Guidance on Digital Identity

Digital payments are growing at an estimated 12.7% annually, and are forecast to reach 726 billion transactions annually by 2020. By 2022, an estimated 60% of world GDP will be digitalised.

For the FATF, the growth in digital financial transactions requires a better understanding of how individuals are being identified and verified
in the world of digital financial services. Digital identity (ID) technologies are evolving rapidly, giving rise to a variety of digital ID systems. This Guidance is intended to assist governments, regulated entities3 and other relevant stakeholders in determining how digital ID systems can be used to conduct certain elements of customer due diligence (CDD) under FATF Recommendation 10.

An understanding of how digital ID systems work is essential to apply the risk-based approach recommended in this Guidance. Sections II to V provide the guidance in detail.

Credits: The Financial Action Task Force: Guidance on Digital Identity