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Paradigm launches online ID checks to comply with new AML regulation

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  • 09/01/2020
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Paradigm launches online ID checks to comply with new AML regulation
Paradigm Mortgage Services has revealed a range of fraud prevention tools and services for its members following the launch of its partnership with Experian.

Paradigm member firms now have access to Experian’s anti-money laundering (AML) ID&V checks service tool, credit bureau data and Onfido’s digital document verification products. The tools are designed to streamline the mortgage application process and help firms combat fraud in this area.

On 20 December, the government passed the fifth Anti-Money Laundering Directive into UK Law. It builds on the previous directive but with some new inclusions.

One addition is wording which states, wherever possible, businesses must use electronic verification for their AML checks rather than just looking at paper documents such as passports and driving licences.

Paradigm members will not need to purchase a license to use the AML tool, but will be charged a £1.75 transactional price. Onfido’s Digital Document Verification tool is available at £5 a use.

Brokers using the AML and digital document verification tools can run digital Know Your Customer checks that pass AML regulations allowing their clients to confirm their identities online without the need for paper forms or the expense of couriering identity documentation.

The credit bureau data tool means borrowers can show their adviser their own data within their credit file.

Paradigm has arranged two webinars on the 13 and 17 January to give members training on the tools.

The partnership follows on from Paradigm’s ongoing work to help member firms tackle mortgage fraud. Last year it issued an eBook entitled ‘Mortgage Fraud: Prevention and Cures’ while offering a range of fraud prevention services via its sister company, Paradigm Consulting.

Christine Newell (pictured), mortgage technical director at Paradigm Mortgage Services, said: “This new strategic partnership we have secured with Experian ensures advisers are putting in place even firmer foundations in order to combat potential mortgage fraud, and to ensure they keep their clients and their businesses safe.

“It is worth noting that there have been no recorded incidents of money laundering being committed where electronic verification has been used in a firm’s AML process.”

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