CZC FIU issued methodological Instruction 8 Aug. 17, 2023 for obligated persons pursuant to §2 of Act 253/2008 regarding copies of ID cards for purposes of AML Act.
Context
To effectively combat legalization of proceeds of crime, terrorist financing (AML/CFT), records must be kept after asset transfers, including recording from/to whom assets are transferred; they must meet AML Act requirements for client identification.
Key Aspects
Methodological instruction aims to make it easier for obliged persons to use provisions of AML Act in area of client ID for physical presence and copying of ID card, if needed.
Also removes difficulties regarding interpretation that arise in practice on those issues.
Making copies of clients' ID cards in face-to-face identification shouldn't occur across board, only per assessment of risks, impact on personal data protection art 35 GDPR.
If obliged person performs client ID remotely §11(7) or indirectly §10 AML Act, regardless of risks, legal duty to have copy of ID card to identify client must be met.
For remote identification, client has, per §11, para 7 a) point 1 AML Act, obligation to send copies of the relevant person’s ID card parts to liable person.
For purposes of mediated identification in §10 para 3 AML Act notary or public administration contact point must attach copy of relevant parts of identity document.
ID card copy quality is determined by §10 para 4 AML Act, it requires copy be made in way that relevant data readable, possibility to preserve for period set in §16 ensured.
It must also contain copy of image of identified natural person in identity card in such quality so as to enable verification of conformity of form.
Regarding the clarity of these provisions, the methodological instruction focuses exclusively on the issue of face-to-face client identification according to §8 AML Act.
CZC DP provided comments based on available interpretation of GDPR in field of AML within framework of cooperation between State authorities.
So that on basis of general knowledge helped to create objective correct methodology.
Effectiveness
The methodological instruction takes effect on Sep. 1, 2023.
May 29, 2024 CZC FIU Opinion
On May 29, 2024, CZC FIU issued an opinion on the newly introduced obligation to copy identity cards by certain obliged persons, that will take effect Jan. 1, 2025.
From that date banks, credit unions, payment services providers, electronic money issuers, or those providing safety deposit boxes, safekeeping services must take copy of the identity card when identifying a customer, keep data under AML Act section 16.
This is required where the client is first identified in the client's physical presence, if identification of client is made by other means then copy of ID card is not required.
Obligation also does not apply where the obliged person already has a copy of the customer ID for other purposes, only have to verify their identity in appropriate way.
