In the normal course of business, I need to obtain certain information and documents from or about you for anti-money laundering and counter terrorism financing purposes. The aim of this leaflet is to explain these legal requirements and how I aim to fulfil them.
Under the Anti-Money Laundering (AML) regulations, accountancy firms and other regulated service providers must gather specific information about their client. This includes all directors (or trustees) of incorporated organisations. The regulations require you to provide me with sufficient information to identify you. If you (or all directors or trustees) do not provide the information and/or documentation requested, I will not be able to proceed with the engagement or will have to terminate an existing engagement. The appropriate legislation is The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017.
Under the Economic Crime and Corporate Transparency Act 2023 Companies House have powers to require all directors of companies to register their identity with Companies House.
What is money laundering?
Money Laundering is the process used to disguise the origins of funds generated by illicit or criminal activities and making the funds appear to have come from a legitimate source.
For Individuals I will need:
Your full name, date of birth and residential addresses, then for proof of identity one of the following:
a valid passport;
a valid photo card driving licence,
a national identity card (non UK nationals issued by EEA member states or Switzerland);
an ID card issued by the Electoral Office for Northern Ireland;
recent evidence of entitlement to a state, or local authority funded benefit;
an instrument of a court appointment such as a grant of probate;
an HMRC issued tax notification;
Plus one of the following for proof of address and date of birth if selected document above does not contain this:
a utility bill issued within the last three months (but not mobile phone);
a bank or credit card statement issued within the last three months and addressed to your current residential address;
your most recent original mortgage statement from a recognised lender, etc;
a current non photocard UK full driving licence (older version);
documents issued by HMRC such as PAYE coding notices and statements of account (but not any employer issued form);
a firearms or shotgun certificate; or
a solicitor’s letter confirming a recent house purchase or land registry confirmation (where you must also provide verification or previous address).
If you are unable to provide an original of your document, copies are acceptable if they have been certified by a recognised professional such as a solicitor, bank official, accountant, or notary public. I may certify a photocopy of the original if the original is presented to me on meeting you. Alternatively you may request an electronic biometric test. Please see relevant section below. These verifications do not affect any credit ratings.
Who can certify the documents?
Under Anti-Money Laundering (AML) regulations, certain professionals are authorised to certify documents of evidence. These individuals may also include well respected persons in the Community, often referred to as someone “of good standing” or as “trusted referees.” Here are some of the professionals who can certify documents:
Financial Advisers.
Regulated Financial or Credit Institutions, including intermediaries.
Commissioners for Oaths.
Justice of the Peace.
Notaries Public/Practising Solicitors.
Practising Chartered & Certified Public Accountants.
Councillors
Ministers of Religions
Dentists
Teachers or Lecturers
Embassy/Consular Staff.
Police Officers.
The person should not be related to you, living at the same address or in a relationship with you. You may not self-certify.
How to certify a document?
Take a photocopied document of the original and the original and ask the person to certify the copy by:
Writing “Certified to be a true copy of the original seen by me” on the document
Signing it and printing their name under the signature
Dating it and adding their occupation, address and telephone number
The person certifying the document may charge you a fee.
Certifying a translation
If a document is not written in English then it will need to be translated into English and the translator should also confirm in writing on the translation:
that it’s a ‘true and accurate translation of the original document’
the date of the translation
their full name and contact details
There are a number of professional service companies able to provide this.
Performing a biometric check
My compliance software provider Wolters Kluwer offer the option of a more convenient biometric check. They use APLYiDTM to provide this service. Details can be found on their website at www.aplyid.com. To take advantage of this I will need your full name and address, date of birth, an email address and a mobile telephone. You will then receive an SMS text message from Wolters Kluwer containing a link to provide the necessary information. This will require you taking a selfie and a photo of a photographic Identity document such as a passport or driving licence. If the document does not contain your address then a further document will be required. AML checks will then be made on name, date of birth and (UK) address against various positive datasets, such as credit bureaus to verify the individual’s identity. Checks are also made against negative datasets such as Politically Exposed Persons (PEPs) and Sanctions watchlists and mortality databases. For an individual to pass an AML Data check they must match two positive datasets and two negative datasets, commonly referred to as ‘2+2 Matching’. I will then be provided with a report of the outcome. The SMS text link provided is active for seven days before expiring.
