Island Life Magazine Ltd August/September 2013 | Page 142

Legal issues with Terence Willey & Company

Money laundering
and ID checks
As we all know and experience on a
regular basis, it is often impossible
to transact business until you have
produced satisfactory ID to evidence
precisely who you are.
This often constitutes providing
a copy of your current passport or
driving licence, or if you do not have
one, then other photographic evidence
such as an authorised travel card with
your photograph on it, together with
a utility bill from your property of
not more than three months old to
evidence your place of residence.
Such requirements extend to
receiving legacies in Estates, which
often include the necessity for a
name search to be undertaken against
you to see if you are not subject to a
bankruptcy order or pending action in
bankruptcy, or any other difficulties
that may inhibit you giving a valid
receipt for money. Often searches and
enquiries are extended well beyond
just the provision of ID and often a
request to produce a copy of a current
bank statement evidencing that you
hold sufficient monies in your account
to transact business with professionals
and organisations.
Such checks are extended particularly
when considering purchase of a
property by auction to protect the
interest of the seller. Some Auction
Houses insist on pre-registration
by prospective bidders so that the
necessary money laundering checks
can be undertaken. Others who do
not, and simply require successful
bidders to produce ID at the time,
often run into difficulties.
The problem that arises here is that
142

www.visitislandlife.com

a potentially binding contract is made
as soon as the hammer falls. If no ID
is produced does the seller accept the
deposit from the buyer? The binding
contract will require the deposit to be
handed over, but usually the cheque
will not be cashed until the ID checks
have been completed. If no ID is
produced there will be no contract.

While the seller will have a
theoretical claim against the buyer for
breach of contract it is highly likely
that this will be worthless if no ID is
produced,