Guidance

'Know your customer' guidance, accessible version

Published 4 October 2016

Applies to England

For all applications – know your customer (KYC) requirements – anti money laundering (AML) specific

A valid proof of identity and a proof of current residential address will be required for those person(s) who ultimately owns or controls the customer and/or the person on whose behalf the transaction is being conducted. It will also include those persons who exercise ultimate control over the customer’s business.

Proofs of ID and address will also be required on a risk based approach for those person(s) who will transact with Homes England and/or give Homes England instructions concerning the use or transfer of funds or assets. This may include the customer’s directors (or equivalent), authorised signatories, etc. Additional background information on the individual (s)’ background may be required on a risk based approach.

Complex company structures, particularly if they include offshore entities – a company structure chart must be provided.

Politically exposed persons (PEPs) / Sanctions checks – additional information relating to country of birth/ country of residence etc, for key controllers/beneficiaries may be required to enable enhanced due diligence to be performed if required.

Source of wealth and source of funding for key controllers, beneficiaries and company – we will require details of how the entity and/or key controllers/beneficiaries generated their wealth and clarification as to where the funds for the transaction originate from. Documentary evidence will be required.

Company Identification

People with significant control (PSC)

From July 2016 companies have been required to maintain a register of people with significant control (PSC Register), and to file this information at Companies House. The PSC Register will need to include details of Individuals with significant control over the company who are ‘registrable’ along with the details of any registrable legal entities.

Documentation for UK companies

For UK companies we will download a copy of the Certificate of Incorporation directly from Companies House. Alternatively we may require either the original Certificate of Incorporation which we will return, or a certified copy, please refer to section 0.4 below. For UK companies that have been recently incorporated, please supply a certified extract of the company’s shareholder register.

Documentation for non-UK companies

For non-UK companies, we require evidence of registration as detailed below:

• official evidence of registered address – for example, an extract of a trade register
• a certified Certificate of Incorporation
• a certified copy of the documents required by law on the formation of a company and on any change of name for example, the Memorandum and Articles of Association for the company
• a certified Certificate of Good Standing or Legal Validity from a qualified lawyer
• a certified Register of Shareholders or Members
• a certified Register of Directors

It is preferred that we see the original documents, but if this is not possible the copies must be certified. Please refer to section 0.4 below for guidance about certification.

Report and accounts

All companies that have been trading for more than 18 months or more must provide a copy of the latest report and accounts (audited where applicable).

Please note that, if the beneficial ownership of the account holding entity is through a series of other entities, we will require documentary evidence of the legal existence of these entities, together with a legal entity structure chart. Please ask your Homes England contact for further information.

Identification requirements of those persons who have control over the business

We require 2 forms of identification in respect of all beneficial owners or principal controllers being those individuals who have an interest in any entity in the corporate structure of 25% or more and all persons who are authorised to sign on behalf of the business with respect to Homes England documentation.

Proof of identity

We prefer to see the original document, but if this is not possible, copies must be certified as a true copy of the original, please refer to section 0.4 below.

The primary form of identification must bear a photograph and signature:

• full UK or foreign passport that has the Machine readable zone
• full UK or foreign photo card driving licence
• photo card national identity card that has the Machine readable zone

The passport, driving licence or national identity card must be valid, up to date and be signed by the holder.

Proof of address

The second form of identification must confirm the individual’s permanent residential address:

• Full UK photo card driving licence bearing residential address (if not already used as your proof of identity)
• UK or foreign bank credit card or bank statement (dated within the last three months and not printed from the internet)
• UK mortgage statement (dated within the last 12 months and not printed from the internet)
• UK council tax bill (for the current year)
• letter/bill from utility company (less than 3 months old, except for water bills, which must relate to the current charging period). The letter you receive must confirm you receive a service from the company and cannot be printed from the internet. Mobile phone bills are not accepted
• UK TV licence letter or Direct Debit schedule (less than 12 months old). This should confirm your name, address and existence of a TV licence
• voters roll search

We do not accept utility bills printed off the internet. Online bank statements may only be accepted if stamped and certified bearing the account holder’s address.

Mobile telephone bills, store card statements and any documents showing a ‘care of address’ or non- residential address cannot be accepted.

If any party has previously been identified by Homes England in conjunction with another scheme, please indicate this on the KYC form if you would like us to use previously supplied information (provided this remains up-to-date and valid). If Credit Reference Agency searches are required, these may be refreshed if necessary.

Certification of documents

People who can certify documents are:

• employees of Homes England (for UK-issued documentation only upon sight of the original)
• a qualified lawyer or attorney, registered with the relevant national professional body
• a qualified accountant, registered with the relevant national professional body
• a notary public, a member of the judiciary, a senior civil servant or a serving police officer
• a director, manager or bank counter staff of a bank or an authorised credit or financial institution and stamped with an official stamp
• a British Embassy, consulate or high commission officer in the country of issue
• a chartered secretary, registered with the Institute of Chartered Secretaries and Administrators
• a chartered legal executive registered with the Chartered Institute of Legal Executives
• a Commissioner for Oaths
• a licensed conveyancer
• an employee of the UK Post Office

Please note that individuals within the above categories in most countries are acceptable but exceptions may apply. If you require further information on the exceptions before providing the documentation please liaise with your contact at Homes England.

Certification requirements

The person giving the certification must use a firm’s stamp or, if not available, provide an accompanying letter on company letterhead confirming which documents have been certified.

They must also provide the certification (including the firm’s stamp if used) directly on the copy of each document including:

• ‘certified to be a true copy of the original seen by me’
• print his/her name clearly in capitals
• sign and date the copy document
• clearly indicate his or her position or capacity
• provide the name and address of the firm that they are employed by
• provide the name of the institution that they are a member of together with their membership number

Documents that have been certified on the reverse of the document’s copy are not acceptable. The certifiers need to certify the pages that contain the copies of your documents.

For security reasons if sending originals of the above documents through the post, please ensure you use Special/Recorded delivery as we cannot be held responsible for their safe receipt. Documents should be sent to your Homes England contact, clearly marked with the name of the applicant and Homes England project name.

Please note that independent certification is a Homes England requirement and we may have no option but to return documents that are not certified in accordance with our guidelines above.

Your information

We may use credit reference agencies in order to verify your identity using information from the Electoral Register and other public sources.

We may use details of your credit history (together with those of any financial associate with whom your financial records have been linked by the credit reference agencies) to assess your suitability for an investment and your ability to meet your financial commitments.

Crime prevention and debt recovery

To prevent crime, verify your identity and to recover debt, we may exchange information where appropriate, with fraud prevention agencies, law enforcement agencies, debt recovery agencies and other organisations including other lenders.

If you give us false or inaccurate information and potential fraud is identified, details will be passed to fraud prevention agencies to prevent fraud and money laundering.

Data processing

Homes England is committed to protecting your privacy and the security of your personal data. Please read our privacy notice to find out more about how we do this.

Freedom

Homes England acknowledges that the information supplied by the applicant (including its advisors and consultants) to enable Homes England’s KYC due diligence has been provided in confidence and that any disclosure of such information pursuant to Homes England’s obligations under the Freedom of Information Act 2000 (Act) may prejudice the applicant.

On receipt of a request, received pursuant to the Act, for information referred to in the preceding paragraph, Homes England confirms that it shall (in Homes England’s absolute discretion):

1. consider the application of the exemptions from disclosure contained in the Act and
2. consult the applicant (where appropriate).