D2C platform Selftrade reviews client data in money laundering checks

Execution-only platform Selftrade is carrying out a review of client records as it seeks to meet money laundering regulations.

A letter sent this week requested clients to fill out financial details to “reconfirm and refresh their proof of identity” and added that Selftrade was carrying out the review to “ensure we fully comply with all our regulatory obligations”.

It adds that clients who do not complete the form could see their accounts suspended.

A Selftrade spokeswoman says: “Selftrade is currently updating its customer records. As part of this process and in line with regulatory requirements, we are requesting our customers provide a range of information and documentation that may include proof of identity and residential address and details of their source of their wealth and funds. 

“As an execution-only broker, Selftrade, like other financial services businesses, is required by its regulators to comply with a wide range of anti-money laundering laws, regulations, best practice guidelines and policies.  All the information and documentation collected will be used solely for the purpose of meeting those regulatory requirements and will not be used for any other purpose.”

In January Selftrade axed its status as a bank after two years, reducing its responsibilities under the Financial Services Compensation Scheme.

The move took effect from 29 March and means Selftrade will no longer hold deposit-taking permissions and will instead outsource this to other banks.

In December, the firm’s parent Boursorama wrote down the value of the business by around €42m (£35.1m) because of regulatory demands and delayed IT migration.

Last January, the firm suspended taking on new customers on its platform after voluntarily varying its permissions following discussions with the regulator.