DOI: 10.69554/brii1893 ISSN: 1750-1814

A Natural Person Identifier for global payments : Next steps

Sanjay Dharwadker
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As financial activity becomes increasingly global, institutions need a reliable way to recognise individuals across borders. As the successful adoption of the Legal Entity Identifier demonstrates, international identification frameworks are achievable when standards and oversight are aligned. Developing an equivalent system for natural persons, however, is considerably more complex. A Natural Person Identifier (NPI) would need to operate across diverse legal systems, privacy regimes and administrative traditions, and would require levels of cooperation that nation states are yet to reach. This paper examines what identity numbers are, how they are created, and the legal frameworks that govern their use. It considers what an NPI would need to achieve in the context of global financial transactions, and which international bodies could act as trusted clearinghouses for cross-border verification. The paper reviews how passports (ie machine-readable travel documents) have become widely accepted as proof of identity, and explains the processes that make them secure and internationally trusted. Drawing on this example, it explores whether a similar model could support a global NPI, and how standardisation groups and United Nations bodies might work more closely with the payments industry to develop a practical solution. The paper is intended for policymakers and practitioners involved in identity management, standardisation and the implementation of NPIs in financial systems. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.

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