BAT LAUNCHES ADVANCED ID VERIFICATION SOLUTION
Financial advisers and mortgage brokers across the UK are preparing for heightened anti-money laundering (AML) compliance requirements following HM Treasury’s approval of revised guidance under the Money Laundering Regulations 2017, effective 23 April 2025.
The updated guidance, published by the Legal Sector Affinity Group (LSAG), introduces several significant changes that will impact verification processes for financial professionals. These include new provisions regarding the register of overseas entities, an expanded list of high-risk countries, and enhanced due diligence requirements for third-party fund contributors and politically exposed persons (PEPs).
Industry experts note that the most challenging aspect of the new requirements involves ownership structures of foreign trusts, companies, and foundations. Under the revised guidelines, simply identifying beneficial owners is insufficient; advisers must now demonstrate comprehensive risk assessment processes for money laundering and terrorism financing.
“These changes represent a substantial increase in documentation and verification responsibilities,” said a Kirsty Turner, a compliance specialist familiar with the new regulations. “Many firms are concerned about maintaining efficiency while meeting these enhanced requirements.”
In response to these challenges, BAT has announced the integration of YOTI biometric verification technology into its platform. The new service provides financial advisers with a streamlined verification system that includes one-click client verification links, government-grade biometric authentication, and automated checks against global AML databases.
The system is accessed through BAT’s client portal, where advisers can generate secure verification links to send to clients and maintain comprehensive audit records. According to BAT representatives, the solution is designed to help firms meet the new regulatory standards while minimizing administrative burden.
“With regulatory scrutiny intensifying, technology solutions that can demonstrate compliance are essential” says Charlie Palmer from BAT, “Particularly for Senior Management Function (SMF17) holders responsible for compliance oversight.”
The full revised guidance document is available on the Council of Licensed Conveyancers website, though BAT suggest that most advisers will need to focus primarily on the implementation of enhanced verification processes rather than mastering the entire 200+ page document.
Financial advisers interested in the YOTI verification service can find more information through their existing BAT platform access, under Clients and BATSTORE.