KYC with photo ID

[rizbit]

Ive signed up for a virtual office address in london.

all i get is a registered address to use as my business address, where i can receive physical mail.

now recently they introduced KYC (know your customer) verification.

We are required by law to collect and hold ID for all of our clients, and to keep this updated. We perform this task annually – we ask all clients to send us updated ID every April.
We will require: Photo ID; Proof of Address and a Selfie, holding one of the forms of ID

But isnt this a bit excessive, having to provide photo id, selfie especially every year.... I mean I would have thought credit card and proof of residencial address would have been enough.

So is it really a legal requirement for such companies

 

[Joyous]

I think you'll be hard pressed to find a registered office provider who doesn't ask for this.

 

[AlanJ1]

So is it really a legal requirement for such companies

Does it really matter?

If you want to use the services and they ask for it, you need to provide it?

 

[japancool]

But isnt this a bit excessive, having to provide photo id, selfie especially every year.... I mean I would have thought credit card and proof of residencial address would have been enough.

Without photo ID and a picture of you holding said ID, how do they know you're the person on the ID?

The credit card proves nothing except that the person submitting the credit card details knows them.

 

[rizbit]

but every year?

my concern is you send them these photos and ids and what they abuse them, sell them on black market etc

 

[AlanJ1]

my concern is you send them these photos and ids and what they abuse them, sell them on black market etc

You could literally say that about every company asking for ID.

If you don't like the policy, go somewhere else.

 

[fisicx]

Or you set up the account with your legit details and then sell it to a dodgy dealer.

You may be inconvenienced by the requirements but if you don’t want to comply you lose the service. It’s not too arduous to sent an email once a year.

 

[DontAsk]

I've never been asked for a selfie holding photo ID. That seems ridiculous. UK government certainly doesn't request such, although they may request certified versions of docum,ents.

It's probably over-interpretation (gold plating) of some simple KYC legislation.

 

[Newchodge]

I've never been asked for a selfie holding photo ID. That seems ridiculous. UK government certainly doesn't request such, although they may request certified versions of docum,ents.

It's probably over-interpretation (gold plating) of some simple KYC legislation.

I had to do something similar to set up my Starling account. It is becoming more common, and rightly so. Hopefully soon it weill be a requirement before registering a ltd company.

 

[MikeJ]

When dealing with a solicitor last year, I had to do a video call and be seen to be holding a bank statement up to the camera. I couldn't just email the bank statement.

Of course, all my statements are now digital, so I had to print it out and hold it up.

 

[FortisDPC]

Ive signed up for a virtual office address in london.

all i get is a registered address to use as my business address, where i can receive physical mail.

now recently they introduced KYC (know your customer) verification.



But isnt this a bit excessive, having to provide photo id, selfie especially every year.... I mean I would have thought credit card and proof of residencial address would have been enough.

So is it really a legal requirement for such companies

I would begin by asking them about which laws applies. KYC is mainly for anti fraud and anti money laundering.
Next, ask them how you should get the information to them. If they suggest that you do so via email then you are entitled to refuse as this is an unsafe method of sending personal data. Particularly a passport image which is particularly valuable.
I would then ask to see their data retention policy.
Any questions?
Howard

 

[David Griffiths]

The law relating to KYC for registered office addresses has changed relatively recently (with a general caveat that I'm finding that things that I thought were "relatively recent" were always longer ago than I think!)

I've seen a lot of requests for KYC information over the years, for myself and for clients. Some of it has seemed a bit overzealous but one thing that can be guaranteed is that arguing with the department issuing the request is a complete waste of time. They have their processes to follow, so it's their way or the highway.

 

[FortisDPC]

I think you'll be hard pressed to find a registered office provider who doesn't ask for this.

Mine didn’t. KYC is misunderstood. Clearly Joyous you have complied. How did you send the information? Via email?

 

[tony84]

I believe there is a legal requirement for the company to do those checks.
Have you had a look on google?

 

[DontAsk]

I believe there is a legal requirement for the company to do those checks.

Yes, but how they do the checks is open to some interpretation.

 

[DontAsk]

I had to do something similar to set up my Starling account. It is becoming more common, and rightly so. Hopefully soon it weill be a requirement before registering a ltd company.

When dealing with a solicitor last year, I had to do a video call and be seen to be holding a bank statement up to the camera. I couldn't just email the bank statement.

The world has gone mad.

Of course, all my statements are now digital, so I had to print it out and hold it up.

