Digital challenger bank Monzo is warning 20,000 customers that it may have to temporarily freeze their accounts if they fail to provide additional verification information under new money laundering regulations.
The new regulation, which comes into force on 26 June, hits a 10% subset of Monzo users who have opted for a 'standard' level of identity verification which limits their account balance to a maximum of £2000.
Monzo says it will send in-app push notifications and e-mails to affected account holders urging them to provide additional verification details.
"It should only take a minute or two to complete — snap a photo of your ID (passport or driving licence ideally) and a 5 second video of yourself and we’ll then verify your identity," states the bank. "If you don’t submit the information in time, we will have to temporarily freeze your account. If this happens, don’t worry — your money is still safe! You can reactivate your account at any time by submitting the information requested or ask for a refund."
Alongside access to higher transaction and withdrawal limits, Monzo says customers will also be freed from the hassle of repeating the process when it rolls out its current account offering later this year.