Near Field Communication (NFC) technology allows us to securely verify client identities by reading the RFID chip embedded in biometric passports or ID cards. This process ensures authenticity and provides a high level of compliance.
Why Use NFC?
✅ Meets HM Land Registry’s “Safe Harbour” Standards
Using NFC for ID checks aligns with HM Land Registry’s Digital ID Standard, potentially protecting your firm from liability if fraud occurs despite proper checks.
✅ May Reduce Insurance Premiums
Some Professional Indemnity Insurance (PII) providers may lower premiums for firms that adopt secure verification methods like NFC, due to the reduced risk of fraud.
✅ High Level of Security
NFC verification confirms both the validity of the ID document and that it matches the individual presenting it.
Common Barriers to NFC Use
While NFC is a powerful tool, it may not always be an option due to:
❌ The client not having a biometric passport
❌ Using an older smartphone or outdated software
❌ Encountering technical difficulties during the process
Industry note:
20–30% of clients typically drop off at the NFC stage due to one or more of these issues.
Recommended Backup: Standard CDD
To avoid delays and drop-offs, always offer Standard Client Due Diligence (CDD) as a fallback when NFC is not suitable.
Standard CDD Benefits
🌐 Browser-Based: Easily accessible—no app or special device needed.
🛡️ AML Compliant: Fully meets anti-money laundering regulations.
✅ GPG 45 and SRA-Compatible: Ensures a robust check within legal guidelines.
📝 Audit Trails: Creates a clear record of identity checks for high-value or complex cases.
Best Practice Tip
Avoid using paper-based ID checks whenever possible - they introduce more risk and often don’t meet regulatory best practice.
In Summary
Method | Pros | When to Use |
NFC | Highest security, regulatory protection, potential insurance savings | When the client has a biometric ID and modern phone |
Standard CDD | Reliable, accessible, still compliant | When NFC is not an option |