ETSI 119 461 v2.1.1: Updates you need to know for stronger identity proofing in banking and financial services

This is particularly relevant in sectors such as banking and finance, where digital trust is key. The ETSI provides the necessary foundation to combat fraud and comply with regulations such as anti-money laundering (AML).

February 2025 marked the release of the latest version of the ETSI 119 461 specification, which introduces updates that reinforce identity verification processes. This article examines these updates, how companies can prepare to implement them effectively, and their relevance to businesses across all sectors.

What is ETSI 119 461?

While ETSI 119 461 is not directly applicable to the financial sector, it holds significant relevance for two key reasons:

• It establishes the requirements for verifying identities in trusted digital services, such as issuing qualified certificates used in qualified electronic signatures. These signatures are recognised across Europe as a valid method to meet the identification requirements of AML regulations.
   
• The previous version of ETSI 119 461 served as the foundation for the European Banking Authority’s (EBA) "Guidelines on the use of Remote Customer Onboarding Solutions," published in November 2022. Future updates to these guidelines are expected to align with the latest version of ETSI 119 461, reinforcing its role as a key reference for compliance in financial services.

This alignment ensures that organisations conducting ETSI audits can demonstrate compliance with EBA guidelines, making ETSI a practical and effective framework for financial institutions aiming to meet regulatory demands while enhancing trust in digital onboarding processes.

The possibility of using the qualified electronic signature as a valid means of remote identification in customer due diligence processes was introduced at the European level by Directive (EU) 2018/843, known as the Fifth Anti-Money Laundering Directive (AMLD5), adopted on 30 May 2018 and entering into force in January 2020. This directive marked a significant change in the methods of verification permitted to comply with anti-money laundering regulations.

These recognitions underline the importance of the ETSI 119 461 specifications in modernising identity verification processes, especially in sectors with high regulatory demands.

What’s New in ETSI 119 461 v2.1.1

ETSI 119 461 version 2.1.1, published in February 2025, introduces several updates aimed at improving identity proofing processes to meet the current needs of companies and technological sectors. Here are the main updates that concern entities using these services for client onboarding and registration in highly regulated sectors, like finance and banking:

Three Defined Use Cases

This update defines specific requirements for three main scenarios:

• Face-to-face Identification: Traditional, in-person verification.
• Real-time Remote Assisted Identification: Remote processes with real-time human supervision.
• Unattended Remote Identification: Remote, automated or hybrid processes without real-time human supervision.

Eligible Documents and Validation Methods

The new ETSI also defines two main types of eligible documents for verification processes:

• Physical documents, such as passports or national identification cards.
• Digital documents, such as electronic IDs or e-passports, that comply with ICAO standards and eMRTD characteristics.

Furthermore, it classifies verification processes into three types:

• Manual: Fully operated by humans.
• Automatic: Entirely managed by automated systems.
• Hybrid: A combination of manual and automated methods.

Hybrid methods are particularly recommended for the use of physical documents, as they balance the accuracy and reliability of manual processes with the speed and efficiency of automated ones. For this reason, they are also the most viable option for financial institutions that use physical documents in digital onboarding. For example, banks can use hybrid verification processes during online account openings to ensure the accuracy of physical document checks while maintaining the speed demanded by customers. This balance not only reinforces compliance with regulations like AMLD6 but also enhances customer trust through a smooth digital onboarding experience.

Benefits of Adopting new ETSI 119 461

The adoption of these technical specifications provides crucial benefits for companies, creating a robust framework for digital trust:

• Enhanced security and accuracy: More reliable and secure verification systems that reduce human errors and improve accuracy in identity authentication.
• Fraud reduction: With stronger processes, organizations can detect and prevent fraudulent activities
• Simplified regulatory compliance : As the ETSI 119 461 specifications are closely aligned with eIDAS2, GDPR and the Sixth Anti-Money Laundering Directive (AMLD6), this guarantees regulatory compliance, reduces risks, builds trust, and facilitates smoother audits.

Why is ETSI 119 461 v2.1.1 Relevant?

ETSI is not limited to ensuring regulatory compliance. It addresses current key challenges and creates opportunities for financial institutions and other highly regulated organisations to enhance their operations, particularly in identity proofing.

Major Challenges in Identity Proofing
 

• Regulatory Fragmentation in Europe: While the ETSI aims to harmonise practices within the EU, there are still national differences that financial institutions must manage, especially those operating in multiple countries.
• Fraud Prevention: The new ETSI requirements can strengthen fraud protection by establishing rigorous verification practices.
• Improved User Experience: Remote verifications aligned with the ETSI ensure efficient and secure onboarding processes, which can be a key differentiator in attracting and retaining customers.
   

A Step Towards Global Harmonisation

The importance of ETSI extends beyond Europe. Globally, initiatives are underway to harmonise identity verification practices, and the ETSI is positioned as a key reference point for this international alignment. For organisations operating in multiple countries or aiming to lead in good digital verification practices, participating in these developments is essential.

What is the adoption deadline for ETSI 119 461?

An adoption period has been set until the end of 2026, giving accreditation agencies, laboratories, and providers the necessary time to implement and test the new requirements. This timeline ensures organisations can fully prepare to meet the specifications.

How to Adapt Your Processes to the New ETSI

The ETSI 119 461 v2.1.1 technical specifications are much more than a list of requirements; they are a strategic framework for organizations across all sectors to modernise and strengthen their identity verification processes.

For banks, meeting ETSI 119 461 standards is key to addressing regulations like AMLD6. Tools like remote video identification make it easier to verify identities quickly and securely. Hybrid systems add another layer of reliability, balancing compliance with efficiency. These steps help fight fraud and protect both the bank and its customers, all while improving the onboarding experience.

Signicat, a European leader in digital identity solutions, offers advanced tools such as remote video identification to optimise your verification methods and prepare your infrastructure for future regulations, whether to align your processes with the new ETSI requirements or to comply with AML regulations.