Why do we ask our clients to prove who they are?

Government regulations require financial and professional businesses, such as solicitors’ firms, to verify the identity of their clients. These compulsory checks aim to prevent money laundering and fraud.

The consequences of fraud can be very serious. In a recent case, a man’s house in Wales was sold without his knowledge while he was working away. Neighbours called to say that there was someone in the house and building work was underway. The owner returned to find all his possessions gone and someone else living in the house. When the original owner consulted Land Registry, he discovered that he was no longer the registered owner.

The fraudsters had used fake documents in order to impersonate the owner and succeeded in selling his property without his knowledge.

The careful verification of the identity of our clients is necessary to protect against fraud and money laundering. Being asked for identification does not mean that you are under suspicion. The regulations are there to protect all our clients and make it harder for criminals to commit financial crimes, which can have devastating consequences.

The contents of this article do not constitute legal advice and are provided for general information purposes only.