Money Laundering Regulations - proof of identification

X-No-Archive: yes In message , Dagobert writes

Which is one of many reasons why the UK needs to re-introduce ID cards.

There does seem to be quite a lot of variation in what banks will accept.

come up with a list of documents which they feel satisfy the requirements.

What we are always told is that the different lists reflect different legal opinions - it seems there arnt many previous legal judgements to base it on, therefore different lawyers come to different conclusions.

It doesnt seem the regulations actually specify anything AFAIK - just an outline. However it does seem that the government were much more prescriptive when they set out the regulations surrounding Basic Bank Accounts.

Ian

So no A&L accounts for anybody who doesn't drive or travel abroad. Did anybody notice that the guy who was recently found guilty of using a false id was found out because he couln't remember the name of his school? I can't remember the name of my school so am I not who that I say I am.

Kevin

This is what I thought.

Do you have an idea why some (or in my experience most) banks have procedures in place for postal proof of identification - a necessity for online banks anyway - and some others don't?

For instance, to my amazement, HSBC has no procedure in place for postal proof of id (despite the fact that their division FirstDirect does and despite the fact that HSBC are closing 52 branches this year).

I recently posted to a similar thread in uk.legal 'Proof of identity'. I'll just copy it here....

------------------------ Well, the FSA handbook is here...

The law society also have some (better) guidance "5045

In general under the MLR, there are two tests:

1) they are subjectively satisfied about your identity, and 2) that they have objective evidence of your identity.

Identity consists of

1) proof of name, and 2) separate proof of address

beyond that it is basically up to the bank. I think the banking guidance was updated recently (or will be) because of the number of people who got unnecessary hassle opening bank accounts.

Here's a reference for that (14 March)

---------------

The new bank guidance (jmlsg link) seems to suggest that most 'face-to-face' bank-users should be able to use just a passport, but it is worth reading the relevant sections in detail.

But only if you gave them the name of your school originally. If you didn't, then how will they know whether you are telling porkies or not?

Rob Graham

Sorry, I should have been more specific. For postal proof of identification, I was required to provide a certified copy of passport or driving licence. Of course, there are people who neither drive nor travel.

For those who are able to visit a branch, other possibilities are available:

page=customer-id Provision of documents is only necessary where electronic checks fail. If this is your first account or if you don't vote - tough.

I seem to remember this was debated a few years ago - the question to the banking rep was if I produce my ID card are you happy it is me and are you able to act upon all my instructions at that moment in time, including the opening of new accounts.

The banking rep replied and made it clear that the ID card alone would not allow you to withdraw anything your account had in it - certain limits would still require additional authorisation. The banking rep wasn't sure that banks would be given sufficient access to the data held on the card and the associated "back-end" databases which supported it., without which the validity of the card could not be assesed.

So ID cards probably aren't the answer after all.

When British Gas meter readers show you their pass at the door - how do you know the pass is valid?

And how exactly is that going to aid proof of identification? AFAIK, the proposed id card is not going to show the address, in which case financial institutions would still have to request proof of address.

The problem is not the lack of id cards; the problem is that the Government failed to be more specific.

In message , Dagobert writes

Estate agents have to do this aswell when someone puts a house on the market and, AFAIK, one document was required for identification and needed a photo, the other was proof of address. Looks like Abbey may not be doing it right.

Strange that, they were at the wrong end of a big fine for getting it wrong.

tim

They don't. That is why the banks have different procedures.

Interesting - in that case, how have I been able to successfully apply for credit cards with American Express and Nationwide recently without sending them anything but a signed copy of the credit agreement?

Yes, they have my address and could check the electoral roll, etc., but no other proof of who I am.

John.

Was there a DD form to pay the balance on the credit card?

Because the definition of 'procedures' is non-specific.

The money laundering regs don't seem to apply to credit cards, which is why it is easier to open a credit card account than a savings account.

Yes, but it was optional so I didn't fill it in (I don't know which of my accounts I want to pay the balance from each month).

John.

One of the many poor reasons, certainly.