Identity verification: What is the document number and its importance in verification processes

Identity verification represents one of the pillars of the modern financial sector, as banks and financial institutions rely on it to gather accurate identifying data from clients. The primary goal of these processes is to combat fraud, money manipulation, and criminal activities associated with the financial system.

Document Number: A Crucial Element in Verification Processes

The document number (, whether it is the identity card number or the passport number ), is the essential component relied upon by financial institutions for identity verification. This number provides a unique identifier that facilitates tracking and monitoring, reducing the likelihood of using false or fraudulent identities.

International Legal Context

The efforts to unify identity verification standards began when the Financial Action Task Force (FATF) was established in 1989 with the aim of combating money laundering globally. This group set international standards and comprehensive recommendations related to anti-money laundering practices (AML), which have been adopted by countries and jurisdictions in their own legislation. In the United States, for example, the USA PATRIOT Act of 2001 mandated banks to implement strict identity verification standards.

Required Documents and Data Verification

The lists of accepted documents vary from one financial institution to another, but the basic documents include:

• A driver's license or government ID ( that contains a personal photo and a unique document number )
• Passport
• Social Security Number
• Permanent account number card (PAN)
• voting card

In addition to identity verification, customers must provide proof of their residential address through multiple documents such as a utility bill, bank statement, or lease agreement.

Continuous Monitoring and Regular Updates

Identity verification does not end with account opening; it continues throughout the financial relationship. Institutions conduct periodic checks of customer records and request updates to information, while assessing the level of risk and monitoring transaction patterns to ensure adherence to expected behavior.

Applications Outside the Banking Sector

Identity verification practices have extended to the financial investment sector, where brokerage firms implement rule 2090 from the Financial Industry Regulatory Authority (FINRA). However, the goal here focuses on understanding customer needs more deeply rather than concentrating on anti-money laundering.

In cryptocurrency trading platforms, users are initially allowed to create accounts without completing the verification process; however, these inactive accounts provide very limited services.

Benefits and Challenges

Identity verification processes provide effective protection against money transfers and financial fraud, although they consume additional time and complicate procedures, especially for customers. These practices significantly contribute to reducing the use of digital assets in illegal activities, thereby enhancing the reputation of this sector.

Although compliance with verification requirements requires extra effort, the security benefits justify these investments. Nevertheless, users should exercise caution and not provide sensitive personal information without first ensuring that the platform applies high security standards to protect data.