A quarter of buyers not asked to prove identity - claim

Almost a quarter of buyers have claimed they were not asked to verify their identity when purchasing a property, a survey suggests.

A survey by anti-money laundering (AML) Credas Technologies asked 1,200 homebuyers if the selling agent ask for proof of identity, such as, but not limited to, a passport or driving licence.

The majority or 77% said they were asked to provide an ID document but 23% said no verification was requested.

When asked the same for their current address, 30% stated they provided no proof, for example, in the form of a utility bill or similar.

Another 13% said they weren’t asked to verify their identity by their lawyer or solicitor once the sale had started to progress and 18% also said that when starting out, their mortgage broker also failed to verify their identity properly. 

Tim Barnett, chief executive of Credas Technologies, said: “For the vast majority of those operating within the property industry, failing to verify the identity of a potential buyer may sound unbelievable. Not only is there a legal requirement to do so, but it can also be incredibly detrimental should they fall foul of criminal activity. 

“Unfortunately, it does happen more often than you may think, particularly for those attempting to verify a vast number of buyers on a manual basis. 

“This is almost certainly an oversight due to stretched resources, rather than a cavalier attitude on the part of property industry professionals. 

“However, it does demonstrate the value that can be gained from a professional approach, whereby one identity verification can then be used across every area of the transaction process and by multiple shareholders such as agents, solicitors and mortgage brokers. 

“It also highlights the value of investing in a bonafide onboarding platform that will prevent any transaction from progressing should a buyer's identity not be properly verified. 

Not only does this approach save time, money and resources, but it reduces the chance for criminal entities to utilise the industry to launder their ill-gotten gains.”