The illogical proof of address system: is it really required by law?

SouthLondonUser

Could you please be so kind as to point to the law which states that identity must be verified with proofs of address?

Yes, verifying the identity is a legal requirement.
Yes, doing so via proof of address is a convention.
But is it also a legal requirement?
So is Monzo automatically non-compliant?

gt94sss2

SouthLondonUser wrote: »

So is Monzo automatically non-compliant?

Why would Mondo be non-compliant? Many financial institutions can confirm electronically where someone lives by checking the electoral roll/credit reference agency records.

SouthLondonUser

But not many others require the video, which I think is a great idea because faking a video seems much harder. Also, I am not sure they do the kind of electronic confirmation you mention - if they do, they don't mention it clearly.

gt94sss2

SouthLondonUser wrote: »

But not many others require the video, which I think is a great idea because faking a video seems much harder. Also, I am not sure they do the kind of electronic confirmation you mention - if they do, they don't mention it clearly.

1. Atom Bank have something similar if you open an account with them.
2. Have you read Section 16 of Monzo's T&C?
3. Have you seen https://monzo.com/blog/2017/06/13/identity-verification-upgrade/ ?

SouthLondonUser

Thank you, that's useful. It's not clear to me if 2) means they will ask for proof of address in some cases.
3) was already mentioned, and I already replied that my understanding is that customers who registered in the past need to do the video thing which everyone who signs up now has to do; if Monzo also requires proofs of address, they don't say.

gt94sss2

SouthLondonUser wrote: »

Thank you, that's useful. It's not clear to me if 2) means they will ask for proof of address in some cases.

They will - If they have issues with electronically verifying your details.

eskbanker

SouthLondonUser wrote: »

Oh, dear, I really cannot seem to be able to explain myself, can I?

I don't think Monzo's is a lesser system of verification; quite the opposite: not only is it less of a hassle, it is also much much safer and harder to cheat, IMHO, for all the reasons I have already explained.

Sure, Monzo's current system does not verify the current address. Nor do most banks in most of continental Europe; like I said, is fraud 10 times more common in continental Europe because of this?

Could you please explain why Monzo's is a lesser system, please, and what additional security you get from the Bizantine proofs of address?

Proof of address ties an applicant to a known physical location and thereby they're inherently more traceable should the need arise. Without proof of address it would be substantially easier to open accounts using a false address, such as that of an accomplice who would then deny all knowledge when enforcement time came.

It also demonstrates residence within the UK, which is a key criteria for most financial institutions operating within the UK.

Why do you keep talking about 'Bizantine'? Assuming you actually mean 'Byzantine', this is defined as "excessively complicated, and typically involving a great deal of administrative detail", and asking for one from a lengthy published list of options hardly seems either excessively complicated or involving a great deal of administrative detail.

Sure, it comes over loud and clear that you resent providing this, but ultimately, if you want to borrow a large sum of money from a financial institution then it would make sense to recognise that you need to comply with their terms of business, however much it pains you!

SouthLondonUser

I explained why two gazillion times in this thread. I don't expect any one to agree with me, but I would expect you to at least read what I wrote before replying.

jamie_02

My partner applied for a remortgage last year and the mortgage provider allowed a digital verification by Barclays, despite not being a customer. Apparently there are various organisations (Barclays have signed up) who already digitally verify details/addresses for their own business etc and so contract out this service to others. I can't recall who else was a provider, but I recall the list was fairly long.

I too have a new Monzo current account (not pre-pay, but a full service current account, I was one of the first 100) and this will shortly offer an overdraft. They have identified me by my passport and video. Starling do this too, which leads me to think the 'utility bill' method is neither compulsory nor a particularly 'digital age' way of verification. As has been highlighted above, the regulations do not specify how verification should be completed, and I suspect most financial providers are stuck in the past.

However, Monzo now provides another conundrum: They provide no statements, so how will I prove my expenditure in a year when my remortgage comes up?

SouthLondonUser

Ah, yes, this was one of my questions in another thread on the new challenger banks: do they provide paper statements on request? Even for a fee.