Home › Forums › Australian Financial Services Licensing (AFSL) Forum › How do retail and industry funds verify ID and perform a risk assessment if they do not see the client face-to-face?
September 26, 2011 at 7:10 am #2382
In terms of AML/CTF, how do retail and industry funds verify ID and perform a risk assessment if they do not see the client face-to-face?September 27, 2011 at 1:39 am #3062
Archived UserMemberPerforming a risk assessment without meeting a client requires the capture of relevant Know Your Customer (KYC) information and other information (e.g. Investment Options) in order to categorise the risk of the account (low/med/high) and then perform the relevant risk weighted identity verification. Risk assessment can be based on a number of factors such as the client’s product selection, occupation, country of residence etc. – it is ultimately up to the organisation to define the rules based on their service offering. To perform a risk assessment and subsequent required identity verification it is most efficient to capture client application data for new accounts electronically.Off the back of electronic capture of application information, Electronic Identity Verification is a method that can be utilised in order to verify identity without meeting the client face-to-face. It is an acceptable method of identity verification under the AML/CTF Rules (and used by industry) however requires a more stringent check to be performed in order to meet the Safe Harbour standard.Failing a successful electronic identity verification (or the risk assessment concludes that an electronic identity verification will not be a sufficient check), alternate ‘paper’ methods can be used, e.g. requesting the client sends in (via fax/email/post) certified copies of Passport, Drivers Licence etc.Regards,Nick BoudrieSeptember 27, 2011 at 11:52 pm #3064