Paradigm Mortgage Services has announced a new range of anti-money laundering (AML) and fraud prevention tools for member firms, following the launch of its new strategic partnership with credit reference agency, Experian.

The agreement will provide Paradigm members access to Experian’s AML ID&V checks service tool, Credit Bureau Data, as well as Onfido’s Digital Document Verification products – all designed to simplify the mortgage application process and help firms combat potential fraud.

The announcement comes after the Government introduced the Fifth EU Money Laundering Directive into UK law on 20 December 2019, adding new inclusions to the previous Directive in place. The new Directive will come into force on 10 January 2020.

“One of these inclusions is new wording which states, wherever possible, businesses must use electronic verification for their AML checks rather than just looking at paper documents such as passports and driving licences,” Paradigm mortgage technical director, Christine Newell, commented.

“It is worth noting that there have been no recorded incidents of money laundering being committed where electronic verification has been used in a firm's AML process.”

Paradigm suggested its members will not need to purchase a license to use the AML tool, but will only be charged a transactional price. Onfido's Digital Document Verification tool will also be available at a reduced cost.

The tools will allow advisers to run digital checks that pass AML regulations – allowing clients to confirm their identities online without the need for paper forms or the expense of couriering identity documentation.

Furthermore, Paradigm’s Credit Bureau Data tool will provide advisers access to their clients’ credit information for the first time in the UK.

Newell added: “This new strategic partnership we have secured with Experian – the UK’s leading credit reference agency – not only allows Paradigm member firms to ensure they are meeting their AML responsibilities under the new Directive, but provides access to comprehensive electronic verification tools at very attractive terms.

“It ensures advisers are putting in place even firmer foundations in order to combat potential mortgage fraud, and to ensure they keep their clients and their businesses safe.”

Share Story: