Not upheld: account restriction and denial of access to funds due to refusal to complete biometric identity verification complaint against Glint Pay Services Limited

Decision detail

Summary

Mrs W complained that Glint unfairly restricted her account and denied access to her funds unless she completed biometric identity verification. Glint, a regulated electronic money business, required biometric verification as part of its Customer Due Diligence process and stated no alternative verification methods were available. The ombudsman found that Glint's biometric checks were a reasonable compliance measure under Money Laundering Regulations and that the FOS lacks authority to challenge such regulatory compliance procedures, which fall under FCA jurisdiction. The ombudsman concluded that Glint treated Mrs W fairly, acted within its terms and conditions, and offered a reasonable alternative of temporary account access to withdraw funds and close the account. The complaint was not upheld.

The Ombudsman's reasoning

The ombudsman determined that Glint's biometric verification requirements were part of its compliance with financial regulations and Money Laundering Regulations, which are not prescriptive but require risk-based approaches. The ombudsman noted that it is not within the FOS remit to instruct a business on how to run its security procedures—that authority rests with the FCA. The ombudsman found that biometric checks are in common use among finance businesses and are reasonable for identity verification purposes. The account terms and conditions clearly authorized account restriction where Glint deemed it a risk. The ombudsman concluded that Glint treated Mrs W fairly and consistently with other customers in similar circumstances, and that the offer of temporary account access to withdraw funds was a fair and reasonable alternative.

How this compares

Source

Read the original decision on the Financial Ombudsman Service website