4.3. Broader Issues Presented by Digital ID Systems

يسري تنفيذه من تاريخ 31/10/2022

Beyond specific risks associated with identity proofing/enrollment and authentication, there are a number of broader issues in the digital space that may impact the integrity or availability of digital ID systems to conduct CDD. These include but are not limited to:

•	Connectivity issues: The lack of a reliable network infrastructure can undermine digital ID systems at particular customer touchpoints or across larger geographic areas for meaningful periods of time. However, digital ID systems can be designed to support both offline and online transactions, allowing them to function with or without access to the Internet or a mobile network. LFIs should consider the resilience of available networks and systems, including the geographic locations from which customers may be utilizing a digital ID system for authentication, when deciding whether to use a digital ID system for CDD.
•	UAE frameworks for official identity: The reliability and independence of purely documentary approaches can be undermined by identity theft and the widespread counterfeiting of official identity documents, including where official identity documents either lack advanced security features to prevent tampering or counterfeiting or are issued without adequate identity proofing. Such weaknesses in the reliability of documentary identity evidence can have a cascading effect on the risks posed by digital ID systems, and identity theft from online databases can generate similar risks for both digital ID systems and documentary approaches.
		○	The Emirates ID utilizes ultraviolet ink, public key infrastructure, and fingerprint biometrics to prevent tampering or counterfeiting of the card.
		○	To further mitigate the risks associated with tampering or counterfeiting of official identity documents, LFIs should use the online validation gateway of the Federal Authority for Identity and Citizenship when verifying the Emirates ID card, and should keep a copy of the Emirates ID and its digital verification in their records.⁸
•	Data protection and privacy challenges: Digital ID involves the collection and processing of PII, potentially including biometrics. As such, digital ID systems are subject to local data protection and privacy (“DPP”) requirements, including Federal Decree-Law No .34 of 2021 Concerning the Fight Against Rumors and Cybercrime; Federal Decree-Law No. 46 of 2021 On Electronic Transactions and Trust Services; the Internet Access Management (IAM) policy; relevant Emirate-level requirements such as the Dubai Data Law; and Federal Decree-Law No. 45 of 2021 on the Protection of Personal Data, where relevant.
		○	Under the UAE’s DPP framework, LFIs and DISPs are not permitted to transfer or store personal data, including digital or physical copies of Emirates IDs, outside of the UAE, except as permitted by Articles 22 and 23 of the Federal Decree-Law No. 45 of 2021.
		○	LFIs should also consult the Principles on Identification for Sustainable Development, including Principle 8 regarding the protection of personal data and the maintenance of cyber security,⁹ as well as guidance from global standard-setting bodies in their respective sub-sectors.
•	Financial exclusion considerations: Where digital ID systems do not cover all, or most, persons within a jurisdiction, or where they exclude certain populations, they may drive (or at least fail to mitigate) financial exclusion. The mandatory use of a specific digital ID that is not universally available for CDD presents challenges similar to the prescriptive use of a documentary ID that is not accessible to the entire population.
		○	Lack of access to digital technology or low levels of technological literacy may compound exclusion risks. For example, lack of access to mobile phones, smartphones, or other digital access devices, or lack of coverage and/or unreliable connectivity, may exclude poor and rural populations or women as well as those living in fragile and conflict-affected areas, such as refugees and displaced people.
		○	Digital ID systems may also contribute to financial exclusion if they use biometric authentication without providing alternative mechanisms for authentication, as certain biometric modalities have greater failure rates for some vulnerable groups. For example, manual laborers may have worn fingerprints, which cannot be read by biometric readers; the elderly may experience frequent match failure, due to altered facial characteristics, hair loss, or other signs of aging, illness, or other factors; and certain ethnic groups and individuals with certain physical characteristics related to darker pigmentation, eye shape, or facial hair experience disproportionate facial recognition failures.
		○	Special considerations for LFIs related to financial inclusion are discussed in section 5.2 below.

⁸ See https://ica.gov.ae/en/ica-validation-gateway/.
⁹ See https://id4d.worldbank.org/principles. Although developed to support the creation of “good” government-recognized ID systems, FATF’s Guidance on Digital ID notes that they apply more broadly and can be adopted by both public- and privately-provided and used identity systems and services.