Personal Identification to open an Account
Why do building societies and banks ask you for proof of your identity?
Since 1994, when the Money Laundering Regulations became law, all building societies, banks and other businesses providing financial services have had to put procedures in place to stop criminals from using them to launder their ‘dirty’ money. These include the need to obtain proof of identity and address from anyone who wishes to open an account or buy any financial product or service from them.
What is money laundering?
Money laundering means the methods criminals use to hide and disguise the money they make from their crimes. The term laundering is used because criminals need to turn their ‘dirty’ criminal money into clean funds that they can use without arousing suspicion. Getting it into the financial system means that it becomes harder to trace and confiscate. Drug traffickers, armed robbers, terrorists, burglars and those who defraud members of the public all need to launder the proceeds of their crime.
What has this got to do with building society and bank accounts?
The first step in the laundering process for criminals is to get their money into an account with a building society or bank, often using a false identity and address. They can then transfer it to other accounts, here or abroad, or use it to buy other goods or services. It eventually appears to be like any legally earned money and becomes difficult to trace back to its criminal past. They can then spend it, or as is often the case, use it to fund more crime. Building societies and banks are not only required by law to prevent this, but they are determined to stop criminals who wish to use them to launder the proceeds of their crimes.
How could this affect you?
A key defence against money laundering is to prevent accounts being opened in false identities. Anyone wishing to open or operate an account will therefore be asked for separate proof of identity and address, and often date of birth. Whatever type of account you want or whatever you want to use your account for, checks will still need to be made.
The fact that these checks are carried out does not mean that you are suspected of money laundering. Criminals try to appear to be normal law-abiding customers; for example they may try to open a number of accounts using small amounts of money. So it is necessary to make checks on everyone. Consequently these checks will be needed when you open your account with a building society, a bank, a credit card company, or a supermarket. A criminal could falsely use your identity if these checks are not in place.
What proof of identity will you need?
The normal standard required is to obtain paper copies of documentation to evidence the proof of identity and the proof of address.
We are currently trialling a new way to identify customers electronically. To do this, we now carry out searches with credit reference agencies who supply us with relevant detail including information from the Electoral Register. The searches will not be used by other lenders to assess your ability to obtain credit.
If we cannot verify your identity and address by this method, we will ask you to provide paper documentation instead. Full details of these requirements are listed below.
Accounts opened by visiting a branch
If we are unable to electronically identify you, whether you are opening a savings account or taking out a mortgage we will need originals of ONE of the following to provide proof of personal identity:
List A
- Current UK Drivers Licence
- Current UK Passport
- Benefit or Pension Book
- Current Inland Revenue Notification
and an original of ONE of the following to provide confirmation of your address:-
List B
- Latest Council Tax Bill
- Latest Mortgage Statement
- Latest Bank/Building Society Statement
- Latest Utility Bill
- Latest Insurance Renewal Notice
Accounts opened by post
If we are unable to electronically identify you, we will need a certified copy (see below) of ONE of the following to provide proof of personal identity:
List A
- Current UK Driving Licence
- Current UK Passport
- Benefit or Pension Book
- Current Inland Revenue Notification
In addition to this, if you are opening a savings account we will need TWO originals from the list below. If you are taking out a mortgage we will need ONE original from the list below. We need this identification to provide confirmation of your address.
List B
- Latest Council Tax Bill
- Latest Mortgage Statement
- Latest Bank/Building Society Statement
- Latest Utility Bill
- Latest Insurance Renewal Notice
Why a certified copy?
For security reasons when you open an account by post please DO NOT send an original document from List A. We will accept a photocopy of a List A document provided it has been certified by one of the following:
A Member of Parliament, Justice of the Peace, Commissioner of Oaths,Officer of the Armed Services, a person registered with or approved by the FSA, Police Officer or a member of a nationally recognised professional body (e.g. a Solicitor, Barrister, Accountant, Doctor, Nurse (SEN or SRN),Chemist, Optician, Banker, Surveyor or Valuer).
Please note that the photocopy must be certified by writing “I certify that this is a true copy of the original”, and then signed and dated by the certifier. In addition we will require the certifier to print their name, status, professional body they belong to and contact details.
Please note that if you do not provide suitable identification we will not be able to process your application.
Do I need to provide proof of identity again if I open another account?
No. We are required to identify you, the number of accounts you open is irrelevant. However, we are required to review and keep up to date the identification information we hold. You may, therefore, be required toprovide proof of identity when you make changes to an existing account such as a change of address.
Do the same requirements apply to joint accounts?
Yes. Both account holders must be identified either electronically or via paper documentation.
What if I can’t provide the documents suggested?
There are exceptional procedures in place to help customers who cannot provide the preferred documents.
Don’t be put off by the mention of passports and driving licences. These tend to be the documents that are preferred because they are official documents and most people can provide them, but they are not the only way of enabling us to satisfy ourselves of your identity.
Many people have reasonable grounds for not being able to produce the recommended documents. For example, they may have never been abroad, so do not have a passport; have never learnt to drive, or their spouse pays the household bills. To help in these cases all building societies and banks have procedures that permit other proof of identity and address to be accepted. These procedures may, for example, include a letter from the matron of a residential care home for the elderly or housing association tenancy agreement.
Please discuss with a member of staff what sort of documents you can produce. If necessary, the member of staff can refer your application to someone who is authorised to decide in exceptional cases.
Please remember though, that the law requires that you must provide satisfactory proof of your identity and address. If you cannot meet these requirements, then under the law we must not open an account for you.
Can’t the bureaucracy be simplified?
The law requires that we have satisfactory proof of your identity and address.
The proof needed may change from time to time: criminals are always looking for new ways of impersonating innocent parties. Building societies and banks will continue to work with the Government to ensure that there is sufficient flexibility within the system. Our aim is to ensure that all genuine applicants can have access to accounts and financial services. You can help by thinking about the documents you can supply and by discussing your situation with staff if you have difficulties.
Please help us to prevent crime, and the laundering of the proceeds of crime, by being patient when staff ask you to provide documents to prove your identity and address.
You can also help prevent crime against yourself and others by maintaining the confidentiality of your account details and identity documentation.