Distance Communication

• Phone
• Post
• Fax
• E-mail
• Internet

Do not assume that everyone who sells insurance/banking products by telephone or electronic means is covered by the directive.

When communicating by email, firms should make sure they have a process in place that will ensure all relevant documentation is provided to/received from clients/prospective clients, with appropriate sign-off. This may include where forms are signed electronically. If possible, forms should be printed off and signed by the client/prospective client, scanned and returned by email. If the client/prospective client does not possess a printer/scanner the broker may need to verify from the
insurer/lender if they will accept electronic signature. In these situations, firms should seek additional sources of client/prospective client ID verification.

Mortgage, investment and life brokers should be familiar with the requirement set down in the Criminal Justice (Money Laundering and Terrorist Financing) Act in relation to non-face-to-face transactions. The extent of the customer due diligence in respect of non-face-to-face client/prospective clients will depend on the type of product or service requested and the assessed money laundering risk presented by the customer. Where the client/prospective client is not physically present (eg. by post, telephone or over the internet) for identification purposes, additional measures should be undertaken to establish the client’s/prospective client’s identity. Examples of additional measures include:

- Telephone contact with the client/prospective client prior to the commencement of the business relationship on a home or business number which has been verified (electronically or otherwise) or a welcome call to the client/prospective client before the business relationship starts, using it to verify additional aspects of personal identity information that have been previously provided during the setting up of the account;

- Communicating with the client/prospective client at an address that has been verified (such verification may take the form of a direct mailing of bank account documentation to the client/prospective client which, in full or in part, may be required to be returned, completed or acknowledged without alteration);

- Verify information on documents received, e.g. in relation to a utility bill forwarded; cross check against a bank statement narrative relating to entries from the utility bill provided or cross check salary details appearing on a recent bank or building society statement verifying the individual‘s employer as previously notified.