Financial firms should consider requiring customers to provide proof of identity to ensure that digital-only ‘on boarding’ processes comply with anti-money laundering rules, EU regulators have said.

In a new joint opinion, the European Banking Authority, the European Insurance and Occupational Pensions Authority, and the European Securities and Markets Authority set out the type of issues financial regulators should consider when assessing the adequacy of ‘innovative solutions’ used by organisations for customer due diligence processes. While aimed at regulators, the opinion gives organisations a clue as to the type of controls they might put in place to satisfy regulators that they are appropriately addressing the risks.