New Personal Banking Code Guidance for opening Basic Bank Accounts
Please note: The following new Guidance has been added under Section 3.1 of the
Banking Code and applies to the opening process for Basic Bank Accounts only. This new
Guidance does not replace any existing provisions within the Code and/or Guidance.
Availability of literature
Subscribers who provide front of house literature for their current account range should
ensure that such literature includes reference to the availability of the subscriber’s Basic
Bank Account (if they have one), and how to get further information. This reference might
take the form of a separate piece of literature or text within an existing leaflet.
ID + V
Where possible, subscribers should normally verify ID in branch for Basic Bank Account
applications. If a subscriber operates a central account-opening service, it should offer the
option for certified copies of ID&V documents to be sent to the central unit rather than
original documents.
Account opening timescale
A Basic Bank Account should take no longer than 10 working days to become operational.
The 10 working days are counted from the date the customer’s application is approved, i.e.
once any necessary identification and address validation checks have been completed.
‘Operational’ means the ability to pay into and make withdrawals from the account (i.e. via
a branch counter or an ATM)
Notes on the new Guidance
Availability of literature
This Guidance is intended to ensure that where front of house literature for current accounts
is displayed, reference is made to the availability (where applicable) of a Basic Bank
Account. Such literature should also signpost where customers can get further information –
although this signposting does not have to appear alongside the reference to the Basic Bank
Account i.e. the literature may have a more general section detailing sources of further
information about accounts.
ID + V
This Guidance is intended to ensure that, where possible, customers are not asked to send
away important documents in order for subscribers to satisfy identification requirements
under Money Laundering rules.
Where members have arrangements which allow a third party, such as a housing association,
to open Basic Bank Accounts on the member’s behalf, the same principles should apply
wherever possible. However, we recognise that such arrangements – which are for the benefit
of the customer - might dictate that existing ID verification methods are maintained.
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Account opening timescale
This Guidance is intended to ensure that there are no unnecessary delays to the opening of
Basic Bank Accounts. The introduction of 10 working days for an account to be operational
(following the completion of satisfactory ID checks), mirrors the Code requirement (under
Section 7.3) for switched current accounts to be operational within 10 working days.
Implementation Period
Subscribers to the Personal Banking Code must implement these new requirements on or
before the following dates:

Literature – 31st October 2006

ID + V – 30th September 2006

Opening timescale – 30th September 2006