AUSTRAC guidance on alternative ways to verify a customer’s identity

AUSTRAC has published guidance on Part 4.15 of the AML/CTF Rules – Procedure to follow where a customer cannot provide satisfactory evidence of identity.

Under the rule, if a customer cannot produce their driver’s license or birth certificate, or they show a different address, banks and other regulated businesses can use alternative ways to verify their customer’s identity.

Reporting entities may rely on Part 4.15 in limited and exceptional cases where a person does not possess and is unable to obtain, the necessary information or evidence of identity.

This may include individuals whose birth was not registered, people who are homeless, undocumented arrivals in Australia, people living in remote areas, people who are transgender or intersex, people affected by natural disasters, people with limited access to identity documents (for example because they were raised in institutional or foster care), people with limited participation in society, and young people or those over 18 who have not established a ‘social footprint’ in the community.

AUSTRAC says the Rule will also apply to a customer whose information in their identification documents could be out of date, or there could be conflicting information in different documents.

This might be the case for Aboriginal and Torres Strait Islander customers who live in remote areas, customers who are affected by a natural disaster such as bushfires, people with limited access to identity documents (such as those who are experiencing or have experienced family and domestic violence, people experiencing homelessness or with an address inconsistent with their identity documents), or customers who have come to Australia as refugees.

If you found this article helpful, then subscribe to our news emails to keep up to date and look at our video courses for in-depth training. Use the search box at the top right of this page or the categories list on the right hand side of this page to check for other articles on the same or related matters.

David Jacobson

Author: David Jacobson
Principal, Bright Corporate Law
About David Jacobson
The information contained in this article is not legal advice. It is not to be relied upon as a full statement of the law. You should seek professional advice for your specific needs and circumstances before acting or relying on any of the content.

Print Friendly, PDF & Email

Your Compliance Support Plan

We understand you need a cost-effective way to keep up to date with regulatory changes. Talk to us about our fixed price plans.