Company Formation and Corporate Secretarial Compliance Service Provider AML Compliance

Legal Obligations

CODDAN CPM, being a regulated company formation and corporate secretarial service provider is obligated to comply with various Money Laundering, Terrorist Financing, Proliferation Financing Legislations, as well as the Local Authorities Act 2007.

This necessitates the identification of individuals for whom services are provided, requiring copies of identification documents for each director, shareholder, and beneficial owner of companies being incorporated.

Clients using Coddan’s online company registration portal to incorporate their new legal business entity with Coddan CPM, or requesting registered office address and mail handling services or Corporate and Secretarial Services should be able to provide required documents in a timely manner to make sure incorporation service or additional secretarial services are provided in a timely manner without undue delay.

By integrating robust Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures, companies can effectively mitigate potential risks while simultaneously fostering business opportunities. Although identity verification serves as a critical foundational element of the KYC process, a comprehensive approach encompasses numerous additional factors. These include thorough customer risk assessments, continuous transaction monitoring, and ongoing due diligence.

Such measures ensure that financial institutions not only safeguard themselves against fraud and illicit activities but also enhance their ability to identify and seize new growth prospects. By adhering to regulatory requirements and industry best practices, companies can foster stronger client relationships and build trust, ultimately creating a balanced environment where risk management and opportunity coexist harmoniously.

D Verification versus KYC: What is the Distinction?

Modern Identity Verification (IDV) plays a crucial role in the seamless onboarding of new players within various online platforms. The most reputable IDV providers gain access to comprehensive data from extensive public databases, which include sensitive information such as social security numbers, address records, and other vital personal details. These providers employ advanced matching algorithms that can swiftly compare a player’s information to existing public records in fractions of a second, effectively verifying an individual’s identity with high accuracy.

This cutting-edge IDV technology is seamlessly integrated into Player Account Management (PAM) systems, where the process of creating new player accounts takes place. Notably, the API offered by the IDV provider requires only a single identity verification step, after which the account is fully authorized for use.

Basic IDV serves as the cornerstone of diligent due diligence processes and proactive monitoring strategies. By accurately establishing the identities of your players and collecting their essential biographical details, you can enhance the effectiveness of your due diligence practices. This not only improves operational efficiency but also significantly minimizes the likelihood of encountering false-positive search results, thus streamlining compliance and enhancing security measures across the board.

KYC stands for Know Your Customer, and KYC identity verification refers to the process of verifying the identities of customers or clients to ensure compliance with regulatory requirements. KYC regulations are widespread in industries such as banking, financial services, and fintech.

The primary goal of KYC identity verification is to prevent illegal activities, including money laundering, terrorist financing, fraud, and identity theft. This process involves gathering and verifying customer information, assessing associated risks, and monitoring transactions.

Here are some common methods used in KYC identity verification:

Document Verification:This involves verifying the authenticity of identification documents provided by customers, such as passports, driver’s licenses, or ID cards. The documents are checked for security features, expiration dates, and consistency of information. Advanced technologies like Optical Character Recognition (OCR) and computer vision are often utilized to automate this process and detect any signs of forgery.

Biometric Verification: This method collects biometric data, such as fingerprints, facial recognition, or iris scans, and matches it against a customer’s identification documents or a stored biometric database. Biometric verification adds an extra layer of security by relying on unique physical characteristics that are difficult to replicate.

Address Verification: Verifying a customer’s residential or business address is a crucial part of KYC identity verification. This is typically done by comparing the provided address against utility bills, bank statements, or other official documents that confirm the customer’s residence or business location.

Database Checks: KYC identity verification often includes checking customer information against various databases to identify any potential risks. These databases may encompass government watchlists, sanction lists, criminal records, credit bureaus, and other relevant sources of information.

Electronic Identity Verification (eIDV): Some countries have established electronic identity verification systems that provide reliable and authenticated identity information. These systems allow businesses to verify customer identities by accessing official government databases or collaborating with trusted identity verification providers.

Customer Due Diligence (CDD): KYC identity verification also involves conducting customer due diligence, which assesses the customer’s background, risk profile, and the purpose of the business relationship. This helps businesses identify any potential risks associated with the customer and tailor their risk management strategies accordingly.

The specific KYC identity verification methods used may vary based on the industry, regulatory requirements, and the level of risk associated with the customer. Businesses often combine multiple verification methods to create a robust KYC process that meets legal obligations while safeguarding against fraud and illicit activities.

What documents would be required?

To ensure compliance, we require the following documents:

• Valid Proof of ID: Current valid government issued ID with a photograph.
• Valid Proof of Current Address: A recent utility bill, bank statement. Correspondence from an official independent source, such as a central or local government department or agency, is also acceptable.

