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International Regulation Of Identification In Financial Services: Key Differences And Trends: K(NO)W Identity Conference 2017

This panel of the K(NO)W Identity Conference 2017 covered the regulatory approach governments around the world are taking to financial services and the role of identification in finance:

Governments around the world are making numerous changes to the regulation and supervision of financial marketplaces. This session will cover key trends and differences specifically affecting identity and identification.

Aaron Klein – Brexit, Trump, Le Pen indicate that it is not an inevitability that we are heading towards global unification, etc.

Alex Ketter, the Head of US Compliance for Google Payment Corp. spoke of the pockets of innovation present around the world as evidence of
, including public-private partnerships (some that are partially government funded or have received government buy-in).

Klein stated his belief that at some point the private sector needs to solve problems, because government won’t.
He gave the example of ATM withdrawals while traveling. This needs extensive identity verification and is often flagged as fradulent by the bank, but consumers or bad actors attempting to defraud them can make electronic transfers to the other side of the world for far greater amounts than can be withdrawn from an ATM. Know Your Customer (KYC) interoperability and the reasonable management of risk are other examples of these problems.

An audience question at the end of the panel came from compliance expert and advisor to One World Identity Juan Llanos, who asked if a task force or global regulatory entity is the place to start effecting change for financial inclusion.

Ketter pointed out that the Financial Action Task Force (FATF) or a similar agency has to set the standard, to persuade local governments to follow suit. Panelist Karen Gifford, a special advisor for Ripple and advisor for One World Identity noted that FATF has made efforts in this area but there has been little official adoption of their recommendations. She also said that there must be a balance between law enforcement’s KYC and Anti-Money Laundering (AML) requirements and financial inclusion. Governments may be hesitant to give up safety for inclusion, she said.

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