The Problem

Banks are increasingly asked to open accounts on behalf of customers who do not present themselves for personal interview. This has always been a need in the event of non-resident customers, but it has increased significantly with the recent advent of postal, telephone and electronic banking.

Acts meant to curb money laundering and terrorism as well as supervision acts such as the "Basel Committee of Banking Supervison (BCBS)" in Europe oblige customers to use all possible means to identify a person or company for any business transaction.

The BCBS states: "Some identification documents are more vulnerable to fraud than others. For those that are most susceptible to fraud, or where there is uncertainty concerning the validity of the document(s) presented, the bank should verify the information provided by the customer through additional inquiries or other sources of information."

The Solution

Documents such as utility bills or letters from a public authority, which can provide evidence that a person resides at a certain address, can also easily be faked. Dipping into independent databases, such as up-to-date LSSi telephone directory content, provides a further cross-check of both name and address. In addition it is possible to verify whether the landline telephone number matches before placing a confirmation call.

Why LSSi?

Integrating an LSSi solution for identity verification into the IT environment of banks, insurance agencies and other financial institutions allows them to automatically conduct background identity checks and furnishes them with the necessary documentation as proof that due dilligence has been peformed.