3 min read

Examining the Impact of eIDAS - Part 2

Picture of Gaurav Sharma (guest) Gaurav Sharma (guest) : 27. October 2021

Digital Signatures eIDAS PSD2 Anti-Money Laundering Directives
Examining the Impact of eIDAS - Part 2

In Part 1 of our series exploring the wide footprint of the eIDAS regulation, we looked at things like PSD2, the European Citizen’s Initiative, and the eHealth Governance Initiative. However, these are just a few examples of the many applications of the eIDAS mechanisms. In this part, we examine some other interesting applications, including Social Security and the prevention of Money Laundering.

AML5 - 5th Anti Money Laundering Directive

Anti-Money Laundering efforts play a crucial role in hindering criminal and terrorist operations on multiple levels. One of the major challenges here is the need for continuous monitoring of transactions for suspicious activity without affecting customer experience.

The tools supplied by eIDAS significantly improve compliance with AML Directives. This improves the customer experience, reduces the banks' costs, and meets the requirements of the regulators – all in one fell swoop. eIDAS enabled tools to ensure that money laundering, terror financing, and other such activities can be detected early and with more accuracy and less effort.

 

SUP - Directive on single-member private limited liability companies

As the name suggests, this directive covers entities with only a sole member, which might be the case due to all the shares eventually being held by a single person or something that was decided at inception. Relevant records of such a person must be kept per regulatory requirements. This is where eIDAS comes into play yet again by providing a pan-European electronic identification/ authentication mechanism.

 

ESSN - European Social Security Number

There has been a marked increase in labor mobility across the EU. This necessitates the creation of a system that can protect the social rights of all individuals moving across national borders. The ESSN aims to modernize the way social security is managed across Europe. The idea is to build a system that can identify European citizens across national borders for social security coordination and service delivery. ESSN would significantly rely on the digital approach, and eIDAS again plays a crucial role in enabling this system. eIDAS has been designed to allow for the cross-border use of electronic IDs, and such features would be greatly leveraged by the ESSN initiative.

 

Conclusion

eIDAS plays a crucial part in nearly every digital service delivery project, from healthcare to government and payments to social security. It provides powerful and secure tools that can be used by the government, as well as private and public-sector entities, to provide the level of service that European citizens have come to expect.

By standardizing the best practices for identification and authentication under eIDAS, the European Commission has eliminated the need for this issue to be grappled with when planning each individual project. This “building block” approach has definitely led to faster implementation and rollout of various EU initiatives.

 

 

Download white paper

 

 

References and Further Reading

 Image: Formula One, courtesy of Srikrishna Narasimhan, Flickr (CC BY 2.0) enhanced with the eIDAS letters by VentureSkies