Money Laundering Scam Alert
Some commercial electronic verification companies may contact you stating that all client due diligence verification must now be done electronically making paper copies no longer acceptable. This is just a marketing ploy and is not correct in any shape or form.
The law and guidance on conducting client due diligence remain as set out in the Money Laundering Regulations 2007 and issued guidance You should continue to make your judgments based on the risk assessment of the client and/or the services they offer.
The Regulations are clear that verification of a customer’s identity maybe by documents, data or information, or even a combination of different types of evidence. Newly released FATF Recommendations do recognise the use of technology in conducting business and the need for technology to be involved in the customer due diligence process. This is not at the expense of more traditional methods.
We, at BTC Corporate & Compliance are great believers in electronic verification; however it is just one of many tools available to the regulated firm, which they can use in the given circumstance. This is one reason why we do not commit firms to contracts and minimum usage when using our electronic verification services.