When a user wants to create an account or make a transaction, in order to get verified they need two submit two most commonly asked documents—proof of identity and proof of address (PoA). Companies request these to establish one’s identity and to comply with the demands of local or global regulations.
However, it is not as easy as it might sound. Over the years, proof of residency falsification has become a serious issue. The document can be easily altered and there are multiple occasions when a temporary address was submitted to imitate the permanent one.
To put doubts to bed, let’s see what documents can and can’t be accepted as proof of address.
What documents count as proof of address
Depending on a particular type of institution or the jurisdiction it is located in, there might be a slight change as to what a company will choose to accept as a document proving residency.
Common proof of residency examples
First, we want to look at some of the most common examples an organization can accept as a valid proof of address.
- Bank statement with the date of issue and the name of the person (the document must be not older than 3 months);
- Utility bill for gas, electricity, water, internet, etc. linked to the property (the document must not be older than 3 months);
- Lease agreement together with the last receipt for at least 3 months of rent;
- Credit card statement;
- Letter from a recognized public authority or public servant (any government-issued correspondence not older than 3 months);
- Employer’s certificate for residence proof;
- House purchase deed.
Banks, asset management companies, insurers, and other financial companies will probably make a request for one of these. However, there are some more options to be aware about.
Alternative proof of residency examples
These are the documents that can be accepted as a valid proof of address only if there is the address mentioned on them.
- Identity card;
- Driving license.
Remember that the same document can’t be used to confirm both the user’s identity and the place of residence. By law, if one of the ID documents has an address on it, another supportive document will be required at the identity check stage.
What documents don’t count as proof of address
Some documents are not enough to assure that the address stated by the person is indeed what they say it is.
- Old government-issued correspondence (older than 3 months);
- Old bank statement (older than 3 months);
- Old utility bill linked to the property (older than 3 months);
- Pension statement;
- Bank reference;
- Insurance policy;
- Transfer receipt.
It is important to gather these documents accurately. Failure to do so might give room for fraud and invite regulatory attention followed by relevant penalties.
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When does one need to request a proof of address
From our experience, it is almost always compulsory to submit a valid proof of address to go through a verification process as stated in most of the jurisdictional laws. At the same time, such requirements are largely outdated as the documents can be easily faked and people are changing their places of residency more and more frequently.
For the mentioned reason, some countries like Hong Kong don’t have proof of residency in their requirements. We believe that all regulations will eventually adopt this practice, although it will take some time.
How to check PoA
First of all, every company that performs proof of address check has to have a comprehensive guide that describes the process and requirements for the user.
If there is no possibility to conduct an automated check, there are a few necessary steps to manually verify the documents proving residency:
- Accurately inspect the document for watermarks, security features, common patterns of graphics editing;
- Check if the document is of valid issue date (no older than 3 months for bank statements, utility bills, government-issued correspondence);
- Make sure that the document has the person’s name on it;
- Check if the document has the address (the more specific the better) and confirm it’s existence through a search engine such as Google or Naver. If the applicant submits the address without the apartment number while living in a block of flats, the compliance officer must request them to specify the flat as well.
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