SmartSearch has called on UK firms to scrap manual ID checks after the anti-money laundering (AML) specialist announced the launch of a new campaign to raise awareness about outdated methods of identity verification for regulated businesses.

The campaign is part of the SmartSearch Index Report which has been published to highlight the ongoing threat of money laundering in the UK.

New research from SmartSearch, conducted among 500 regulated businesses in the UK during June, found that more than a third (34%) still make manual checks when onboarding new customers.

The findings highlighted that in the legal sector, manual methods of verification are still preferred by 42% of the firms surveyed, while a third (33%) of financial services, banks and estate agents confirmed they relied on manual checks.

SmartSearch also revealed that 10% of all firms in its survey said they carry out no checks on business customers, with only 70% indicating they check financial records as part of the business customer onboarding process – which dropped to 60% in the legal sector.

SmartSearch CEO, John Dobson, commented: “It’s really important for regulated businesses to realise that when it comes to secure methods of customer ID verification, documents are high risk and should be at least supplemented with reliable low risk electronic verification.

“This is not only because of the increase in money laundering and financial crime we’ve seen since the start of the pandemic, but also the increasing cost of manually complying with regulations.

“Businesses need to make due diligence and Know Your Customer (KYC) obligations more efficient in terms of speed and cost, as well as remaining secure and accurate. That is not possible by relying on checking passports, driving licences and council tax bills.”

Share Story: