ID Checks

ID Checks

Didn't find your answer?

When we have a new client we always confirm their identity by asking for one photo ID doc (Passport or Driving licence) and one utility bill or similar.

We then inform HMRC that we will be acting by submitting a 64-8 online.  The client then receives the code which further confirms the details and address.

Is this sufficient? There are a number of companies that charge to verify a person but is this overkill or do we need to do more?

Most client expect to provide this info as it seems the norm now so only takes a few minutes to take copies etc.

Thanks

Replies (5)

Please login or register to join the discussion.

David Winch
By David Winch
06th Oct 2014 19:08

Individual client whom you meet face to face

If the client in question is an individual (as opposed to a limited company or unincorporated club etc) whom you meet face to face, who is instructing you to do routine accountancy / tax work and whom you have no reason to believe is a PEP, then this should be sufficient IMHO.

Obviously if the client is a limited company then a quick check of the Companies House website is required (and you may need to ID two or three of the directors / shareholders if they are not already identified as clients).

If the client is out of the ordinary (for example one whom you will never meet face to face) then further initial ID verification is likely to be required - such as using one of the online services.

Of course the real fun begins when the client gives you grounds for suspicion of money laundering by someone . . .

David

Thanks (5)
By djn24
07th Oct 2014 08:54

Thank you.  

Thank you.  

You've put my mind at ease as what you have suggested is exactly what happens now- check on companies house etc.

 

I would be suprised if it ever would happen but, what if the ID docs they gave were fake? Unless it's obvious then I would take those as proof and carry on. What would happen in that situation?

 

Thanks (0)
David Winch
By David Winch
07th Oct 2014 10:20

Fake documents

You are not a specialist document examiner & would not be expected to spot a fake document.

However if any client starts asking you to provide unusual services (such as using your client bank account as a means to pay the client's funds to third parties) then that should set alarm bells ringing in your head & you would (i) refuse to do it and (ii) consider making a Suspicious Activity Report.

So it is the 'fake client' rather than the 'fake document' you would be expected to spot!

David

Thanks (4)
By djn24
07th Oct 2014 10:28

Makes sense

Thank you.

Thanks (0)
avatar
By Gone Sailing
08th Oct 2014 14:40

Social Media Presence

I once asked a new client if they had any social media presence, as I wasn't meeting face to face in the foreseeable future.

I thought it was a good secondary check, and it turned out, although an independent professional, had no social media presence whatsoever, and they thought it was a peculiar question.

Not sure if I'll try it again.

Thanks (0)