Identity verification guide

Many online companies perform identity verification to protect themselves and their customers from fraud, identity theft, and other malicious activities. Identity verification is the process of confirming the identity of an individual or entity by verifying the information provided, such as name, address, date of birth, and government-issued identification documents.

Online companies often store the sensitive personal and financial information of their customers, which makes them a target for cybercriminals. Performing identity verification helps to prevent unauthorised access to this information and reduces the risk of fraud and financial losses.

Additionally, identity verification is often required by law or industry regulations to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. These laws require businesses to verify the identity of their customers to prevent money laundering and terrorist financing.

In addition we will be sending our successful clients large sums of money. It is important to have the due diligence in place to ensure that our banking relationships are not compromised. 

What is valid proof of identity: 

A valid proof of identity is a document or set of documents that verifies your personal information, including your full name, date of birth, and photograph. The specific requirements can vary depending on the country or institution’s requirements, but here are some commonly accepted forms of identification:

Passport: A valid passport is universally accepted as a proof of identity. It contains your name, photograph, nationality, and date of birth.

Driver’s License: In many countries, a driver’s license is a commonly accepted form of ID, as it contains a photograph, full name, address, and sometimes date of birth.

National Identity Card: Some countries issue national identity cards to their citizens, which can serve as a valid form of ID.

Birth Certificate: While this document does not contain a photo, it is often used in conjunction with other forms of ID to prove identity, as it contains your full name and date of birth.

Social Security Card or National Insurance Card: These documents are used in some countries and can be used as part of an ID check, often alongside other forms of ID.

Residential Permits or Visas: For non-citizens, these documents are often accepted as they contain a photograph, name, and other identifying information.

Remember that the requirements may vary, and it’s always a good idea to check with the company you’re providing identification to, as they’ll provide you with a list of their acceptable forms of identification.

What is a proof of address: 

Proof of address is usually a document that shows your current residential address. This document should ideally be issued by a reputable organization and be relatively recent, as many companies won’t accept proof of address that’s several months old. Here are some common types of documents that are often accepted as proof of address:

Utility Bills: This can include bills for electricity, water, gas, or even internet and cable TV. These are usually accepted if they are recent (typically within the last 3 months).

Bank Statements: A statement from your bank showing your address can be used as proof of address. Credit card statements can also sometimes be used for this purpose.

Lease Agreement: If you’re renting your home, your lease agreement usually shows your address and can be used as proof.

Mortgage Statement: If you own your home, a mortgage statement can serve as proof of address.

Driver’s License: In some jurisdictions, your driver’s license can serve as proof of address if it has your current residential address on it.

Insurance Documents: Statements from your home or auto insurer that show your address can also be used.

Government-Issued Letters or Documents: Letters or documents from a government agency (local, state, or federal), such as a social security statement, tax return document, vehicle registration, or a letter from a government agency, can also serve as proof of address.

Again, the specific requirements can vary depending on the company, so it’s always best to check with them to see what they accept as valid proof of address.

What we check for: 

Sanctions, adverse media, and political exposure – are common components of the due diligence process that financial institutions, businesses, and other organizations undertake to assess risk related to clients, partners, or other business relationships. Here’s what each of those checks involves:

Sanctions Checks: These involve verifying whether an individual or entity is on a sanctions list. Sanctions lists are created by national governments, international organizations like the United Nations, and other bodies, and include individuals, entities, or countries that are subject to economic or political sanctions. Being on a sanctions list can indicate involvement in activities like terrorism, organized crime, human rights abuses, and so on.

Adverse Media Checks: Also known as negative news checks, these involve searching media sources for negative reports about an individual or entity. This could involve criminal activity, financial misconduct, regulatory breaches, or other types of potentially risky behavior. The purpose of these checks is to identify any potential reputational risk associated with the individual or entity.

Political Exposure Checks: These checks are designed to identify whether an individual is a Politically Exposed Person (PEP). A PEP is someone who holds a prominent public role or has a close relationship with someone who does. This could be a senior government official, a senior executive at a state-owned corporation, a high-ranking military officer, a member of a royal family, and so on, as well as their family members and close associates. PEPs are considered to be at a higher risk for involvement in bribery and corruption due to their potential influence.

These checks are part of a broader Know Your Customer (KYC) and Anti-Money Laundering (AML) framework that organizations use to verify the identity of their clients and assess potential risk. The goal is to prevent the organization from being used for money laundering, terrorism financing, or other illegal activities, as well as to manage reputational risk.

If you are not able to obtain any of these documents please contact us for assistance. We can instruct you on a Proof of Residency Letter (Affidavit of Residence).

When does a trader need to verify their identity?

In general, identity verification for a trader is typically required at the outset of a new relationship  such as when passing a trading challenge. This is an important part of the Know Your Customer (KYC) process that companies use to verify the identity of their customers and assess potential risks of illegal intentions towards the business relationship.

After the initial verification, additional checks might be required in certain circumstances, such as:

Updating Expired Documents: If the documents used for the initial verification have expired, the trader will need to provide updated documents to verify their identity again.

Changes in Personal Information: If a trader changes significant personal information, such as their name or address, the company may require them to verify their identity again.

Security Concerns: If there are concerns about the security of the account, such as suspicious activity or a data breach, the company may require additional verification.

In general, traders should be prepared to verify their identity whenever requested to ensure the security of their account and comply with requirements.

Documents in a Foreign Language

If you’re using documents in a language other than English for verification purposes, you’ll be relieved to know that SumSub has got you covered. SumSub has been designed with the capability to process documents in a multitude of languages across the globe, ensuring a seamless and inclusive user experience.

This means you typically won’t have to concern yourself with the inconvenience of translating your documents. Whether your documents are in Spanish, Chinese, Arabic, or any other language, SumSub’s advanced technology is equipped to accurately translate and analyze the information provided.

It’s part of SumSub’s commitment to make identity verification accessible, straightforward, and hassle-free for users worldwide. Please note, in some rare instances, if a document language is not supported or legibility issues arise, additional steps might be required, but this is not commonly the case.

What to expect when using SumSub for identity verification:

SumSub is a service that provides identity verification, anti-fraud, and compliance solutions for businesses. While the specifics of the process may vary depending on the requirements of the business using SumSub’s services, the general process typically follows these steps:

Request for Information: The user is asked to provide personal information. This might include full name, address, date of birth, and other details depending on the level of verification required.

Document Submission: The user is asked to submit proof of identity and sometimes proof of address. This could involve taking a photo or uploading a scanned copy of a document such as a passport, driver’s license, or utility bill.

Liveness Check or Selfie Verification: To ensure the person providing the information is the actual owner of the ID documents, SumSub may ask the user to take a live selfie or perform some other form of biometric verification. This can help detect and prevent fraud.

Verification Process: SumSub then uses its software to verify the documents and the information provided. This process involves comparing the data to ensure they match, verifying the authenticity of the documents, and checking that the person matches the photo in the ID document.

Additional Checks: Depending on the service, SumSub might also perform other checks, such as checking whether the person is on any sanctions lists or has been involved in financial crimes.

Results Report: Once the verification process is complete, SumSub reports the results back to the business. If the verification is successful, the user can then proceed to use the service. If not, the business will be alerted to the issues detected during the verification process.

The whole process is designed to be quick and user-friendly, often taking only a few minutes, although the time for the business to receive the results may vary. It’s important to note that SumSub complies with data protection regulations to ensure user information is kept secure throughout this process.