Frequently Asked Questions (FAQs)
Why do I need to prove my identity even when I am a longstanding client of a firm?
All banks, building societies and businesses providing financial services are required to have in place procedures to guard against money laundering.
What is Money Laundering?Money laundering is the process used by criminals to try to hide the proceeds of their criminal activities. Criminals try to "clean" their money so that it can be used without arousing suspicion. They often attempt to do this by introducing it into the financial system, often moving it in and out of different financial products so that its origin becomes harder to identify. A common method is to use a false name and address to set up a bank or building society account, from which the funds are transferred to other accounts, invested or used to buy other goods. The more complex the route, the harder it is to trace the money back to its criminal beginnings.
Why should money laundering concern me?
It makes crime pay. It enables drug-traffickers, terrorists, smugglers and other criminals to expand their operations.
It increases the cost of law enforcement. As more government tax revenue has to be spent on fighting crime this indirectly takes money away from honest taxpayers.
Why do I need to prove my identity?
The fact that you are asked for these documents does not mean that you are suspected of money laundering. Criminals try to appear like honest customers and may use a variety of laundering vehicles with relatively small amounts moving through each one. They may also fraudulently use the identity of an innocent individual in order to succeed. Identity checks therefore need to be performed on all customers.
The UK's financial regulator, the Financial Services Authority, is responsible for enforcing the UK's money laundering rules. Click here to read the FSA's FAQ on money laundering.
How can I prove my identity?
There are a number of ways of proving that customers are who they say they are. One of these is to obtain appropriate documents that can reliably confirm the name and address of a person. You will normally be asked to provide proof of both your name and address, i. e. two documents issued by an official authority.
To prove your name, an APCIMS member will usually ask for either:
- a passport
- a driving licence or
- an Inland Revenue tax notification
This is because these documents usually have a photograph on them and cannot easily be forged.
To prove your address, you may be asked to provide:
- a recent utility bill (but not a mobile phone bill),
- a current council tax bill, or
- your driving licence (as long as you haven't already used it for proving your name).
If you approach the firm via post, telephone or email rather than in person, you will need to supply certified copies of these documents. Please do not send originals of valuable documents such as passports or birth certificates: sending certified copies avoids the risk of loss in the post.
What are certified copies and how do I get them?
Certified copies are duplicates of documents, which a person of professional standing has stated to be genuine copies of the original documents. People who are able to provide you with certified copies include:
- Solicitors
- Bank Managers
- Stockbrokers
- Investment Managers
- IFAs
- Accountants
- Teachers
- Doctors
- Ministers of Religion
- Justices of the Peace.
The person certifying the copy has to see the original and should write on the copy "I hereby certify this to be a true copy of the original"; where there is a photograph he or she should write "I hereby certify this to be a true likeness of …." next to the photograph. The person should then write his or her name, address and profession on each copy and sign and date each one. There may be a charge for this service.
It is not possible to accept a copy of the certified copy.
What if I can't provide the documents requested?
If you are having difficulty, just contact your APCIMS member to discuss what other forms of proof might be acceptable.
But please be patient through this process - help to combat crime.
Government information leaflet
Click on the link above to read the Government's information leaflet which explains why these checks are now necessary.