What Documents Count As Proof Of Address?
Going through an AML or KYC check is not a simple to understand process. In most jurisdictions, the requirements that have to be respected are blurry and not known by regular business owners or clients of financial institutions. Proof of residential address and identity are both needed in KYC checks.
To put things as simple as possible, when you go through a KYC check, you need 2 mandatory documents:
- Proof of address
- Proof of identity
Getting these documents allows the business to comply with global or local regulations. In addition, it establishes the identity of the individual when it is verified. KYC checks are also in place when creating online accounts on financial platforms, sites that allow betting, share-related investments and more.
Proof of address is where the controversies start. The document that offers this can so easily be falsified. Temporary addresses were often submitted in the past in order to imitate permanent residency. It is really important for every single business that is forced by the law to use KYC practices to actually set them up in a way that full law compliance is a reality.
What documents can be used as proof of address? Some items are valid and others are not. In order to be sure that a verification process runs as smoothly as possible, the following documents can be considered as being proof of address by most financial institutions:
- Bank statements that are dated and that have a personal name. Usually, the statements do not have to be older than three months.
- Credit card statements.
- Utility bills that are linked to a residential property. This includes water, electricity, landline telephone, internet and gas. As before. The documents should not be older than three months.
- House purchase deeds.
- Lease agreements. When these are used, receipts for the past 3 months rent are usually needed.
- Letters from recognized public servants and public authorities. This also includes government-issued correspondence, as long as the document is not older than six months.
- Employer certification that can be used as residence proof.
Other documents can be used as proof of address but what is accepted does depend on the financial institution that requires the KYC in the first place.
Other documents that are proof of residence can be utilized but they are only accepted in some cases. Examples of such documents include:
- Driving license
- ID card
- Passport
You cannot both proof identity and residence with just one document. When there is a document with an address, there needs to be another supportive document that will verify it. With this, the identity check does not work.
Documents that you cannot use as a valid proof of address include:
- Bank references
- Transfer receipts
- Pension statements
- Bank statements that are older than three months
- Insurance policies
Final Thoughts
To sum up, it is really important to offer the proof of address document that can actually prove it in a way that is accepted. Unfortunately, many just submit the documents they think will work. Always respect indications to be proved.