What is this?
The AML/CFT Supervisors have released some new guidance on the use of expired passports as part of customer due diligence (CDD) verification. According to the supervisors, and all of you that we have talked to, this is a confusing issue. You’ll be as glad as we are that there is now some clarification on this area.
What have they said?
We will let you read it all in detail here but in short this is what you need to know:
- You may accept a passport that has expired as an identity verification means if it is not in the normal course of your business. In other words, it can be an exception to your policy, if your client has no other proof, within reasonable means;
- There is no time frame of when a passport is too far expired;
- If you allow an expired passport as a form of identity verification this must be done with a risk-based approach in mind; and
- The reporting entity must still be satisfied that the form of identification is reliable and accurate.
What to do?
- Read through the document and decide if you wish to implement this not in usual business policy;
- If so; add this into your AML/CFT Programme; and
- Train staff effectively.