Bank of Jamaica (BOJ) is currently leading an initiative to develop a centralised electronic Know Your Customer (eKYC) public utility system, which will streamline and simplify the process for opening a bank account.
• This will simplify the process for Jamaicans who wish to transfer their accounts to the bank that offers the best services and products. Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, disclosed a statement in the House of Representatives, on Tuesday (July 9).
• “In such a system, the customer information required for various banking transactions is stored digitally in a database that is kept securely and confidentially by a central trusted authority. When a customer is conducting business with any financial institution, that institution can access the customer’s information immediately, verify that the person is exactly who they say they are, and complete their transaction in minutes, not days or weeks,” he added.
• Clarke informed that the product is expected to be realised within the next two years, while adding that the system will achieve several objectives. “By empowering account holders, it will boost competition within the banking sector, realise essential national digital and financial inclusion goals, while at the same time modernising regulatory oversight,” the Minister noted.
• He argued that this simplification will also boost compliance with anti-money laundering (AML) and countering the financing of terrorism (CFT) laws and regulations across the financial sector.
• Clarke highlighted that the initiative also benefits commercial banks by significantly reducing operational and administrative costs associated with compliance management. He further stated that this effort will stimulate competition within the banking sector and improve the efficacy of monetary policy by facilitating the easy transfer of customer accounts from one bank to another.

(Source: JIS)