TD Waterhouse, the UK's second largest execution-only broker, is to use the URU system from GB Group and BT to verify the identity of new subscribers and comply with money laundering rules.
URU works by asking a series of questions and checking the individual's answers against national reference databases such as mortality, electricity, telephone and financial industry data sets, and passport and driving licence details.
TD Waterhouse says it will employ the system in its account opening process.
GB Group's chief executive, Richard Law says this contract and other recent deals in the finance and telecoms sector provide "a strong indication of URU's effectiveness in tackling money laundering and fraud and of its potential to generate future revenues for the group".