Document verification

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Glossary · KYC and identity

Document verification

Also called ID document verification, identity document checks

Definition

Document verification is the check that an identity document, such as a passport, driving licence or national ID card, is genuine, valid and belongs to the person presenting it. Firms use it during onboarding to verify a customer's identity, often alongside a selfie or biometric check that matches the face to the document photo.

01 MRZ CHECKSUM02 SECURITY FEATURES03 PHOTO MATCH04 EXPIRY DATE
Fig. 1 · Document verification
Money Laundering Regulations 2017 · AMLR · Customer Identification Program rule
Key rulesMoney Laundering Regulations 2017 · AMLR · Customer Identification Program rule · Data (Use and Access) Act 2025
Applies toBanks, payment firms, cryptoasset firms and other relevant persons
RegionsGlobal · UK · EU · US
01

How it works

Most checks now run remotely. The customer photographs the document or taps its chip with a phone. Software reads the machine-readable zone and chip data, checks fonts, holograms and layout against templates, and looks for signs of editing. A face match links the document to the person, and failed or unclear cases go to a human reviewer.

AML rules require firms to verify identity using reliable, independent sources, and identity documents are the most common source. Document fraud is rising because criminals can buy forged templates and use generated images. Firms therefore combine document checks with liveness detection, database checks and device signals, and supervisors expect firms to show their checks are reliable.

Step 1Capture documentPhotograph the document or read its chip.
Step 2Check authenticityTest security features, data consistency and signs of tampering.
Step 3Validate dataConfirm expiry, format and checksums in the machine-readable zone.
Step 4Match holderCompare the document photo with a live selfie.
Step 5Review exceptionsSend failed or unclear checks to a trained analyst.
02

The rules

UK · 26 June 2017Money Laundering Regulations 2017The Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017 (SI 2017/692), regulation 28

Requires identity verification on documents or information from a reliable independent source, which can include secure electronic identification processes.

Banks, payment firms, cryptoasset firms and other relevant persons
EU · Applies from 10 July 2027AMLRRegulation (EU) 2024/1624 on the prevention of the use of the financial system for money laundering or terrorist financing

Article 22 allows identity verification by identity document, passport or equivalent, or by eIDAS electronic identification means at substantial or high assurance.

Credit and financial institutions and other obliged entities in the EU
US · 9 May 2003Customer Identification Program ruleCustomer Identification Programs for Banks (31 CFR 1020.220), under section 326 of the USA PATRIOT Act

Requires banks to verify customer identity through documentary methods, such as unexpired government-issued photo ID, or non-documentary methods.

US banks and savings associations
UK · 19 June 2025Data (Use and Access) Act 2025Data (Use and Access) Act 2025, Part 2: Digital verification services

Places the UK digital verification services trust framework and register of certified providers on a statutory footing.

Providers of digital identity and verification services
03

Common questions

What is the difference between document verification and identity verification?

Document verification checks that an ID document is genuine and valid. Identity verification is wider. It confirms that the person is who they claim to be, and can combine document checks with biometric matching, database checks and digital identity.

Is a photo of a passport enough for KYC?

Usually not on its own. A photo can be edited or show a stolen document. Firms add checks on security features, chip data where available and a face match with liveness detection to show the person is present and matches the document.

What is NFC document verification?

Many passports and ID cards contain a chip holding the holder's data and photo, signed by the issuing state. A phone can read the chip using near-field communication and check the signature, which is harder to forge than the printed page.