By Bianca Venten

4 December 2020

The Anti-Money Laundering (AML) and Know Your Customer (KYC) laws were amended globally in 2019. You can no longer simply copy and paste your 2018-2019 strategy and apply it to 2020, as you may have done in previous years.

The changes apply to any business receiving funds from customers that are not already known to them. This includes customers of online services and applications. Essentially, steps must be taken to verify any new customers. The requirements apply to both one-off transactions and ongoing business relationships.

 

The identity information to be collected under the new regime is different if the customer is an individual compared to if the customer is an entity. Individuals must provide, at a minimum, their full name, residential address and date of birth. This must all be proven with an IP card, passport or driver’s licence. Customers needs to take a photo to verify their photo on their ID document (and there are further rules surrounding how the photo is to be taken, the quality, and the procedure for uploading a photo).

 

A company search must be conducted to verify any customers that are entities, to confirm the company/business is registered. There are also certain requirements around verifying the identity of the beneficial owners of the company/business.

 

Businesses need to be satisfied that the customer is either the individual that they claim to be, or if not an individual, it is a real entity of which the beneficial owners have been adequately verified.

 

Businesses must ensure that they are complying with the new regime and are able to prove record of the steps that were undertaken to identify the customer, in the event of being audited.

 

Should you wish to understand more about the new regime or whether your business is currently complying, please contact Bianca Venten of our firm, or any other member of the Commercial Law Team.

Related Articles

View All
Leasing & Lease Disputes / Real Estate Agents / Commercial Law

COVID-19 – Commercial Tenancy Relief Scheme to be extended (again)

The CTRS was initially expected to end on 29 September 2020 under the COVID-19 Omnibus (Emergency Measures)(Commercial...
Read More
Retail Clients & Chains / Commercial Law

A win for the Tigers on the field and in the Court of Appeal

On 16 October 2020 the Court of Appeal confirmed that a ‘retail premises lease’ will remain subject to the Retail...
Read More
Commercial Law / Leasing & Lease Disputes

COVID-19 Lease Variations- How to document it properly

We have written several blogs about commercial leases and licences and the impact COVID-19 has had on them and what the...
Read More
Commercial Law / Commercial Contracts & Agreements / Corporate Advisory and M&A

Announcing our Promotions

Rob joined us in 2017 and immediately impressed us with his litigation skills and incredible work ethic It’s no...
Read More
Commercial Contracts & Agreements / Commercial Law

When contracts end: The perils of miscommunication and misunderstanding

From a practical perspective, the most critical thing for any party to a contract to appreciate is the importance of...
Read More
Commercial Law / Mortgages, Loans & Finance / Mezzanine Finance

Private lending: the red flags

Today, it may appear amicable and you do not foresee anything going wrong after the money is advanced Surely, it’s...
Read More
Commercial Law / Commercial Contracts & Agreements / Corporate Advisory and M&A

Negotiating Indemnities: Some Practical Tips

An appropriate indemnity can provide a valuable mechanism for risk allocation between parties to commercial dealings...
Read More
Commercial Law / Property & Development / Developments

TLFC Law Triple Finalists in the Lawyers Weekly Australian Law Awards 2019

Celebrating its 19th year, the Australian Law Awards, in partnership with UNSW Law, is the pinnacle of award programs...
Read More
Commercial Law / Franchising & Licensing / Real Estate Agents

Thinking of buying or selling a Rent Roll?

However, rent rolls are regulated by the Estate Agent’s Act and it is important that the contract to buy or sell the...
Read More
Information Technology & Innovation / Developments / Commercial Law

Cyber Security and Protection from Cyber Fraud

Email communication is an inherent part of modern day business It is not uncommon to run an entire transaction online,...
Read More
Employment Law / Commercial Law / Litigation & Dispute Resolution

What employers need to know when letting someone go

A staff member may need to be let go because the business can no longer afford them, or perhaps they are just not...
Read More