New proof of identity requirements when instructing all solicitors
Money Laundering Regulations 2007
Since 2003 solicitors, like many other advisers, have been required by the Money Laundering Regulations 2003 to obtain proof of identity of clients or potential clients at the start of an instruction. You will probably be used to being asked for proof of identification from accountants or banks as well as from solicitors.
On 15 December 2007 new regulations come into effect which require a change to our procedures. We will have to carry out “Customer Due Diligence” before we can agree to act for you. This means that we will need to obtain proof of identity and check that identity before we agree to act for you. For most people, that will mean that we will need you to bring proof of identity (such as a current passport or photographic driving licence) and proof of address (in the form of a recent Council Tax bill and recent utility bill or bank statement) to our initial meeting.
One of the changes requires us to identify “beneficial owners” and “controllers”.
For a Limited Company we will need:-
- Proof of identification of at least 2 directors: and
- A list of the names and addresses of all shareholders, as well as confirmation of their voting rights.
For a partnership we will need:-
- A list of all partners; and
- Proof of identity for at least 2 of the partners; and
- A copy of the current partnership deed or some other partnership document that confirms who owns the equity and the voting rights of the partners
For a trust we will need:-
- A list of all of the trustees;
- A copy of the document establishing the trust and appointing the current trustees: and
- A list of the beneficiaries of the trust (names, ages and addresses) with confirmation of their share of the equity
We may require you to provide further information and proof of identity of shareholders, partners or beneficiaries depending on the circumstances. These changes will apply to some existing clients as well as new clients.
To minimise any delay caused by the need to obtain “customer due diligence” please let us have the relevant documents as soon as possible. Unfortunately, we unable to accept instructions until we have obtained all of the necessary “customer due diligence”.
