Q. (con't.) Should tax IDs be required internationally? If not, what means of identity verification should be employed? When in the process should this information be required, e.g., is it a good idea to allow an AP account to be created without a tax ID, if you have processes in place to ensure invoices cannot be processed or payments made until they are gathered?
A. Many countries do not issue tax IDs as we do in the U.S. Instead, they may supply registration numbers (for VAT, as an example). For an individual, it is recommended to require a copy of a driver’s license or passport/visa. It is a best practice, however, not to enter businesses or individuals into the customer master file until proof of being legal has been furnished. Use this information to verify that they are not on the OFAC sanctions lists of blocked or denied parties. You can search this list here: https://sanctionssearch.ofac.treas.gov.