Malaysia has become an attractive place for Chinese nationals to do business, invest, open bank accounts and establish companies. For Malaysian banks, financial institutions, company secretaries and other service providers, this also means dealing with more customers who hold Chinese identity documents.
Verifying these customers' identities is an important part of the onboarding process. But how do you know whether the person presenting an identity document is really who they claim to be?
This is where things can get a little more complicated.
Checking an identity document and confirming someone's identity are not necessarily the same thing.
Is Checking a Chinese ID Card Enough?
When a Chinese national applies to open a bank account or engage a business service in Malaysia, the first step is usually to collect their identification details and supporting documents.
For a Chinese citizen, this may include a Chinese Resident Identity Card or other applicable identification documents.
At first glance, the process may seem straightforward. The name and identification number are recorded, the document is reviewed, and a photograph is compared with the person in front of you.
However, these steps alone may not provide enough information to establish that the identity details belong to the person presenting them.
…does not automatically establish that the person using it is its rightful holder.
…may show a live person, but liveness alone does not confirm a match with the identity registered in an authoritative database.
For businesses handling customer onboarding, it is worth looking beyond the document itself.
What Should Malaysian Businesses Check?
There is no single verification method that suits every situation. The checks required will depend on the nature of the business, the customer's profile, the applicable regulatory requirements and the level of verification needed.
For businesses dealing with Chinese nationals, several checks may provide a more complete picture.
Verify the Identity Details
Start with the customer's identity information, including their name and identification number.
Where the relevant verification service and data source permit, these details can be checked against authoritative records to help establish whether the submitted information matches the available records.
This is an important starting point, but it should not necessarily be the end of the process.
Compare the Face Against Authoritative Records
Facial liveness checks are commonly used in digital onboarding. They help determine whether a person is physically present during the verification process rather than simply presenting a photograph or video.
But there is an important distinction between confirming that someone is live and confirming their identity.
A liveness check by itself does not establish that the person is the legitimate holder of the identity document.
Where available and legally permissible, an additional facial comparison against an authoritative identity database can help determine whether the person's facial image matches the image associated with the identity record.
For organisations onboarding Chinese nationals remotely, this additional comparison can provide another layer of verification beyond a conventional liveness check.
Verify the Mobile Number
A mobile number can be an important part of a customer's identity profile.
Where appropriate verification services are available, checking the relationship between a customer's mobile number and their identity information can help establish whether the details are consistent with the available records.
This is particularly relevant in digital onboarding, where a mobile number may be used for account registration, authentication and ongoing communication.
However, a mobile number verification result should be interpreted according to what the underlying data source actually confirms. A matching number alone does not prove that a customer is trustworthy or that a transaction is legitimate.
Verify the Bank Card Information
In some onboarding scenarios, confirming bank card information can provide another useful point of reference.
Depending on the verification service available, a bank card number may be checked against the relevant identity information to assess whether the details are consistent.
This can help businesses identify discrepancies that may warrant further review.
As with other checks, the result should be understood within the scope of the service. Bank card verification is not a substitute for the organisation's broader customer due diligence process.
Conduct Relevant Fraud and Litigation Checks
Identity verification answers an important question: does the available evidence support the customer's claimed identity?
But depending on the business relationship, another question may also matter: is there other relevant information that the organisation should consider before proceeding?
Fraud-related checks and litigation checks can provide additional information for review, subject to the availability, coverage and permitted use of the relevant records.
For example, relevant findings in available records may warrant further examination of a customer's circumstances or background.
These checks should not be treated as proof of wrongdoing simply because a record or possible match exists. Results need to be interpreted carefully, and potential matches should be reviewed before decisions are made.
For businesses that need to conduct more detailed due diligence, combining identity verification with relevant additional checks can provide a broader basis for assessment than relying on identity documents alone.
Why Is China-Specific Verification Important?
One challenge for Malaysian businesses is that information about Chinese nationals may be held in systems and databases that are not readily accessible through ordinary local verification processes.
A Malaysian business may be able to collect a customer's passport or Chinese identity card, but collecting a document is different from independently verifying the information it contains.
China-specific verification services can help bridge this gap by facilitating checks against relevant Chinese data sources, subject to the availability and permitted use of those sources.
The exact checks available will depend on the type of identity, the information submitted and the applicable verification arrangements.
For organisations that regularly serve Chinese customers, having a defined verification process can make onboarding more consistent and reduce reliance on document inspection alone.
How Info Data Helps Verify Chinese Nationals
At Info Data, we focus on helping Malaysian businesses verify Chinese individuals through China-specific identity verification services.
Rather than limiting the process to collecting a name, identification number and facial liveness result, our service can support a more detailed verification process, depending on the checks required and available for the individual case.
These checks can include:
- Identity information verification
- Facial comparison
- Mobile number verification
- Bank card verification
- Fraud-related checks
- Litigation checks
The purpose is to help organisations obtain additional verification information when assessing a Chinese customer's identity and background.
The checks are conducted according to the applicable verification process. Where a verification workflow requires multiple elements to match, the next step is initiated only after the preceding step meets the required criteria.
This helps establish a more structured verification process rather than relying on a single check to answer every question.
The exact scope and outcome depend on the verification service, the information supplied and the availability of the relevant records.
Who Can Benefit From China Identity Verification?
China-specific identity verification may be useful for a range of organisations in Malaysia, including:
Organisations onboarding Chinese customers may need additional identity information to support their customer due diligence procedures.
Businesses offering digital financial services may benefit from additional verification options when onboarding customers remotely.
Professionals assisting Chinese nationals with company formation or related business services may need to establish their clients' identities as part of their applicable due diligence procedures.
Organisations entering business relationships with Chinese individuals may need additional verification information to support their internal review processes.
The appropriate checks will vary according to the organisation's responsibilities and the nature of the relationship.
A More Thorough Approach to Customer Verification
Verifying a Chinese national's identity in Malaysia does not have to stop at checking an identification document.
Identity information, facial comparison, mobile number verification, bank card verification and relevant fraud or litigation checks can each contribute different information to the overall verification process.
The key is understanding what each check establishes, what it does not establish, and how the results should be used.
For Malaysian organisations that regularly onboard Chinese customers, a China-specific verification process can help fill information gaps and provide additional evidence for customer due diligence.
Need to verify Chinese customers for your business?
Info Data helps Malaysian organisations access China-specific identity verification services, with additional checks available according to the verification requirements.
Contact Info Data to discuss your verification needs and find out which checks may be suitable for your onboarding process.