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MLD5 introduces additional customer due diligence requirements

The Fifth Money Laundering Directive (MLD5), which took effect on 10 January 2020, introduces new requirements for safeguarding the European Union financial system against money laundering and the funding of terrorist activities.

The MLD5 concerns stronger processes for customer due diligence, including additional identification and verification obligations and, in certain cases, a requirement to refresh customer due diligence.

MLD5 clarifies that verifying a customer’s identity on the basis of documents, data or information obtained from a reliable and independent source can include, where available:

  • electronic identification means (eID)
  • relevant trust services (as defined in Regulation (EU) No 910/2014 on electronic identification and trust services for electronic transactions “eIDAS“)
  • any other secure, remote or electronic identification process regulated, recognised, approved or accepted by the relevant national authorities

Scrive’s suite of electronic identification and authentication services is designed to support due diligence activities in highly regulated industries. Our goal is to make it easy for our customers to remain in compliance in a climate of tightening regulations while continuing to offer their own customer a seamless, digital customer experience.

Scrive supports eID authentication in our eSign document signing workflows as well as through our eID Hub API, both of which support the most trusted and widely-accepted eID means throughout the Nordics as well as in the EU.