Banks and other institutions are obliged to establish the identity of a customer before opening a new account or carrying out a transaction.

Opening a bank account can be a headache if you are unable to easily produce the right documents relating to proof of identity and permanent address. Some new residents in the Republic can face particular problems.

Financial institutions, including insurance companies and stockbrokers, are obliged to take certain measures to prevent money laundering. One of these is the requirement that financial institutions establish the identity of customers.

The financial institutions are also legally obliged to report any suspicions of money laundering directly to the police. The law applies to nationals and non-nationals.

So if you wish to open an account with a post office, bank, building society or credit union for the first time, you must produce evidence of your identity (including a photograph) and evidence of your permanent address.

Acceptable photo ID includes a passport, a driving licence, a current identity card from a known employer, or a student ID card from a known third-level institution.

If you do not wish to open an account with a financial institution but wish to carry out transactions (usually greater than €13,000), you must show evidence of your name and address from two different sources. A USIT or International Student Identity (ISIC) student card is not acceptable, nor is a bus pass.

Any of the following documents providing evidence of your address are adequate:

• a recent original household bill in your name;
• a current driving licence;
• an identification card with photograph issued by the Garda Siochána;
• a pension/benefit book issued by the Department of Social, Community and Family Affairs;
• a recent original bank or building society statement in your name;
• an entry in the electoral register or a telephone or street directory;

Financial institutions have alternative arrangements in place for establishing your identity if you do not possess the above documentation - for more information, contact the relevant financial institution.

In some cases a bank will accept a letter of introduction from an employer, verifying the customer's address, date of birth and personal public service (PPS) number, formerly know as an RSI number.

The banks take the verification process very seriously. Any official of a financial institution who opens an account without fulfilling the requirements of the 1994 Criminal Justice Act is held personally responsible under the Act and may face imprisonment for non-compliance.