What types of checks can I carry out, and what do they do?

Red Flag Alert allows you to carry out different kinds of compliance checks in order to verify the identity of your clients. Within this due diligence process, there are different combinations and levels of verification that you can perform. 

They are: Identity Verification (IDV), Anti-Money Laundering (AML), Politically Exposed Persons (PEPs), Sanctions, and Adverse Media (PSAM), Bank Account Verification, and Phone Verification.

IDV

An IDV check is a process used to confirm the identity of an individual, often required for various transactions or services. This check involves verifying personal information provided by an individual against reliable sources to confirm their identity.

These checks are generally used when people are opening bank accounts, applying for loans, accessing online services, and preventing identity theft or fraud. 

IDV & AML

An IDV & AML check is a process that verifies an individual's identity while also assessing their risk for involvement in financial crimes such as money laundering or terrorism financing. This will involve identifying an individual’s identity and assessing their risk level for potential involvement in financial crimes through thorough background checks and screening against various databases. 

IDV & AML checks are usually used to check financial transactions like opening bank accounts and applying for loans, as well as complying with regulatory requirements to prevent money laundering and terrorist financing.

AML: Document Check

With AML, you can verify the authenticity of specific identification documents provided by individuals and assessing their risk for potential involvement in financial crimes through background checks and screening against various databases. If an individual has provided you with the details of their passport or driving licence, then you can verify these documents directly, without the individual needing to perform any additional tasks.

This is usually conducted when opening bank accounts, applying for loans, and conducting financial transactions, while complying with regulations to prevent money laundering and terrorist financing.

IDV, AML, & PSAM

An IDV & AML & PSAM check is a comprehensive process that verifies identity, assesses financial crime risks, and screens individuals against databases for politically exposed persons and sanctions lists. 

IDV & AML & PSAM check use cases include financial transactions, opening bank accounts, applying for loans, and compliance with regulations to prevent money laundering, terrorist financing, and dealings with sanctioned individuals or entities.

IDV & PSAM

An IDV & PSAM check is a process that verifies an individual's identity while also screening them against databases for politically exposed persons and individuals subject to sanctions.  

IDV & PSAM checks are used in financial transactions, opening bank accounts, and checking people/businesses before conducting business dealings to remain compliant with regulations to prevent dealings with politically exposed persons and individuals under sanctions.

Bank Account Verification

Bank account verification checks confirm that the bank details given (sort code and account number) are genuine, active, and actually belong to the individual who has provided them. 

Bank Account Verification is used to make sure that money is being paid to the right person, into the right account, before any money moves. It helps confirm that the sort code and account number are real and belong to the correct person, reducing the risk of fraud, misdirected payments, and failed transactions. This protects both the business and the client, and helps payments, refunds, and direct debits run smoothly.

Phone Verification

A phone verification check is a process that confirms a telephone number is genuine, active, and genuinely linked to a specific individual or business. This will involve checking that the number is currently in use, identifying who it is registered to, understanding how long it has been active, and determining whether it is a pay‑as‑you‑go or contract line.

Phone verification checks are usually used to support identity verification, reduce the risk of fraud, and ensure organisations are communicating with and servicing the correct customer, for example when setting up accounts, approving applications, or updating important contact details.