Legal Issues of Identification in Remote Financial Services for Individuals

Abstract

In connection with the introduction of a high alert and self-isolation regime in the Russian Federation due to the coronavirus pandemic, the issue of remote financial services for individuals, especially the remote opening of accounts, deposits and lending to new customers, is particularly relevant in the banking community. The aim of the article is to propose additional regulatory measures to those already introduced in order to improve the process of financial service provision to individuals in a remote format. The research method is the study of various acts of state bodies (normative acts and newsletters), including those adopted during the period of high alert, as well as surveys of National Council of Financial Market member financial organizations on the impact of measures taken on their activities concerning the provision of services to individuals as well as suggestions for improving them. The article includes an analysis of regulators’ most important decisions on the issue and an evaluation of their impact on the sphere regulated, along with a consideration of international regulating experience in remote identification procedures. Based on the results of the work, conclusions are drawn on the appropriateness and sufficiency of the regulatory measures taken to ensure remote financial services for individuals in conditions of self-isolation as well as on promising ways to further improve the current legislation in this area.

Keywords

• financial services
• account opening
• lending
• bank of russia
• banking
• legal regulation
• remote identification
• remote servicing
• pandemic