Iran to Establish Centralized KYC System

EghtesadOnline: Iran’s High Council of Cyberspace ratified a document on the establishment of an online user authentication system late Saturday.

News ID: ۷۴۸۳۳۵

02 September 2019

During a council meeting attended by President Hassan Rouhani, a document was ratified for the development of a system that would be akin to a centralized know your customer (KYC) system.

According to President.ir, the system will make online transactions more secure and help businesses and users conduct communications after both sides are authenticated.

Measures for protecting users’ privacy and business data were also discussed, Financial Tribune reported.

Iran’s ICT Minister Mohammad Javad Azari Jahromi attended the meeting, along with other high-ranking officials, including Parliament Speaker Ali Larijani, Judiciary Chief Ebrahim Raeisi, Intelligence Minister Mahmoud Alavi-Tabar, President’s Chief of Staff Mahmoud Vaezi, Vice President for Science and Technology Sorena Sattari and Secretary of High Council of Cyberspace Abolhassan Firouzabadi.

Know your customer is the process of a business verifying the identity of clients and assessing their suitability, along with the potential risks of illegal business interactions.

Vast Potential

According to an earlier report published on the same website, the system will be used for securing “financial and technical transactions” and can impact “social and political” communications along with online content production and distribution. No further details about the plan are available.

The role of startups, as well as cyberspace potentials and threats, was underscored by President Rouhani during an earlier session.

Rouhani said modern technologies can help boost the quality of services offered to people while creating a more secure business environment.

He highlighted the fact that technological solutions can be tapped for creating transparency in different markets.

The president reiterated his goal of creating jobs with the help of startups and tech firms by tapping into cyberspace potentials.

Iranian state players differ over how to regulate the cyberspace, with more conservative voices highlighting what they consider “cyber threats” aimed at “distorting Iranians’ Islamic way of life”.

Emphasizing the pivotal role of ICTs in enhancing the quality of services offered to citizens, Rouhani said concerns about the downsides of widespread activities of online platforms and services should not deter Iran from exploiting the potentials of cyberspace.

According to the president, all cyber threats can be curbed using the potentials of Iran’s National Information Network—an independent domestic network that enables Iranians to communicate without relying on Internet hubs.

The national scheme comprises several projects, including but not limited to the expansion of local fiber-optic network, installation of Internet Exchange Points and giving a boost to Content Delivery Networks.