New verification process is designed to meet regulations.
Escrow.com has started a new verification process for its customers, both buyers and sellers.
In order to send or receive payments to a personal account, users will have to provide a copy of a government-issued ID (such as a drivers license) and proof of personal address (such as a utility bill).
Businesses will need to provide a copy of a representative’s government issued ID, proof of address of that representative, and company registration documents.
This will no doubt add friction to the process of buying and selling domain names, particularly if the other party is not a frequent domain trader.
But the verification is necessary for Escrow.com to not run afoul of government regulations. Escrow.com GM Jackson Elsegood wrote on NamePros:
To combat the funding of terrorism and money laundering activities, US Federal law requires all financial institutions (including escrow companies) to obtain, verify and record information that identifies each person who opens an account. This requirement is present in many pieces of legislation, but the strongest requirement comes from FinCEN and the US PATRIOT Act, section 326. You can find more information about the US PATRIOT Act and it’s requirements on the US FinCEN site.
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