Date:  3 October 2008

IDENTIFICATION/ FRAUD AND MONEY LAUNDERING PRECAUTIONS - FOREWARNED IS FOREARMED

Client identification

As a result of recent changes imposed by the Solicitors Regulation Authority and also latterly by the Land Registry, procedures for proof of identity and avoidance of fraud and money laundering are more rigorous than ever.

In particular please note that even though you may be a long established client of the firm, if we have not acted for you in the last three years, then we will have to check your identity and current address as if you are a new client coming to us for the first time.

You can of course rely on us to ask you what we need to know, but please be aware that your transaction cannot be progressed until these initial formalities have been dealt with. The regulations make it clear that we must do this “before the establishment of a business relationship or the carrying out of an occasional transaction”.

We would generally need to see original documentation, not photocopies.

If you are a Company client, then we will need to establish not only identification through Companies House, but also personal identification for all shareholders each holding more than 25% of the shares, and for those directors and the company secretary who will execute documents on the Company’s behalf.

It is worth remembering that if you are both a sole director and the company secretary  then your execution for the Company will need to be witnessed by a third party.

We are also required now to check whether you may be what is called a “politically exposed person” .The European Community is exempt but otherwise if anywhere else in the World you are a head of state, member of government, the judiciary or high ranking member of the armed forces, or indeed if you are an immediate family member of such a person then this needs to be established.

As you will appreciate these are requirements imposed upon our profession and we must comply. Please help us to minimise any delay or inconvenience to your transaction by dealing with our enquiries promptly.

Land Registry

As from the 10th November 2008 the Land Registry are revising their forms so that when  applying to register a purchase, new lease or mortgage,  and the seller or other party has not been separately legally represented then your solicitor will need to send with the application proof of identity for that unrepresented party. Failure to do so will result in the application being rejected until the proof is given.

This will not apply where the value of the land in the transaction is less than £5000.00.

Clive Vernon