A statutory instrument published in the Official Gazette on 30
August 2019 – the Credit Reporting Act 2013 (Section 20)
(Verification of Identity of Credit Information Subjects)
(Amendment) Regulations 2019 (S.I. 433/2019) - has simplified the identity
verification process for lenders subject to the credit reporting
regime.
Lenders and other “credit information providers”
(“CIPs”) subject to the Credit Reporting Act 2013 are required to
verify the identity of borrowers and other credit information
subjects (“CISs”). The verification
steps that CIPs are required to take are set out in S.I. 488/2016 (the “Section 20
Regulations”). The new S.I. amends the Section 20
regulations.
The amendments seek to avoid duplication of verification processes
already undertaken by CIPs in relation to anti-money laundering
legislation or similar. Specifically, a CIP is no longer required
to meet the verification requirements set out in Parts 1, 2 or 3 of
the Section 20 Regulations if either:
- the Criminal Justice (Money Laundering and Terrorist Financing) Act 2010 applies to it and it has verified the identity of the CIS pursuant to the requirements of that Act; or
- the CIP has complied with “…any other reasonable and reliable process to verify the identity of the credit information subject”. The CIP is required to record the process followed, including an explanation of the circumstances, and is required to keep verification documents for a 5-year period.
CIPs may continue to use the verification requirements set out in the Section 20 Regulations. These requirements are amended so that the CIP may use copies of verification documents rather than originals.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.