Remote international clients and beneficial owners probably cost the MLRO the most time, effort and uncertainty in the whole customer due diligence process. Typically it involves the customer getting documentation notarised in their country of residence, at an average cost of around £80, then getting a notarised copy to the MLRO. Often the notary information is not in English and needs translation, and then there is the problem of verifying the notary against local listings, quite often this is just not done. As with all paper based verification systems there are no standard checks against sanctions and PEP’s or any other alerts.
For a simpler solution all you will need is a high resolution image of the Individual’s document and SmartSearch will be able to validate to a level 3 Immigration Standard. This is the level of immigration officers manning UK entry points. The documents could be passport, ID cards, driving licence or others accepted as ID in the country of issue.
The system has three levels, dependant on your requirements and risk assessed.
The Basic level: – Entry of the customers, name, address, date of birth and gender then a high definition colour scan of the document is up loaded into the system confirming country of issue. The software performs algorithmic checks on the information input and on the document as being correct. A Full search against the Dow Jones Watch List is also made looking for any matches on worldwide Sanctions or PEP’s lists.
The Enhanced Level: – Does as the basic but has addition checks on font, typefaces and security feature of the document are looking for any evidence of the document displays no elements of forgery or counterfeit. The document is also reviewed physically by person who is trained to level 3 Immigration Standard who gives their expert opinion on the results.
Customer Verification Biometric Facial Recognition: – This combines both verification of a government issued document which if you have a good copy of you can load directly from your computer or send an upload link to your client via a free SMS message which is required for the Facial Recognition element, the results include both document check and facial recognition results.
ID Theft and Fraud
As with all remote customers there is always the risk of impersonation fraud, to manage that risk an additional check should be undertaken, such as;
Requiring a nominal payment be made by an account in the customer’s name, for example a cheque for a nominal amount, for this who have card processing this may be simply processing a £1 payment or recovering the cost of the search
Telephone contact with the customer or a ‘welcome call’ to verify aspects of the information already provided.
Communication with the customer at his address provided such as the duty of care or letter of engagement, which require acknowledgement or return.
Requirements for International Document uploads
If you do not have access to a scanner this can be also be done by using our SmartIDV which enables our remote clients to take an ID document image and email that image for uploading to our platform for verification. This greatly reduces the risk of input images being rejected as a result of poor quality or distorted image alignment. This App will ensure your submitted image is of the correct resolution and the image is squarely aligned eradicating image distortion, ensuring we can validate the document without delay.
The SmartIDV App is free of charge to all our customers; it can be down-loaded from the Apple Store or Google Play Store now.