Some institutions specifically prohibit printouts from on-line banking. Some on-line statements are clearly labelled as such. I have had to request originals be mailed to me, to then send as ID. If theer's no indication then the only real difference is one is colour, one is B&W.

Like I said, madness!

 

[FortisDPC]

I had to do something similar to set up my Starling account. It is becoming more common, and rightly so. Hopefully soon it weill be a requirement before registering a ltd company.

Setting up a bank account is an entirely different situation. For registering a business I agree more checks are required but for a serviced office I am not so sure.
Proper guidance on how someone is identified and how the data is kept and for how long.

Yes, but how they do the checks is open to some interpretation.

if there is a specific law there won’t be any interpretation. When it comes to data transmission, collection and storage the GDPR applies and there is no interpretation there.

 

[Newchodge]

Setting up a bank account is an entirely different situation. For registering a business I agree more checks are required but for a serviced office I am not so sure.
Proper guidance on how someone is identified and how the data is kept and for how long.

if there is a specific law there won’t be any interpretation. When it comes to data transmission, collection and storage the GDPR applies and there is no interpretation there.

A serviced office has been used as the only known point of contact for a limited liability company. I cannot see anything wrong in proper idetification of the person using the service. AML probably requires it. Why do you think there is a problem?

 

[FortisDPC]

Setting up a bank account is an entirely different situation. For registering a business I agree more checks are required but for a serviced office I am not so sure.
Proper guidance on how someone is identified and how the data is kept and for how long.

if there is a specific law there won’t be any interpretation. When it comes to data transmission, collection and storage the GDPR applies and there is no interpretation there.

 

[japancool]

Well then, let's assume for the moment that they are indeed compliant in all of those areas.

Then there's no problem, correct? Regardless of how often they request the information.

 

[numbersrule]

Refer to Section C at the link below.

Trust and Company Service Providers must carry out Robust KYC.

HMRC Money Laundering Guidance | Skillcast

When money laundering is in the spotlight, everyone assumes a bank or a cash business is involved. But the FCA has highlighted a number of industries at risk.

www.skillcast.com

 

[WaveJumper]

I think as already mentioned if you don't like the terms go else where. However if the boot was on the other foot and you was offering the services wouldn't you want to know who you was dealing with and "fronting up" I think I would.

Unfortunately the world is full or rouge companies, again as mentioned this type of verification is becoming common place certainly in my game for some unknown reason people want to know who's moving large sums of money around, can't think why

 

[ctrlbrk]

But isnt this a bit excessive, having to provide photo id, selfie especially every year.

Not all virtual office address providers ask for recurring verification.

 

[Tornado220]

I would begin by asking them about which laws applies. KYC is mainly for anti fraud and anti money laundering.
Next, ask them how you should get the information to them. If they suggest that you do so via email then you are entitled to refuse as this is an unsafe method of sending personal data. Particularly a passport image which is particularly valuable.
I would then ask to see their data retention policy.
Any questions?
Howard

Also how they destroy your data ?

 

[Ozzy]

Speaking as someone who campaigned for these increased checks, especially around Companies House too, I am reassured and pleased to see a TCSP applying these checks.

The law that these providers must comply with state that the provider must do everything they must to satisfy themselves they accurately know the true identity of their customer. So whatever ID they ask for is what they have chosen to satisfy themselves they can accurate identify you.
As already said above, if you disagree with their approach then find someone else. They won’t change their policy because they will have regular checks done in them by HMRC/Police and if those checks feel they aren’t complying then they can potentially be sent to prison.

Next, I’d like to see stricter penalties for nominee/shadow directors and shareholders.

 

[Tornado220]

Speaking as someone who campaigned for these increased checks, especially around Companies House too, I am reassured and pleased to see a TCSP applying these checks.

The law that these providers must comply with state that the provider must do everything they must to satisfy themselves they accurately know the true identity of their customer. So whatever ID they ask for is what they have chosen to satisfy themselves they can accurate identify you.
As already said above, if you disagree with their approach then find someone else. They won’t change their policy because they will have regular checks done in them by HMRC/Police and if those checks feel they aren’t complying then they can potentially be sent to prison.

Next, I’d like to see stricter penalties for nominee/shadow directors and shareholders.

But is that the problem or the solution ?

 

[fisicx]

Also how they destroy your data ?

They won’t. They would have to keep the data for a number of years.

 

[Tornado220]

They won’t. They would have to keep the data for a number of years.

so what happens after this "number of years" ?

 

[fisicx]

so what happens after this "number of years" ?

No idea. Each company will have their own policies. They aren’t obliged to tell you what those policies are.