NEWS...
OFT Launches Anti-Money Laundering ID Check
Debt purchasers could be forced to check the identity of debtors under new anti-money laundering regulations.
However, buyers say establishing the identity for all their accounts is not always feasible. The CSA is currently lobbying for buyers to be allowed to rely on checks made by lenders when the credit was originally issued.
An OFT spokesperson added: "We recognise that debt purchase companies have a particular problem. It is not tenable for them t carry out the same identity checks. We are aware of this as a problem of interpretation and working with the industry on it."
The OFT's AML registration is quite straightforward and self-financing for them, by requiring CCFIs to pay £115 per office location up to a maximum of 20 sites. In essence, debt purchasers are giving the OFT the contact details of their company, the different offices and the money laundering reporting officer, who personally faces a fine and a prison sentence if they fail to report any suspicious AML activity to the SOCA under the AML 2007 Act.
The primary focus for the FT is registering the consumer credit financial institutions and estate agents that it must supervise in this area.
Firms, including debt buyers, have until the end of January to register with the OFT but are encouraged t get their applications in by the end of November.
For further information, simply visit www.oft.gov.uk/advice_and_resources/resource_base/legal
Original articles courtesy of Credit Today and CCR.
