"I need to see some ID" is a phrase that banking officials, like pub bouncers, increasingly have cause to utter in their daily working lives.

Anti-money laundering regulations require potential bank customers to prove that they are who they say they are before they can be issued with a sort code, account number and inventory of fees and charges.

The standard accepted forms of photo ID are either a current valid passport or driving licence. But unlike local drinking establishments, banks also require consumers to furnish a recent utility bill before they will let them purchase any products.

A new report claims a growing number of people are being prevented from opening bank accounts because financial institutions are interpreting the anti-money laundering guidelines too stringently.

Guidelines issued by the Department of Finance in November 2001 that allow banks to accept identification documents besides the passport or driving licence plus utility bill are being ignored, according to the Money Advice and Budgeting Service (MABS).

These guidelines, approved by the Money Laundering Steering Committee, allow financial institutions to accept an identification form with a photograph signed by a member of the Garda.

Documents issued by a Government Department showing the name of the person in conjunction with a statement from a person of responsibility confirming the person's identity and address are also acceptable.

A "person of responsibility" can be a solicitor, accountant, doctor, minister of religion, teacher, social worker or community employment scheme supervisor.

Banks can also accept a letter from an employer or licensed employment agency verifying that the person has recently arrived in the State and has started or is about to start work, stating that the person is not able to produce a utility bill showing an Irish address.

However, it is at each credit institution's discretion as to whether or not to accept these alternative documents.

Ms Nuala Ní Ghabhann, co-ordinator of the Exchange House Travellers Service, says it is the inflexible interpretation of the rules that is causing difficulties. "The legislation doesn't need to be changed, the banks need to change their policies," she said.

In some cases, MABS says that the banks' lack of flexibility has prevented or delayed people from taking on employment or joining training courses where wages are sent electronically into bank accounts.

At the launch of the MABS report, the Minister of State for Community, Rural and Gaeltacht Affairs, Mr Noel Ahern, said the identification rules were "very necessary" but that there may have been instances where staff of financial institutions had been "overzealous".

MABS, a Government-funded advice service with offices in every county, is discussing the issue with the Irish Bankers' Federation.

Mr Liam Edwards, national co-ordinator of MABS, said that it also hoped to work with representatives from the Irish Financial Services Regulatory Authority, individual credit institutions, the Department of Finance and the Irish League of Credit Unions .

The MABS report focuses on clients of the Exchange House Travellers Service, an increasing number of which are being refused bank accounts in the Dublin area.

However, the report says the difficulties experienced by Travellers are also shared by other minority groups.

In theory, anyone who does not have their name on a utility bill runs the risk of being denied access to banking facilities for not providing proof of address.

It is the requirement to provide proof of address that is often the sticky part and can sometimes lead to a vicious circle.

In order to get your name on one bill, you may be required to produce an existing bill with your name on it.

For primary and second-level student customers, the policy of most banks is to accept a stamped letter from the student's school.

Once people are in the banking system, proving their identity should become less of a problem. If they want to switch banks, for example, a current statement from their existing bank should suffice as proof of address.

But in the case of joint account customers, banks are required by the legislation to seek photo ID and proof of address in the case of both parties.

Not everyone has their name on a utility bill nor wants to.

In the rental sector, bills are frequently held in the name of one tenant or, in some cases, the landlord or landlady.

Rent-payers are often reluctant to put their names on bills in order to avoid having to make up the difference when co-tenants fail to pay.

Recent arrivals in the Republic and returning emigrants are another group who may encounter obstacles before they are able to access daily banking services.

Some have reported only managing to set up a bank account once they had put a household bill in their name and waiting one or two months for it to arrive, after letters from employers confirming both identity and address did not suffice.

In the interim, such individuals may be forced to make special arrangements for payment with their employer and carry around large quantities of cash.