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The PIN-Blocker: Where AML and privacy meet

Header PIN-blocker.

Summery

For lawyers, notaries, tax advisors, accountants, and investment firms, complying with the Anti-Money Laundering (AML) regulations is a daily necessity. At the same time, the General Data Protection Regulation (GDPR) requires careful handling of personal data, including the Personal Identification Number (PIN). Our PIN-blocker offers a practical solution that not only helps meet legal requirements but also safeguards client privacy. In this blog, we’ll explain how the PIN-blocker works, address privacy challenges, and explore its practical applications. 

 

Is a Personal Identification Number (PIN) necessary under the AML? 

A A Personal Identification Number (PIN) is a unique identification number that may only be used for specific legal purposes. It acts as a link between citizens and the government. Under AML regulations, institutions are required to identify and verify their clients. Although a PIN is often included on identity documents, storing this number is usually not required. Unauthorized storage or sharing of a PIN without a legal basis can result in fines.  The PIN-blocker ensures the protection of this data, allowing you to comply with regulations. 

For more information on AML requirements, visit FIU-Netherlands. 

 

How to navigate between AML and GDPR? 

Complying with both AML and GDPR can be challenging, especially when processing sensitive data like the PIN. Where AML requires client identification, GDPR imposes strict conditions on the processing and storage of personal data. One solution is to minimize dataprocessing and use secure systems. By masking a PIN and encrypting data, firms can ensure that sensitive information is only accessible to authorized users or institutions. This reduces the risk of human error and keeps personal data secure. 

For instance, a PIN-blocker can make the PIN unreadable on a copy of an identity document. This limits dataprocessing to what is strictly necessary, without violating legal requirements. Combining these measures with internal policies allows firms to comply with both AML and GDPR while protecting their clients’ privacy. 

 

Is a PIN-blocker, and how can it be used?  

A PIN-blocker is an advanced tool that prevents unnecessary processing or sharing of a PIN. The PIN-blocker in the RegLab application is designed to help firms securely and efficiently handle personal data. When receiving a copy of a client’s ID, you can use the tool to completely mask and store sensitive data, significantly reducing the risk of data breaches. The tool also allows users to digitally obscure the client’s PIN and photo during document uploads. 

This privacy tool is particularly useful in the following scenarios: 

  • Compiling client files: When processing identity documents in client files, the application enables you to block the PIN and other non-essential sensitive data. This ensures compliance with both AML and GDPR without slowing down processes. 
  • Conducting UBO investigations: During the identification of ultimate beneficial owners (UBOs), the PIN may be temporarily processed. Thanks to the PIN blocker, this information remains protected, avoiding unnecessary risks and maintaining a clear workflow. 
  • Sharing documents with third parties: Whether dealing with regulators or external parties, the RegLab application ensures that sensitive information is digitally masked, allowing safe sharing while meeting GDPR requirements. 

 

Want to learn more?

Would you like to discover how the RegLab application can make your workflows safer and more efficient? Book a free demo today and see how you can effortlessly meet AML and GDPR requirements while safeguarding your clients’ privacy. 

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