When a customer wants to sign up for an account or perform a transaction, they must provide two types of papers to be verified: proof of identity and proof of address (PoA). Companies require these documents to verify one's identification and to comply with local or international legislation.
However, it is not as simple as it appears. Proof of residence forgery has been a major problem over the years. The paperwork is readily changed, and a temporary address has been provided to resemble the real one on several instances.
What a firm would accept as a document establishing residence may differ slightly depending on the type of institution or the jurisdiction in which it is located.
Banks, asset management firms, insurance companies, and other financial institutions are likely to require one of these documents in order to prove the address of their clients. However, there are a few additional choices that can be used as a means of proof of address.
The following papers can only be considered as legitimate evidence of address only with the condition that they include the address of the related person.
It's important to remember that the same document cannot be used to verify the user's identity and residence. If one of the ID papers has an address, additional supporting documentation will be requested at the time of the identity verification.
Some papers are insufficient to verify that the person's reported address is, in fact, what they say it is.
It's critical to collect these documents correctly. Failure to do so may open the door to fraud and attract regulatory notice, as well as the corresponding fines.
Most jurisdictional regulations make it nearly always mandatory to present legitimate proof of residence in order to proceed through the verification procedure. At the same time, such restrictions are essentially obsolete due to the ease with which documents may be falsified and the increasing frequency with which individuals change their residences. Some nations, such as Hong Kong, do not need proof of residency for the reasons stated. Although it will take some time that all rules will ultimately follow this method.
To begin with, every firm that does a proof of address check must have a detailed user guide that explains the procedure and criteria.
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