Development of a regional policy framework on e-KYC and e-ID for the Eastern Europe and Central Asia Policy (ECAPI) Initiative

• Aug 14, 2025
• 2 min

Across Eastern Europe and Central Asia, limited access to legal identity holds back the advancement of financial inclusion. The existing national ID systems often lack the digital capabilities needed to support secure, interoperable electronic know-your-customer (e-KYC) solutions. The broader digital identity ecosystem in the region remains fragmented and underdeveloped, with few region-specific frameworks to guide coordination, policy alignment, or cross-border implementation. With this gap, a regional policy framework was increasingly needed to strengthen digital identity and e-KYC systems and align them with international standards and best practices.

MSC supported the Alliance for Financial Inclusion (AFI) in developing a regional policy framework on e-KYC and electronic ID (e-ID) for seven Eastern European and Central Asian (EECA) countries: Armenia, Belarus, Russia, Mongolia, Kazakhstan, Tajikistan, and Uzbekistan. We began by conducting a desk review of existing research and documentation to understand the current digital ID and e-KYC landscape in these countries. This was followed by an in-depth analysis of regulatory and policy frameworks, which included FATF AML/CFT compliance.

MSC held consultations with the AFI management team and the expert group. We conducted a comprehensive survey among member countries in the ECAPI initiative to assess their status, challenges, and opportunities. We also carried out a follow-up survey to explore supporting infrastructure, policy environments, and financial inclusion conditions. Based on these insights, MSC developed research tools and analysis frameworks that informed stakeholder consultations and helped shape the policy framework.

The engagement resulted in a detailed situation report that highlighted key policy gaps and regulatory approaches, and enabled a deeper understanding of the state of digital ID and e-KYC implementation in the region. The regional policy framework, launched in January 2022, was designed to support EECA countries to strengthen their systems, harmonize standards, and advance digital financial inclusion. The framework now serves as a reference for regional collaboration and national-level reforms.

The Alliance for Financial Inclusion (AFI) commissioned the project.