CBR could test out video identification for cross-border payments - Nabiullina
MOSCOW. April 27 (Interfax) - The Bank of Russia may try out video identification for cross-border payments as part of an experiment, Central Bank Governor Elvira Nabiullina said in a press conference.
"Video identification, including in experimental mode, can be tested for cross-border payments. We see very big prospects here, of course, it is necessary to move towards this," Nabiullina said.
The regulator had earlier announced plans to launch a pilot for video identification of bank customers under an experimental legal regime by the end of the year.
"Video identification is used in many countries, but here there are concerns related to information security, fraud risks, naturally, so we need to work it out in the experimental mode. We are now discussing with colleagues to launch this experimental mode, for this we need changes to the regulatory framework," - said the head of the Central Bank.
"Video identification is used in many countries, but here there are concerns related to information security, fraud risks, of course, so we need to work it out in an experimental mode. We are now discussing with colleagues the launch this experimental mode, for this we need changes to the legal framework," the Central Bank chief said.
Last week, Deputy Chairman of the Central Bank Olga Polyakova said that the regulator is discussing the possibility of launching a system of video identification of customers for banks in the framework of the experimental legal regime (ELR), with hopes to launch it by the end of the year, and it will also require amendments to the "anti-money laundering" law.
The State Duma is currently considering a bill on simplified identification through a surety bond (N455930-8), which was passed in the first reading in January. Amendments are being made to Article 7, paragraph 1.12 of the "anti-money laundering" law, which prescribes possible ways of identifying a citizen.
The law on the possibility of establishing experimental legal regimes has been in effect since January 28, 2021, and its provisions allow companies to reduce the time and costs of developing and implementing new technologies, as well as reducing legal risks. In addition, it is possible to avoid complying with requirements that hinder digital innovation. Experimental legal regimes involve the application of special rules instead of general rules if the general rules significantly hinder the implementation of digital innovations.
The State Duma is now discussing the possibility of cryptocurrency export settlements under the ELR, as well as insurance of risks from operations of artificial intelligence.