Why we ask for identification
Today, it is completely normal for us to ask for identification when you open an account, exchange currency, or pay a bill in cash. We may also ask you about the purpose of your banking activities.
This might seem annoying or make you feel distrusted as a customer. However, there is a good reason for it. The bank plays an important role in the fight against money laundering and the financing of terrorism.
Why does the bank ask so many questions?
The Anti-Money Laundering Act requires the bank to have a thorough understanding of all its customers. This is to help prevent misuse of the financial system. It also ensures that the bank is able to react if a customer behaves in an unusual way. The bank is obligated to report to the authorities if there is any suspicion that a transaction is linked to money laundering or terrorist financing.
What does the bank need to know?
The rules require the bank to know all its customers – regardless of who they are or how they use the bank. This means verifying your identity, and we will typically ask to see valid identification. The bank must also understand the purpose of your banking relationship and how you intend to use the bank’s services. If the bank is unsure whether the information is sufficient or up to date, we are required to ask again.
What kind of ID do I need to show?
The regulations do not specify exactly which type of ID must be shown. However, the bank will ask to see a proof of address, passport, or driver’s license, as these are considered secure forms of identification. The bank must be able to document that your identity has been verified, and is therefore required to retain a copy of the identification documents you provide.
Does the bank protect my information?
The bank naturally takes great care in protecting your personal information. It is essential to us that you, as a customer, can trust that your data is handled confidentially. Furthermore, the law imposes strict requirements on how the bank protects customer data.