Consultation launched over digital identities
The Bermuda Monetary Authority has launched a consultation paper seeking feedback on the regulation of digital identity service providers.
An identity provider is an organisation — government or private sector — issuing digital identities for individual use in everyday financial transactions.
While the BMA said it recognised that digital IDs might provide people with a “convenient and secure way to prove their identities”, it warned that the rise of identity theft meant organisations could not rely on a “person simply claiming to be who they are”.
“Of equal consideration is that individuals could potentially present false information about themselves to gain access to goods, services or environments for which they are not eligible,” said the paper.
It added: “With the ever-increasing use of digital means for the delivery of services, the need for trusted and secure digital IDs is becoming ever more acute.
“Digital ID systems that meet high technology, organisational and governance standards hold great promise for improving the trustworthiness, security, privacy and convenience of identifying individuals in a wide variety of settings in the global economy of the digital age, including financial services, healthcare and e-government services.
“Digital IDs are required in these contexts to better assure an individual’s identity.”
According to the paper, the BMA wants to progress a number of policy objectives, including the reduction in friction points experienced by domestic customers of Bermuda financial institutions.
It said: “Such friction points can arise during an account opening when, to establish an account, a customer's identity must be verified by submitting documents that first need to be obtained and certified.
“Friction points can also arise when customers need to interact separately with each of their financial service providers on a regular basis to update their identity information.”
• To read the full consultation document, see Related Media
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