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ID verification / money laundering checks driving me up the wall!

12 replies

aguhiyori · 21/08/2021 20:04

FTB here. Currently at end of tether and need to vent!

Had an offer accepted on a house this week (hurrah!) and both estate agents and solicitors now want to carry out ID and money laundering checks. So far, so normal, right?

But now everything for these checks is outsourced and has to be done using an app, apparently. Solicitors and estate agents each use different apps with different requirements. This is making the whole thing about 100 times more complicated than it needs to be.

Problem no. 1 - DP is paranoid about security/privacy and so doesn't have a smartphone. This does not compute with our solicitors who insist we both have to go via the app. They've suggested that we both use the app on my smartphone, but the login ID is somehow tied to the phone itself and so that's a non-starter as we can't create two different user accounts on the app even if we uninstall and reinstall it. (Thankfully estate agents' app DID allow two separate accounts on the same phone, so that's that one dealt with, at least.)

Problem no. 2 - smartphone app for money laundering checks requires me to connect to online banking to verify existence of funds. But some funds are coming from DP's account (which I don't have access to on my phone) and others are coming from my savings account whose existence the app simply fails to recognise even though it's with a major high street bank...

Probs 1 and 2 could be sorted easily if we just presented paper documents - all of which we have - but solicitors don't seem to want to let us do that even though we live within walking distance to their offices! Argh!

Problem no. 3 - estate agent won't accept the same documents as proof of address as our solicitors. e.g. tax coding notice is accepted by our solicitors and our lenders, but estate agent says that their compliance department won't accept it?! We've pointed this out to them but we just get "computer says no". (We can produce other proofs but it's the principle of the thing!)

Add to that the fact that the EA won't officially take the house of the market until our solicitors have completed their own ID & money laundering checks and my stress levels are at an all time high. Would be inclined to find alternative solicitors if it weren't for the fact that (a) these ones do seem to be highly regarded locally even though they're making it bloody difficult to instruct them and (b) switching would introduce yet another delay to the process!

Why does the EA need to do these checks anyway? They're not handling any of the monies for the transaction and I thought that's what the solicitors were for... everyone I've spoken to (including those who've bought recently) said it wasn't this complicated for them. They had to produce ID & proof of funds to the EA but it was a cursory check and not dependent on what the solicitors did.

Anyone else had anything similar?

OP posts:
BadgertheBodger · 21/08/2021 20:09

EA is legally required to check your ID and proof of funds. However, nobody can insist you have to use a stupid app which doesn’t work properly for your situation. How do you think they manage with 83 year old Muriel who’s selling a flat to go into a home? Just turn up at the office with ID and bank statements, there’s absolutely no reason they can’t do a physical document check.

For EA you need photo ID and proof of address. The easiest things for this are passport and driving licence, or council tax bill.

Svalberg · 21/08/2021 20:09

I've had to prove my identity 5 times in the last 5 months, and as we do everything online, it's been problematical. For one lot I ended up having to drop scans of documents through their office letterbox. You'd think that they would have got round online utility bills by now, but oh no

Clydie89 · 21/08/2021 20:10

I bought and sold recently. No checks by the lender as existing banking customer and EA/solicitor were the same firm. I just took our passports/driving licences into their office to be copied and forwarded them some online banking statements /utility bills. Didn't have to do anything for the other sides EA.

They must have a way of going round the app, what if they were dealing with someone with a disability or in their 80s etc??

Svalberg · 21/08/2021 20:10

Bills were only accepted if they were less than 3 months old too, which fucks the council tax bill for 9 months of the year

aguhiyori · 21/08/2021 20:12

Another frustration is the arbitrary rules around age of documents acceptable for proof of address - utility bills, council tax bills and so on. I only get a water bill once a year, and council tax letters come once or twice a year whenever our local council feels like it (I've been back through the last 3 years' worth and there's literally no pattern to them at all...). So at the moment those are both too old for our solicitors to accept (but, bizarrely, not the estate agent...).

Obviously I appreciate the proof of address needs to be reasonably current so that they can be confident that you're still living there, but the total inconsistency of rules between different organisations involved in the process is utterly maddening!

OP posts:
BadgertheBodger · 21/08/2021 20:12

Council tax bill is fine as it’s a yearly bill, it’s utilities which need to be less than 3 months old

aguhiyori · 21/08/2021 20:15

@BadgertheBodger

EA is legally required to check your ID and proof of funds. However, nobody can insist you have to use a stupid app which doesn’t work properly for your situation. How do you think they manage with 83 year old Muriel who’s selling a flat to go into a home? Just turn up at the office with ID and bank statements, there’s absolutely no reason they can’t do a physical document check.

For EA you need photo ID and proof of address. The easiest things for this are passport and driving licence, or council tax bill.

@BadgertheBodger exactly what we're wondering - what if they're dealing with someone elderly, or even just visually impaired who can't use an app? It's a prime example of technology being used for its own sake and actually making things far more complex than needed. And I work in a hi-tech industry!

We've got all the necessary documents to prove ID and address any one of a whole number of different ways, it's the total lack of consistency and arbitrariness of it all that just compounds the problems already created by the insistence on apps. Infuriating!

OP posts:
BadgertheBodger · 21/08/2021 20:18

Trust me, if they were dealing with someone elderly this ridiculous hoop jumping would fly out the window and they’d be ringing the compliance department asking was a bus pass and a savings book acceptable. Maybe ask to speak to someone more senior? If the negotiators are young/inexperienced and have had the fear of god put into them about AML fines they might have lost all ability to be sensible.

Svalberg · 21/08/2021 20:47

@BadgertheBodger

Council tax bill is fine as it’s a yearly bill, it’s utilities which need to be less than 3 months old
It was specifically said that all bills had to be less than 3 months old, including the council tax one - I queried it. Luckily, we had letter regarding an interest rate change from the mortgage people soon afterwards.
whojamaflip · 21/08/2021 20:56

We had this recently (well 9 months ago and still not exchanged!!)

4 equal share owners, 3 of which are in their 80s, none of which have smart phones and all who were CEV so self isolating!!

Our solicitors eventually accepted me taking photos of them holding their photo ids and then I physically took their ids and utility bills up to the solicitors office. They cross referenced the photos with the ids and were happy.

However they have dealt with this particular solicitors practice for the last 50 odd years so were known to them.

maofteens · 22/08/2021 01:11

I've just been through three ID checks. Even my solicitors, who I have been using for the last ten years and have done about six sales/purchases through have to do the checks if it's been more than three months. So I send them the same passport scan and whatever official thing with my address - HMRC is a good one as they still seem to insist on regular mailed reminders. Only one estate agent asked me to use an app, which required a selfie too. It was a faff but not that difficult.

Lonecatwithkitten · 22/08/2021 06:19

Just been through this agent had meet us at viewings so just took copies of documents and I took a screen shot for proof of funds. Solicitor took scanned copies then zoom call with us holding up documents to the camera. Accepted council tax as once yearly bill, also took driving licence as proof of address and passport as proof of identity.

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