BoS fined £1.25m over lost ID

THE maddening requirement to provide passport and utility bill details for the simplest financial transaction was shown to be a waste of time at one bank today.

Bank of Scotland, part of the HBOS group, admitted its systems had been so bad that it could not retrieve the information - intended to curb money-laundering - in 55% of cases.

The bank was today fined £1.25m by the Financial Services Authority, which said the weaknesses could have 'seriously undermined' its ability to help police.

The bank failed to keep the necessary copies of customer ID evidence, the FSA said.

Since 2001, new customers have had to provide proof of identity in the form of passports or driving licences and proof of address. Banks have to keep copies.

Bank of Scotland said: 'We regret the error. We've put it right and we've done so quickly.'