Money laundering Regs

missile

Does anyone else feel these are a complete waste of time. Any self respecting crook can beg borrow steal or even buy a new identify. The only people inconvenienced are honest hard working long suffering Joe Public.

I really hate and have become increasingly concerned by having to send personal identification through the post, e.g. to open an ISA. With the increasing theft of Royal (we "only" loose 1%) Mail, is it safe?

RayWolfe

Calm down dear!

DawnW

I find this a concern too, and won't open an account unless I can take ID stuff into a local branch and have it checked there and then. As you say, the only people inconvenienced are ordinary savers.

dunstonh

You should be on the other end and have to get the stuff for money laundering checks. It can be a right pain sometimes.

However, since I moved to the electronic method it has proven to be far less hassle. The check only costs £1.95 per enquiry - and that is priced at me being a small financial services firm - the big guns could no doubt get that cheaper. You would think more of them would move to it. Especially as the two main electronic money laundering check providers are experian and equifax and the system uses the credit check system which the banks are used to.

pamaris

Funny you should mention this. Just this morning I received my bank details back from selftrade (that I had to send them to open the account). However, I did not receive the certified copy of my passport that I sent to them. Instead I received someone else's bank details! So I phoned the person whose bank details I received and just told them that if they happen to receive a copy of my passport, then please send it to me. I am sending her bank statement to her in the post today. If she doesn't receive my passport (copy), God knows who will!

DKLS

Money laundering is relatively easy, The bank I worked for taught me all about it, and the regs will never put off the hardcore crims, only the amateurs. As you say its always the individual that gets the hassle.

agal

dunstonh wrote: »

You should be on the other end and have to get the stuff for money laundering checks. It can be a right pain sometimes.

However, since I moved to the electronic method it has proven to be far less hassle. The check only costs £1.95 per enquiry - and that is priced at me being a small financial services firm - the big guns could no doubt get that cheaper. You would think more of them would move to it. Especially as the two main electronic money laundering check providers are experian and equifax and the system uses the credit check system which the banks are used to.

From recent personal experience both NS&I and Hargreaves-Lansdown use electronic methods (no seperate ID required). As you say this makes the whole application process much easier.

Chrismaths

Bless the EU and the Treasury who gold plate all the regulations. Waste of time.

The biggest boon to money laundering in recent years has been the €. They introduced €500 notes (so worth around £350), which is the largest denomination of banknote in the world. Between 25% and 30% of the value of euros in circulation is in these notes, and yet no one has ever seen one, and no one accepts them. So where are they all? Either europeans are all stuffing their mattresses with them, or more likely they are used for money laundering.

I remember reading in the FT a few years back a table of the weight of USD1million in various currencies' banknotes. The euro came out the lightest by about 70%. (I think it was around 2.5 kilos).

more on "bin ladens" here

or google it.

SeanW

So where are they all?

All those EU and unelected EC officials that spend hours on needless debates have to be paid in something.

My passport is expired, I don't drive, the only bill I pay is by direct debit (no invoice) and all my bank statements are entirely online.

I find it increasingly difficult to open some accounts. As has been mentioned Hargreaves Lansdown didn't require anything from me, nor did Alliance & Leicester. However, HSBC did even though I was already a customer, Fidelity Investments, Northern Rock, Icesave, Bradford & Bingley all did too. Luckily I had a tax coding notice, and they all accepted a letter from HSBC (I tried my luck, as they told me in email it wouldn't be accepted, but nevertheless was).

(Off Topic maybe, but one of the online betting sites wanted me to scan them a copy of the front and back of my debit card, and send via email or fax)

jonnyb

I work for Experian and know how our "e-identity" product works. It is much simpler and quicker for both lender and customer to use.

It is hard to fake out, because it looks at credit background of individuals, taking into account number of credit records, type of records, and the length of time accounts have been opened.

As already said, real hard crims could probably fake it out, but it would take a lot of time and effort.

If you get lenders still asking for paper docs, ask them why they don't use an electronic method from either Experian or Equifax - the JMLSG (joint money laundering steering group) have sanctioned electronic methods as OK.

missile

Good plug for Experian, maybe great for business users, but .... anyone else tried to get them to correct an error?

It certainly is not the answer. Anyone who has seen Day of the Jackal, knows how to create a new false ID. Anyone who watched the recent TV expose, knows how easy it is to clone someone's ID. Aledgedly you can buy a fake/cloned/stolen ID for £50

ask them why they don't use an electronic method from either Experian or Equifax - the JMLSG

try telling that to the jobswoth at any building society. Would that be the same quango that dreampt up the regs? :rotfl: