Additional anti money laundering (AML) checks

Published  30 June 2021
   5 min read

We’ve added some additional checks to further tighten our money laundering controls. These may impact your customers' plans, new applications or claim.

For new applications we need to verify that the name of the person or company paying for a new protection application matches the bank details provided.

These details will be verified again at claim stage.

We’ll do this electronically and, if the verification fails, we’ll ask your client for more evidence. If we don’t receive a response after 4 weeks, we’ll contact you to ask for help.

To allow us to verify that the bank account details match those of the person paying for the plan, or the recipient of the claim, you can use one of the following documents:

  • A bank statement (most popular):
    • This can be downloaded using online banking
    • It needs to be a copy statement, rather than a list of transactions, including name, account number and sort code
    • It needs to be dated within the last 3 months; OR
  • A copy of a bank account passbook; OR
  • A crossed-out cheque; OR
  • A blank paying-in slip.

These documents must relate to the account being used to pay from or receive to. They can be sent to us securely by replying to the email that we sent asking for the information and attaching the document (preferred option). To do this we need you to save the attachment as a PDF:

  • If you’ve downloaded a bank statement from online banking this will likely be in PDF format already.
  • For the other forms of ID, you can take a picture but please remember to save the picture as a PDF. Instructions for how to do this are available if you type ‘convert an image to PDF’ into a search engine.

Alternatively, the document(s) can be posted to the address below making sure that the plan number is referenced on any correspondence. 

We don’t need you to send us your original documents. We would prefer you to send photocopies instead.

However, we do need a person in a position of responsibility to sign and certify any photocopies. Examples of people in a position of responsibility are:

  • a financial adviser
  • your employer
  • bank officials
  • doctors
  • solicitors
  • teachers
  • police officers.

Please note – older bank accounts may not have their data stored in the CATO database which holds bank account information. Unfortunately, any accounts which fall into this category will always fail the enhanced electronic bank account check so we’ll request documentary evidence for these accounts.

AML checks

When we need to carry out AML checks for individuals, we’ll aim to do this electronically. However, if:

  • the electronic check fails,
  • an individual opts out of us completing an electronic check, or
  • they live outside the UK  

we’ll request additional proof of identity.

It’s important to note that the reality of meeting our regulatory requirements means we’re likely to be asking for additional evidence on a regular basis.

For third party claim recipients, nominated beneficiaries or beneficial owners not named on our records, including solicitors and funeral directors, we’ll also carry out real time screenings.

What happens if we don’t receive the required evidence?

The plan will still go in force but it's really important that we receive the evidence to fulfil anti money laundering requirements that are in place to keep your client's identity safe.

For claims, we'll be unable to make any claim payments until all anti money laundering requirements have been fulfilled.