Halifax ID Verification

crittertog

Hi all,

My relatives recently tried to transfer an ISA to one of Halifax's fixed-rate ones from another provider. After being told that the application forms couldn't be sent directly to them (apparently you have to apply in branch, by phone, or online), they went through a lengthy phone call, during which they were asked a lot of seemingly irrelevant questions (job, employer, etc), only to be told that their identity couldn't be confirmed electronically as they weren't an existing customer, and that the forms would be sent to the local branch, where they would have to take 2 forms of ID, 1 of which must include a photo. As it's utterly inconvenient to get to the local branch, that's not happening. On asking "just what the heck?!", the Halifax representative blamed government regulations.

Is this normal for Halifax's ID verification process, or was the person on the other end of the phone being a bit daft? They've never had a problem having their identity verified electronically via the electoral register as a new customer before ...

ChiefGrasscutter

The rules on ID checks are set by the government to prevent money laundering.
How they are implemented is up to the savings group.
You may pass the electronic check on one savings group and not another
The elctronic check is far more complex than merely a check of the electoral roll and accesses many other databases. It is quite easy to fail the check and be requried to supply paper documents - I do every time although I've lived here for many decades - I just accept it as one of those 'things' in life.
If you fail the electronic check the precise details of what who have to supply, in what form, certified by whom, by post or in person are laid down by the individual savings group - and generally listed on their website.
I am however suprised at the photo requirement - I was not aware that this was in the regulations laid down by the government or in any savings group's individual requirement: of course if you supply a passport as one of the ID's then a photo would appear by default.

If you decline to comply with them they will not open an account for you: simple.
This has been happening for many year now - it is not new.
Even long standing customers may have to supply ID if their account was opened so long ago that is pre-dates the ID regulations so the bank has nothing on file. The fact that they have lived at the same address for xx years would not be sufficient.

The world has moved on since the days when you went into your local branch possibly even without ID and opened an account there and then.

dunstonh

Is this normal for Halifax's ID verification process

It is normal for every provider. If the electronic method fails, then you have revert to the traditional method to prove identity and address.

They've never had a problem having their identity verified electronically via the electoral register as a new customer before ...

If you were a borderline pass before then new data may have arrived on your file or old data may have dropped off that may take you to a borderline fail.

crittertog

As there appears to be some confusion, I was asking not asking about the anti-money laundering regulations (well aware of them), but if it is normal for Halifax to allow the electronic verification of identity only for existing customers (as this was the reason given) - from what was said, they didn't even try to do an electronic verification as they were not an existing customer. They're already looking elsewhere, but I'm curious as I was considering transferring an account to them as well (but won't if this is the case).

ChiefGrasscutter wrote: »

It is quite easy to fail the check and be requried to supply paper documents - I do every time although I've lived here for many decades - I just accept it as one of those 'things' in life.

Problem with that is when you live in a rural area and can't get to the branch when it's open (which is why I said it was utterly inconvenient). Especially as banks seem to believe that everyone has a modern (photocard) driving licence and/or passport ...

dunstonh

but if it is normal for Halifax to allow the electronic verification of identity only for existing customers (as this was the reason given) - from what was said, they didn't even try to do an electronic verification as they were not an existing customer.

I cant answer that. However, I can say that it is required that ongoing checks are made if certain transactions/events occur for existing customers. So, asking existing customers for physical ID on these events would not be popular. Use of the electronic system allows them to do it simply and without raising it with the individual. An electronic check costs money. So, it may be a cost issue. Or it may just be a member of staff not aware of rules or it it may their requirement. Remember that Halifax received a large fine for failing to comply with money laundering ID requirements and may have been forced to bring in measures that others do not have.

crittertog

dunstonh wrote: »

I cant answer that.

Indeed (I know the internal workings of XXX bank is only really known to those that work for them) - I was wondering if others on here had been told something similar, as it sounded rather ridiculous to me (or, if you're being cynical, a ploy - "would sir like to invest in this stock market-linked product instead").

dunstonh wrote: »

Or it may just be a member of staff not aware of rules

That's what I was wondering

dunstonh wrote: »

Remember that Halifax received a large fine for failing to comply with money laundering ID requirements

Managed to miss that one!

ses6jwg

The regulations for for Anti money laundering procedures are set by the FSA and each individual bank sets their own policies and procedures around these.

As the FSA has fined a number of banks over recent years for failing to comply with the regulations stringently enough and therefore most banks have now gone over and above the requirements set by the FSA, they will however each differ e.g. Santander can use a provisional driving licence, other banks will not accept it. There are other examples.

The fact of the matter is however, that if they say you must produce ID - then you must produce ID.

If you do not like the fact that you have to produce ID you can either:

A) Make a complaint. It is likely your complaint will be rejected as the bank has simply complied with FSA regs and you would be asked to refer to the Ombundsman who would also likely side with the bank.

Go elsewhere.

jfh7gwa

crittertog wrote: »

As there appears to be some confusion, I was asking not asking about the anti-money laundering regulations (well aware of them), but if it is normal for Halifax to allow the electronic verification of identity only for existing customers (as this was the reason given)

You might find my thread here interesting - partner and I both attempted to get a Halifax account recently.

His electronic checks came back fine, his account was open about 3 days later, got his details for the account through in the post by the end of that week - very speedy. He has never been a customer of HBOS that he can recall.

Meanwhile, I end up having to go into a branch to hand in a signature mandate form and provide proof of ID, the ID never got to their head office, so I had to go in a 2nd time and do it all again... 6 weeks later my account has only JUST been opened. With a slight mistake on the account, no less (wrong title, easy enough to fix.. but still....). Massive hassle all around, really.

Basically, I think the problem is with ME, not with Halifax, as they're not the first institution to have to verify me manually. I'm trying to fix this by updating all my financial products to use the same format of my name (no middle name on accounts, basically).

Anyway, based on this experience, of trying to open 2 accounts in December - I'd say that it's NOT true that ID checks are done electronically only for existing customers. Certainly not been our experience.

opinions4u

An existing customer with an active relationship with the bank won't need electronic verification.

So the staff member informed you incorrectly. Electronic verification is more likely to be used for non-customers.

Problem with that is when you live in a rural area and can't get to the branch when it's open

And they use EV to try and reduce the need for this. But it doesn't work every time. All their branches open on Saturdays.

Remember that Halifax received a large fine for failing to comply with money laundering ID requirements

Bank of Scotland. Although the fine came after the formation of HBOS, it related to BoS procedures prior to that.