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FinTechs belonging to this category provide identification services, which are required for most banking services.
Introduction
Attitude of the country towards identification services
Currently, identification without physical presence of the client is possible on the basis of the qualified electronic certificate, as well as by using video-identification, which is currently allowed to entities supervised by the NBS (including banks and payment institutions), factoring and accounting companies. The trend of using identification services is therefore noticed by these entities, especially the banks.
Under the Law on the Prevention of Money Laundering and the Financing of Terrorism (“AML Law”) obligors may outsource, among others, identification of the clients to a limited scope of the licensed third parties, including banks, payment institutions and factoring companies. Such possibility will certainly boost future development of the identification services on the market.
Legal affairs
Obligations and requirements to provide identification services
As a rule, obligors of the AML Law must identify the client in person. As an exception, identification of the client who is a natural person or entrepreneur is possible on the basis of the qualified electronic certificate issued by a certification body based in the Republic of Serbia, or a foreign electronic certificate that is equal to domestic. Providers of electronic identification services must be locally registered with the Ministry of Commerce.
Identification of the client without physical presence is also allowed by using video identification. Currently, such possibility is given to the entities supervised by the NBS (e.g., banks, insurance companies), as well as to factoring companies and accounting companies. Based on the bylaws adopted by the regulators it seems that at the moment video-identification may only be outsourced to the limited scope of licensed domestic entities (e.g., banks, payment institutions, factoring companies). These activities may only be outsourced on the basis of the outsourcing agreement, following notification to the competent regulator.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
N/A
Economic conditions
Market size for identification services and biggest companies in this business area
At the moment this market is rather underdeveloped. Further market expansion in this area is expected.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
N/A