This guide is designed to help you understand the strict regulatory requirements for identity verification on Debitum Investments. As a licensed investment brokerage firm regulated by the Bank of Latvia (Latvijas Banka), we must adhere to both Latvian national laws and European Union (EU) regulations regarding Anti-Money Laundering (AML) and "Know Your Customer" (KYC) procedures.
To ensure the security of your investments and comply with financial regulations, all investors must provide valid, high-security identity documents.
1. General requirements for all documents
Regardless of your country of origin, your document must meet these four rules:
Original document: You must provide a live photo of the original physical document. Scans, photocopies, screenshots, or photos of a screen are strictly not accepted.
Machine-readable zone (MRZ): The document must have an MRZ (the two or three lines of characters and arrows <<<<<< at the bottom or back).
Validity: The document must be currently valid (not expired).
Full visibility: All four corners of the document must be visible in the photo, with no glare, blur, or fingers covering any data. This is required to enable faster technical verification; if these conditions are not met, verification cannot be completed.
2. For EU / EEA and Swiss citizens
Citizens of the European Union, European Economic Area, and Switzerland can use:
A. International passport
Status: Highly recommended.
Requirement: Must be a biometric passport with a clear MRZ.
B. National ID card (E-ID)
Status: Accepted only if it is the "New Version."
The MRZ requirement: Following Regulation (EU) 2019/1157, identity cards must include a machine-readable zone.
Non-accepted IDs: Older "paper-based" or plastic ID cards that lack a machine-readable strip (common in older Greek, Italian, or French formats) are no longer accepted for automated digital verification.
3. For citizens outside the EU (global investors)
If you are a resident of a country outside the EU/EEA (e.g., Paraguay, Brazil, etc.):
Passport only: In almost all cases, a valid International Passport is the only document accepted for non-EU residents.
National IDs: Any non-EU ID document you submit must comply with all four General Requirements:
Original document (a live photo of the physical document)
MRZ (machine-readable zone)
Validity (the document must not have expired)
Full visibility (all four corners visible with no glare, blur, or obstructions)
If any of these requirements are not met, we cannot proceed with verification.
This requirement ensures that only secure, machine-readable identity documents are used for verification and prevents the use of laminated paper documents or other non-standard IDs that do not meet regulatory and technical verification standards.
4. Why do we not accept "old" ID cards
Many investors ask why their locally valid ID is rejected. Under Regulation (EU) 2019/1157, the EU has mandated a phase-out of less secure identity documents.
Security: Old IDs lack modern anti-forgery features.
Automation: Our verification partner (Ondato) uses AI to read the MRZ. If your card does not have those lines of text at the bottom, the system cannot verify it as authentic.
Latvian regulation: The Law on the Prevention of Money Laundering in Latvia requires us to use "reliable and independent sources." Non-machine-readable documents are no longer considered sufficient for remote digital onboarding.
5. Verification success tips
Appearance: If your appearance has changed significantly (for example, you grew a beard) since your passport photo was taken, our compliance team may need to perform a manual review.
Lighting: Avoid using a flash. Natural daylight is best to prevent "white spots" on the document's plastic surface.
The selfie: When taking your selfie, ensure you are in a neutral environment with a plain background.
6. Official regulatory resources
For those who wish to read the specific legal frameworks governing these requirements, please refer to the following official sources:
European Union regulations
Regulation (EU) 2019/1157: On strengthening the security of identity cards of Union citizens and of residence documents.
The 5th Anti-Money Laundering Directive (AMLD5): The overarching EU framework for financial security and identity verification.
Latvian national regulations
Latvian Identity Documents Law: Specifies the types of documents recognized by the Republic of Latvia.
Law on the Prevention of Money Laundering and Terrorism and Proliferation Financing: The primary law regulating how Debitum must verify its clients.
Latvijas Banka (Bank of Latvia) guidelines: Information on financial integrity and AML requirements for licensed firms.