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I got my paycheck paid into my monzo. They don't require a proof of address, so I was able to open an account from my hotel room and have my card sent to my new

I got my paycheck paid into my monzo. They don't require a proof of address, so I was able to open an account from my hotel room and have my card sent to my new workplace before I had my own flat.

user5994461 7y ago
+1 Monzo doesn't ask for proof of address, while other banks will need something like a utility bill. As a newcomer to the UK, one is pretty much obliged to open a bank account with Monzo.
- easytiger 7y ago
  How is that legal under KYC laws etc?
  - growse 7y ago
    I'm a little rusty on this, so some details may not be correct. My understanding is that UK KYC basically don't specify exactly how to validate an individual's identity, only that the bank should do that (https://www.gov.uk/government/publications/identity-proofing-and-verification-of-an-individual https://www.gov.uk/government/publications/identity-proofing...). It does suggest that a person's identity is "often someone’s name, date of birth and address", but it doesn't seem to mandate that. I believe the requirement for banks to hold addresses is actually an AML requirement, and this only comes into effect for larger or riskier transactions. In a sense, the requirement to have a "provable address" just to open a basic bank account becomes quite problematic when you consider there are people who don't have fixed addresses. Whats worse, you discover that most of the ways in which you can get a fixed address require you to have a bank account (e.g. renting a place to live). It's an entirely unnecessary chicken-and-egg scenario caused by the insistence of the older banks on collecting proof of address, which they didn't technically need to do.
    - Matsta 7y ago
      Yes, you are correct, you only really need proof of address once you start offering credit (running hard credit check). And you're also correct in terms of AML - once a person crosses over a certain threshold or raises and risk alarms, they'll be required run further AML checks. Eg. if you were to signup to Monzo and then put 50 grand in there from a foreign account. What Monzo has to do since they are new, is keep a squeaky clean record with the authorities. This is why Monzo usually blocks or even bans anyone that buys Cryptocurrency eg: https://www.reddit.com/r/monzo/comments/avdw8o/notice_regarding_cryptocurrency_trading/ https://www.reddit.com/r/monzo/comments/avdw8o/notice_regard... Source: I work in Crypto
  - cosmodisk 7y ago
    I find the application of KYC differs widely not just between different banks but also between people working within the same banks, sometimes even within the same branch.
    - user5994461 7y ago
      Monzo has no KYC. They ask you to record a brief video saying your name and you want to join. That's it. Other banks vary a lot in what paper they accept, but they always want some papers.
- Matsta 7y ago
  Monzo also use Transunion for their credit checking which are lot more relaxed compared to the other big 2 (Equifax and Experian), which usually require 3 years of address proof to run through their KYC/credit checks.

I got my paycheck paid into my monzo. They don't require a proof of address, so I was able to open an account from my hotel room and have my card sent to my new workplace before I had my own flat.

user5994461 7y ago

+1 Monzo doesn't ask for proof of address, while other banks will need something like a utility bill. As a newcomer to the UK, one is pretty much obliged to open a bank account with Monzo.

easytiger 7y ago
How is that legal under KYC laws etc?
- growse 7y ago
  I'm a little rusty on this, so some details may not be correct. My understanding is that UK KYC basically don't specify exactly how to validate an individual's identity, only that the bank should do that (https://www.gov.uk/government/publications/identity-proofing-and-verification-of-an-individual https://www.gov.uk/government/publications/identity-proofing...). It does suggest that a person's identity is "often someone’s name, date of birth and address", but it doesn't seem to mandate that. I believe the requirement for banks to hold addresses is actually an AML requirement, and this only comes into effect for larger or riskier transactions. In a sense, the requirement to have a "provable address" just to open a basic bank account becomes quite problematic when you consider there are people who don't have fixed addresses. Whats worse, you discover that most of the ways in which you can get a fixed address require you to have a bank account (e.g. renting a place to live). It's an entirely unnecessary chicken-and-egg scenario caused by the insistence of the older banks on collecting proof of address, which they didn't technically need to do.
  - Matsta 7y ago
    Yes, you are correct, you only really need proof of address once you start offering credit (running hard credit check). And you're also correct in terms of AML - once a person crosses over a certain threshold or raises and risk alarms, they'll be required run further AML checks. Eg. if you were to signup to Monzo and then put 50 grand in there from a foreign account. What Monzo has to do since they are new, is keep a squeaky clean record with the authorities. This is why Monzo usually blocks or even bans anyone that buys Cryptocurrency eg: https://www.reddit.com/r/monzo/comments/avdw8o/notice_regarding_cryptocurrency_trading/ https://www.reddit.com/r/monzo/comments/avdw8o/notice_regard... Source: I work in Crypto
- cosmodisk 7y ago
  I find the application of KYC differs widely not just between different banks but also between people working within the same banks, sometimes even within the same branch.
  - user5994461 7y ago
    Monzo has no KYC. They ask you to record a brief video saying your name and you want to join. That's it. Other banks vary a lot in what paper they accept, but they always want some papers.
Matsta 7y ago
Monzo also use Transunion for their credit checking which are lot more relaxed compared to the other big 2 (Equifax and Experian), which usually require 3 years of address proof to run through their KYC/credit checks.