Forms of Identification Used for Finance Applications

Identification requirements to prevent fraud and satisfy money laundering requirements

Identification checks are there to help ensure that the person taking out the finance facility are who they say they are, and guard against fraudulent applications and also money laundering.

Identification checks require the applicant to produce 3 acceptable forms of identification and proof of address. The acceptable forms that can be used can be found on a list that is split into 2 sections. Of the 3 items normally required, at least one item has to be from each of the sections.

Each item has to be current and valid. Therefore if out of date they can not be used.

Identification is often referred to as ID and proof of address as POA.

The amount of time that utility bills, bank statements, council tax bills, mortgage statements, insurance documents, etc, can be used as identification proof from their issue date, will vary according to the type of document. A full list of items that can be used for ID is listed below, together with their validity period.

 

Documents that can be used for identification and proof of address purposes

The list is divided into 2 sections, from which a total of 3 items need to be provided with at least one item coming from each list. Some items are included on both lists:

 

Personal Identity Documents

Proof of Identity for Finance

Document Type	Validity Period
Full UK Passport	This has to be current, valid and also signed
Full UK Driving Licence	Has to be current
UK/EU Photocard Driving Licence	Has to be current
Overseas Passport	Has to be current, valid and signed
EEA Member State ID card	Has to be current and valid
Residency Permit	Current and issued by the Home Office
Firearms or Shotgun Certificate	Has to be current
State Pension Book or Notification Letter	Has to be current
Benefits Agency Book or Letter	Benefits Book has to be current
Current Years Tax Code Notification Letter from the Inland Revenue
Sub Contractor’s Certificate

 

Address Verification Documents

Proof of Address for Finance

Document Type	Validity Period
Mortgage Statement or a Mortgage Redemption Statement	Acceptable for 12 months from date shown on the statement
Recent Utility Bill – can be Gas, Electric, Water, Telephone (landline only, NOT mobile phone bills)	Acceptable for 3 months from the date shown on the bill
Council Tax Bill	Acceptable for 12 months from date shown on the bill
House or Motor Insurance certificate	12 months from the start date of the policy
Current Full UK Driving Licence	Mobclr paper Document/old style
UK/EU Photocard Driving Licence	Has to be current
State Pension Book or Notification Letter	Has to be current or acceptable for 12 months from date of letter
Benefits Agency Book or letter from the benefits agency	Has to be current or acceptable for 12 months from date of letter
Local Authority Rent Card	Has to be current
Rent Book or Tenancy Agreement
Bank Statement, Building Society Statement, Credit Union Statement or Passbooks	Acceptable for 3 months from the date on the statements
Letter from a Solicitor confirming completion of a house purchase or land registration
Official Documentation from Her Majesty’s Revenue and Customs (excluding P60s)	These are acceptable for 12 months from the date shown on the documentation
Credit Card Statements	Acceptable for 3 months from the date shown on the bill This has to be directly from a main credit card provider or one underwritten by a main provider. The acceptable ‘main providers’ are: HSBC Halifax Bank of Scotland Group Royal Bank of Scotland Group Barclays Lloyds TSB Santander Woolwich Alliance and Leicester Nationwide Citibank Morgan Stanley

ID and POA requirements for joint applications

For joint applications utility bills and bank statements in joint names can be used by both applicants to satisfy the identification and money laundering requirements. For example valid and current passports together with a 2 month old bank statement from a joint account and a 6 month old council tax bill that is addressed to both applicants, would provide suitable identification for a finance facility in joint names.

 

Why are identification and money laundering checks so important?

There is an increasing importance to guard against ID theft and money laundering. Consequently bank, statements and utility bills are increasingly required for many transactions at a time when the banks and utility companies are increasingly moving towards mobclr paperless and online bills and statements.

Lenders, solicitors and finance brokers have to ask for identification when arranging any type of finance facility.

This is not just for there own protection to guard against fraud, but also to meet regulatory requirements, in particular money laundering safeguards. Failure to follow money laundering requirements properly can result in large fines and even the loss of trading licences.

Therefore it is a necessary part of the finance process and short cuts can not be taken, even if you are known personally to the lender, solicitor or broker dealing with your facility.

 

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