Accountant wants credit card details of secretary?!?

[jonson]

I need some advice on something I found suspicious. My accountant who shall remain nameless, has asked the details of the company secretary to validate them, initially this was passport scan and a utility bill with proof of address...Fair enough....10 minutes later I get another email saying 'oh and I need her credit/debit card details too...for verification'

Of course which I refused, as I know fine well, you can't find the registration address of a debit card from the card number, or any information like that as it is secure.

Should I report them?

[jonson]

I would also like to add, it is me who pays the monthly fees via direct debit, and the secretary is not involved with the accountants fees in any way.

[Clare@InTouch]

Report for what to whom?

It's actually quite a common practice relating to verifictaion of your ID. I believe PayPal do it to - they pre-authorise your card without taking any money, thus proving you are who you said you are (or that the card does indeed belong to the person who claims it, which in conjunction with passport and proof of address proves your ID).

Accountants are subject to Money Laundering Regulations and we can end up in jail for a long time if we don't follow procedure and verify who our clients are. Your new accountant is just checking your ID.

Anyone who is involved with the company has to be run through ID checks - it prevents a terrorist being a shareholder & director but leaving someone else to "run things" so that they remain hidden.

[Clare@InTouch]

Ebay do it too

eBay keeps your credit or debit card on file to safely and quickly verify your identity.g some basic information about our members helps make eBay a safer place to buy and sell. Your card will be used for identification purposes only and will not be charged at any time.

Providing Identification for Registration

[jonson]

Yeah right...I'm sure a bank statement with address will suffice...but it's handy having those card details right? I wager within 6 months payments will be coming off that card for 'additional fees'

I'm just saying, that is not the only way to verify someone

[SueEllen]

Clare while you don't view it as odd I do as well.

I've never had a solicitor, mortgage broker or bank ask me to verify my ID for money laundering purposes with a debit or credit card in addition to other documents, or getting a doctor/another solicitor/magistrate verify my passport. Therefore I would find it extremely odd if an accountant did this.

A debit or credit card itself doesn't show anything there as the credit card bill or a bank statement would show the name, address and account details of the person.

[northernladuk]

I need some advice on something I found suspicious. My accountant who shall remain nameless, has asked the details of the company secretary to validate them, initially this was passport scan and a utility bill with proof of address...Fair enough....10 minutes later I get another email saying 'oh and I need her credit/debit card details too...for verification'

Of course which I refused, as I know fine well, you can't find the registration address of a debit card from the card number, or any information like that as it is secure.

Should I report them?

Before you report them I would ask them why and to supply details that what he is asking for will satisfy the requirements from the question why. Ask first before jumping to too many conclusions but always good to be wary.

[borderreiver]

Passport and/or driver's licence should be enough to prove identity at least. Residence is another matter ...

[SueEllen]

Ebay do it too

eBay keeps your credit or debit card on file to safely and quickly verify your identity.g some basic information about our members helps make eBay a safer place to buy and sell. Your card will be used for identification purposes only and will not be charged at any time.

Providing Identification for Registration

Ebay do it because if you were a fraudster you wouldn't give them your bank account or debit/credit card details you would give them someone elses.

It was on Watchdog last week that Paypal (who are linked to Ebay) block accounts with suspicious activity and required people to send them lots of documentation including copies of driving licenses and utility bills to prove they were acting lawfully.

[Clare@InTouch]

Yeah right...I'm sure a bank statement with address will suffice...but it's handy having those card details right? I wager within 6 months payments will be coming off that card for 'additional fees'

I'm just saying, that is not the only way to verify someone

It's not the only way to verify but it's often the easiest. If you fail normal AML procedures (due to moving address or not being registered on enough "lists" such as credit or council tax registration) then checking a credit card details is an easy and safe way to check who you are. Your accountant is not going to want to risk an unlimited fine by not following AML procedures.