Identifying clients is fundamental to legal practice these days. Money Laundering Regs 2007 make this clear.

For conveyancers, there are the additional burdens set out in CML Handbook at 3A3.3:

• Unless you personally know the signatory of a document, you must ask the signatory to provide evidence of identity, which you must carefully check. You should check the signatory’s identity against one of the documents from list A or two of the documents in list B:

List A

• a valid full passport; or
• valid HM Forces identity card with the signatory’s photograph; or
• a valid UK photo-card driving licence; or
• any other document listed in the additional list A in part 2.

List B

• a cheque guarantee card, credit card (bearing the Mastercard or Visa logo) American Express or Diners Club card, debit or multi-function card (bearing the Switch or Delta logo) issued in the United Kingdom with an original account statement less than three months old; or
• a firearm and shot gun certificate; or
• a receipted utility bill less than three months old; or
• a council tax bill less than three months old; or
• a council rent book showing the rent paid for the last three months; or
• a mortgage statement from another lender for the mortgage accounting year just ended; or
• any other document listed in the additional list B in part 2.

You should check that any document you use to verify a signatory’s identity appears to be authentic and current, signed in the relevant place. You should take a copy of it and keep the copy on your file. You should also check that the signatory’s signature on any document being used to verify identity matches the signatory’s signature on the document you require the signatory to sign and that the address shown on any document used to verify identity is that of the signatory.

If you do not take these steps you may find yourself innocently involved in mortgage fraud, and liable (through your insurers) for some of the losses. © Practical Lawyer