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Should you use NFC for client identity verification?

Explore the benefits and limitations of using NFC for client ID checks, and when to use standard CDD as a reliable alternative.

Shanté Simpson avatar
Written by Shanté Simpson
Updated yesterday

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  • ❌ Using an older smartphone or outdated software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


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