The Money Laundering Regulations 1993

Payment by post etc.

8.—(1) Where satisfactory evidence of the identity of an applicant for business would, apart from this paragraph, be required under identification procedures in accordance with regulation 7 above but—

(a) the circumstances are such that a payment is to be made by the applicant for business; and

(b) it is reasonable in all the circumstances—

(i) for the payment to be sent by post or by any electronic means which is effective to transfer funds; or

(ii) for the details of the payment to be sent by post, to be given on the telephone or to be given by any other electronic means;

then, subject to paragraph (2) below, the fact that the payment is debited from an account held in the applicant’s name at an institution mentioned in paragraph (4) below (whether the account is held by the applicant alone or jointly with one or more other persons) shall be capable of constituting the required evidence of identity.

(2) Paragraph (1) above shall not have effect to the extent that—

(a) the circumstances of the payment fall within Case 2; or

(b) the payment is made by any person for the purpose of opening a relevant account with an institution falling within paragraph (4)(a) or (b) below.

(3) For the purposes of paragraph (1)(b) above, it shall be immaterial whether the payment or its details are sent or given to a person who is bound by regulation 5(1) above or to some other person acting on his behalf.

(4) The institutions referred to in paragraph (1) above are—

(a) an institution which is for the time being authorised by the Bank of England under the Banking Act 1987(1) or by the Building Societies Commission under the Building Societies Act 1986(2);

(b) a European authorised institution within the meaning of the Banking Coordination (Second Council Directive) Regulations 1992(3); or

(c) any other institution which is an authorised credit institution.

(5) For the purposes of this regulation—

“authorised credit institution” means a credit institution, as defined in Article 1 of the First Council Directive on the coordination of laws, regulations and administrative provisions relating to the taking up and pursuit of the business of credit institutions (77/780/EEC)(4), which is authorised to carry on the business of a credit institution by a competent authority of a member state; and

“relevant account” means an account from which a payment may be made by any means to a person other than the applicant for business, whether such a payment—

(a)

may be made directly to such a person from the account by or on behalf of the applicant for business; or

(b)

may be made to such a person indirectly as a result of—

(i)

a direct transfer of funds from an account from which no such direct payment may be made to another account, or

(ii)

a change in any of the characteristics of the account.

(1)

1987 c. 22.

(2)

1986 c. 53.

(3)

S.I. 1992/3218.

(4)

OJ No. L322, 17.12.77, p.30, as amended by Council Directive No. 86/524/EEC (OJ No. L309, 4.11.86, p.15) and by Council Directive No. 89/646/EEC (OJ No. L386, 30.12.89, p.1.).