Is there a cost to using the biometric check?
There is a cost to my Practice for using the services provided by Wolters Kluwer for the biometric checks. My Practice will not make a charge for checks being performed as a result of my review and updating of my records. However there may be a discretionary charge of £15 plus VAT for any changes or additional individuals to cover my costs. This charge may also be made if there is a repeat biometric check following a failed test.
What happens if the biometric check fails?
Firstly, make sure your mobile telephone is a smart phone and it has sufficient storage and memory capabilities. There may be circumstances when the name and address may fail the checks. This could be because of a recent change of address or recently moved to the UK; possibly not using the legal name (different variation of the name), or recently married. Another reason for a failed check would be where a Virtual Private Network (VPN) is being used. If any of these are likely to be the case then it is better to provide an alternative method. This will be required if the check is performed and does fail.
The check may also fail because of suspected tampering with the document. Extensive checks on critical aspects of the ID, including measurements, alignments, and the analysis of security features that are unique to the specific document template are made. These factors are verified to ensure that the document adheres to the expected standards for authenticity. Although there are other factors that might trigger a tampering flag i.e., document is worn out, low photo quality (grainy, blurry photo), lighting conditions of the photo etc. If this is likely to occur the it is best to use an alternative method. If biometric verification fails, we will guide you through an alternative method to ensure compliance.
International Clients
A biometric check is about where the individual resides rather than their citizenship. If you have an international document but have a UK address then a biometric check can be performed. If you live outside of the UK then a biometric check cannot be performed regardless of the nationality or document. In this case it is recommended that the services of a Notary be used. Some provide the convenience of online submission, translation and certification. An international ID card containing address and date of birth is likely to be the most convenient type of document to use. Please contact me if this may be relevant.
Why am I being asked?
The regulation requires me to perform on-going monitoring and keep up with any changes in legislation. My review may identify changes occurring in individual circumstances or changes in any businesses you control. The monitoring may identify missing or incomplete documentation or changes in regulatory requirements meaning I need to obtain or update my records.
What can you do to avoid delays?
It is very important you start preparing all information and documentation as soon as possible to reduce the risk of any delays to your service.
How will your personal data be collected and protected?
I am committed to providing you with the highest level of security and convenience. As part of my services, I may use electronic methods, including biometric checks, provided by trusted third-party providers. If you provide documentation electronically I will provide either secure file transfer methods or collection via third party providers for this purpose. I do not encourage the use of email for these purposes unless there is some form of protection on any documentation. These methods help me ensure your identity and protect your data.
What Data I Collect:
I collect the ID and proof of address documentation you provide to me. This may be used to perform electronic validation checks with the third-party providers. Alternatively I may also collect biometric data as described above. This data is unique to you and helps me verify your identity securely. In this instance I only receive a report of the validation check.
How I Protect Your Data:
Encryption: Your data is encrypted during transmission and storage.
Access Controls: Only authorised personnel can access your data.
Regular Audits: I conduct regular security audits to maintain high standards.
Your Consent: I will always seek your explicit consent before collecting and using your documentation including biometric data. This is normally set out in my letter of engagements with you or your Company. My privacy policy provides detailed information on how we handle your data, retention periods and your rights.
Compliance: My Practice comply with all relevant data protection regulations, ensuring your data is handled with the utmost care. As part of my legal obligations, I may need to report suspicious activity to the National Crime Agency (NCA). This helps prevent money laundering and protect the integrity of the UK financial system.”
If you have any questions or concerns, please do not hesitate to contact info@daybooks.com.