Depending on the level of services required, additional documents – like declaration of beneficial owner, an activity disclaimer, a CV, a confirmation of a source of funds or sanctions compliance declaration may be required.

Although it may sound confusing, please rest assured, our highly experienced team of well-trained professionals will risk assess your service request and communicate specific requirements, so you don't have to figure it out on your own.

Identity Verification (IDV) is a crucial component of Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures. This solution meticulously verifies a user's credentials, such as their identity documents, address, and other relevant information. By doing so, it enables firms to ensure that they are engaging with legitimate individuals or entities before entering into business relationships. This process not only helps in preventing fraud and ensuring compliance with regulatory standards, but it also fosters trust and transparency in financial transactions by confirming the authenticity of customers.

Who would need to supply their identification documents?

Once we have received and reviewed your company formation application form whether through our online incorporation gateway or via email, we will review it and confirm to you directly whose IDs would be required. However, for your easy reference, please note that we would usually request Identification documents for any of the following:

• Anyone purchasing a company formation package, an address service, or certain company secretarial services (e.g., transfer or issue of shares).
• All directors of the proposed structure.
• All shareholders owning over 25% of a limited company (LTD, LBG, PLC, Unlimited Company) or a Partnership (LLP, LP, SLP).
• Any Ultimate beneficial Owner of the structure (if different from Directors/Shareholder) or any other person otherwise exercising significant control over the management and/or decision making of the legal business entity.
• Users of our Business Address Service wishing to have mail forwarded to them.

Would any additional documents be required?

Depending on the nationality and residency of the proposed directors, intended activity of the Company we are instructed to incorporate and/or the level of services you require, we may request additional information or documents to fulfil our obligations under the current AML Compliance Regulations.

Documents Verification and Certification Options

Digital ID Verification with UK AML Compliance Software

Coddan CPM is committed to a seamless and efficient identification process, ensuring compliance with the highest standards of Money Laundering, Terrorist Financing, Proliferation Financing Legislations, and the Local Authorities Act 2007.

Electronic ID Verification: Swift and Convenient process to fast track your company registration application.

To simplify ID verification, we have partnered with CREDAS – UK AML compliant software provider that offers a state-of-the-art mobile app for digital ID verification, providing a quick and efficient solution for our customers to complete ID verification in a timely manner.

90% of ID Verification request are completed within as little as 5-10 minutes and all you would require is your smartphone and your ID document.

When using the app, we recommend using your passport and a proof of address document dated within the past 3 months.

How CREDAS Works.

It really is very simple! Our Corporate Team will send you an invitation via email with simple instructions on using the CREDAS app.

Utilise the app to digitally verify and send us your proof of ID and address in just 5 minutes.

For the 10% of customers who are ineligible for the digital ID verification or in case of a failed digital ID check, our Team will contact you to discuss available options.

You can also provide copies of identification documents certified via: Regulated Professional or Post Office.

If you choose to certify documents yourself at the Post Office, notary, or solicitor, follow these steps:

• Certification: Once certified, scan copies of proof of ID and address.
• Forward via mail: Send scanned copies to KYC@CODDAN.CO.UK.
• Send by Post: Post certified copies to our office at the following address: Coddan CPM LTD, Corporate Department, Unit 3, Office A, 1st Floor, 6-7 St Mary At Hill, London, EC3R 8EE United Kingdom.

Certified Translations for Foreign Language Documents

Important to Remember, if your documents originate in a foreign language or have been certified in a language other than English, please note the following:

should you chose to opt for certification of documents by a regulation professional, please keep in mind that any documents that have been issued in a foreign language or that have been certified in a non-English language will need to be accompanied by a certified translation.

In some circumstances, exceptions can be provided for proof of address documents. Utility bills or bank statements issued by a recognisable utility service provider, or a bank are exempt from translation requirements. However, these documents must contain the name and address of the individual written in Latin characters for easy identification.

Being a regulated Company Formation, Corporate and Secretarial service provider, we are not able to process your order until we have completed statutory AML compliance and risk assessment. To help us to complete this process as quickly and as smoothly as possible, we kindly ask you not to delay provision of the required KYC/Due Diligence documents.

Your order will be processed upon receipt of scanned copies at KYC@CODDAN.CO.UK.

At Coddan CPM, we strive to make the ID Verification process as straightforward as possible while maintaining compliance with regulations.

We appreciate your cooperation in upholding compliance with regulatory standards.

If you have any concerns or queries or would like to discuss any specific questions, feel free to give our a call. We will be happy to assist.