How to Implement
Guidance
Allow and encourage the application of simplified CDD.
Regulators should allow and encourage the use of simplified CDD by DFSPs for lower risk customers that allows them to easily open basic transaction accounts in line with their assessed risks (based on FATF recommendations). (The process of identifying the customer and verifying their information at account opening is often referred to as know-your-customer or KYC process). Basic transaction accounts that are subject to lower identification requirements and transaction value limits, ensure the Inclusive IPS remains accessible and useful to a broader set of customers, including those new to formal financial services.
Reiterate simplified CDD in Scheme rules.
The Scheme rules reiterate that DFSPs should implement internal policies and procedures that are in line with regulations that allow and encourage the use of simplified CDD for basic transaction accounts.
Communicate features and controls on transaction accounts: DFSPs should clearly disclose the functionalities that customers get with open basic transaction accounts, and the limits and controls they are subject to.
They should also communicate the features of more advanced accounts that customers can have access to with more identification and established transaction history, based on risk-based CDD approaches that align functionalities to customer risk profiles.
Balance customer account controls with fraud controls.
The Scheme requires DFSPs to apply transaction account controls appropriate for each customer risk profile, in line with regulations and relying on simplified CDD, that allow customers to open and use basic transaction accounts while also enabling DFSPs in mitigating the incidence of fraud through ongoing monitoring and application of additional controls as appropriate.
Require multiple sender authentication methods.
The Scheme requires DFSPs to utilize multiple tools and controls to authenticate an account holder. Multifactor authentication is a common approach that requires an account holder to confirm their identity with a combination of something they have (e.g., a mobile phone), something they are (e.g., their fingerprint or iris scan), or something they know (e.g., a PIN or password). Use of multiple methods, including ones that work with feature phones to authenticate senders will more effectively prevent fraud.
Maintain simplified CDD requirements for cross-border transfers.
Low-value, cross-border transfers are available to end users with basic identification.
Why It Matters
This makes the Inclusive IPS more accessible and useful for underserved communities while supporting management of risk as transaction limits grow.
Seeing More Clearly
Select a lens to learn the “why” this practice.
Women’s Inclusion
Low-income women are less likely to have formal identification and have higher mobility constraints, thus benefiting from the availability of basic transaction accounts that have simplified due diligence requirements do not require excessive documentation and a burdensome process, and that can be opened remotely.
Fraud Mitigation
Simplified CDD protocols consider the risk of the end user as they become onboarded to digital accounts and apply the appropriate controls to match that profile. The protocols aim to achieve the right balance simple easy account opening and enabling DFSPs in mitigating the incidence of fraud through ongoing monitoring and application of additional controls as appropriate.
Cross-Border
End users’ payment needs across key use cases extend to cross-border transactions. Applying simplified CDD processes in the cross-border context, and ensuring that low-value cross-border transfers can be made by end users with basic identification (as in the domestic context), supports end users’ need for convenience and usefulness.
Tools
Design Guides
Dig into how to implement each of the practices.
Practical Approaches Acknowledge Social Norms Toward Women’s Inclusion
Summary of existing resources on ways to address gender norm barriers to inclusion.
Review Practical Approaches Acknowledge Social Norms Toward Women’s InclusionRepresentation of Women in Marketing and Financial Capability Campaigns
Summary of existing guidance on gender-inclusive communication in marketing and financial capability campaigns.
Review Representation of Women in Marketing and Financial Capability CampaignsBuilding Financial Awareness and Capability
This guidance summarizes the key attributes of a strong financial awareness and capability approach, with a focus on government social disbursement programs, which are often…
Review Building Financial Awareness and CapabilityRole of Ecosystem to Increase Women’s Awareness of Inclusive IPS Services and Products
Type of Stakeholder: Instant Payment System What The Stakeholder Can Do to Increase Women’s Awareness: Type of Stakeholder: Regulator What The Stakeholder Can Do to…
Review Role of Ecosystem to Increase Women’s Awareness of Inclusive IPS Services and ProductsPrivacy in Notifications
Overview of privacy risks related to notifications, along with methods for mitigating these risks.
Review Privacy in NotificationsSuggested Notifications and Tips for User Safety and Privacy
Description of effective notification types and sample market illustrations.
Review Suggested Notifications and Tips for User Safety and PrivacyFATF Recommendations and Guidance on Financial Inclusion
Summary of relevant FATF guidelines for customer due diligence and CGAP research on innovations in the space.
Review FATF Recommendations and Guidance on Financial InclusionEcosystem Roles in Enabling Certainty of Payee
Account Naming Role: Inclusive IPS Actions: Role: DFSP Actions: Role: Regulator Actions: Alias Addressing Role: Inclusive IPS Actions: Role: DFSP Actions: Role: Regulator Actions: Confirmation…
Review Ecosystem Roles in Enabling Certainty of PayeeWhat Good Certainty of Payee Looks Like
Overview of good design in the certainty of payee process, alongside a tangible example and illustration of the certainty of payee process.
Review What Good Certainty of Payee Looks LikeAlias Attributes
Overview of essential and desirable attributes for alias types.
Review Alias AttributesAlias Addressing Options
Overview of alias addressing types, benefits, and considerations for use.
Review Alias Addressing OptionsStandardized Disclosures for FX
This design note and companion interactive model suggests an approach to standardizing foreign exchange disclosure.
Review Standardized Disclosures for FXPIX Minimum Requirements for User Experience, Version 7.0
These are the user experience rules for financial institutions participating in Pix
Review PIX Minimum Requirements for User Experience, Version 7.0Generic payments scheme rulebook categories and example table of contents
A generic scheme rules that IIPS operators can use to build their own rulebook
Review Generic payments scheme rulebook categories and example table of contentsRelated Resources
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