Existing customer, opening new account - need ID?

Pollycat

I was chatting to my friend last night and she recently went into the branch of a financial instution where she has a joint mortgage with her OH (just paid up), a current account, a cash ISA etc (I know, I know - "eggs in one basket" and all that :rolleyes: ).

Her & her OH wanted to open a savings account and they were told they'd need ID (passport or driving licence plus proof of address) - and that it was a requirement by the FSA.

Is it me or does that sound strange for existing customers?
I appreciate that if someone walks in off the street there has to be checks, but they've been doing business with this place for the last 25 years.

Just curious, really.

steady__eddie

The same thing happened to me a couple of weeks ago although I had only been a customer with them for about three years so I suppose they felt that they don't really know me yet ! The nearest branch however is about 250 miles away and I didn't fancy the hassle and expense of certificated copies so I decided to sit that one out.
I am of the opinion from personal experience, that each institution interprets money laundering regs in a way that is convenient to themselves.

apt

I don't think there's much logic to the process. My recent experiences:
1. Britannia - no ID needed as an existing customer.
2. A & L - very fussy re ID even though I have several accounts with them. Gave up on them in the end.
3. AA and Birmingham Midshires. Supposedly the same outfit, but the AA took two weeks longer to confirm my ID even though the Birmingham Midshires account came first.
4. Principality - all done quickly and electronically although I wasn't an existing customer.

rb10

Pollycat - banks used to just see new customers' ID, but not record it on a computer system, so if your friends haven't opened accounts recently, but just have the ones from some time ago, it's possible that the details of their ID isn't recorded on the system.

I'd have thought that now that the bank has seen & recorded their ID, they shouldn't need to show it again.

Hazzanet

Norwich and Peterborough by any chance?

Pollycat

It was Abbey.

Does the FSA insist that ID be recorded - or is that the interpretation that different financial institutions put on it?

grnglide

Pollycat wrote: »

It was Abbey.

Does the FSA insist that ID be recorded - or is that the interpretation that different financial institutions put on it?

It is all down to the individual institutions interpretation of the rules. Presumably if they havent done the checks and money laundering is detected the institution will face some kind of penalty.

The fact that you have had an account for a long time does not, necessarily, mean that you are the person you claim to be. The account could have been opened under false circumstances many years ago or somebody may have stolen your identity since.

The option to keep your name off the public electoral register (which I would imagine most people use) removes one of the prime sources of validation. The fact that being on the electoral register proves nothing is irrelevant of course!

BenL

Some banks can do the checks electronically to cut down on the proof of address required.

If you come up as on the voters role for instance one of the id requirements is satisfied.

When i worked for Abbey exisiting customers were required to show 1 name id and 1 address id.

New customers needed 2 of each but is the system reported on the voters role at the current address an address id could be dropped.

Serial numbers of passports and driving licences should be recorded by the advisor opening the account, utility bills ideally should be photocopied and put with the documentation for scanning and/or offsite storage.

dunstonh

Generally, if the ID they already have on file is still in date then they can continue to use that. If the ID that they took in the past is out of date then they should get new ID.

So, existing customers can often be asked for new ID even if they have supplied it in the past.

isofa

Hazzanet wrote: »

Norwich and Peterborough by any chance?

This has never happened to me in N&P before...

evenasus

Hazzanet wrote: »

Norwich and Peterborough by any chance?

Having opened numerous accounts in the last couple of months, Norwich & Peterborough was by far the quickest and easiest one to open.

Never had an account with them before but they still managed to verify my identity electronically, almost immediately.:D