<aside> 🚔 The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF Act) is an unavoidable piece of legislation that requires us to “identify” all customers.

Each financier has a different interpretation of the legislation. For the most part, the processes are the same, but please be aware that there are slight differences in how they all do thing

The one thing we will always need to do is “Know Your Customer”.

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In commercial, “Knowing Your Customer” means we need to:

Identify anyone who controls >25% of the borrowing entity

Individuals

• As a first option, most banks will use Equifax’s ID Matrix software to verify a customer’s identity.
  • This usually has a 95% success rate.
  • Learn more about ID matrix https://www.equifax.com.au/idmatrix/
• If the ID Matrix check fails, we will need a certified ID.
  • Many people can certify a document including, but not limited to, Justice of the Peace, Pharmacist, Police Officer, Postal Worker, Doctor & Lawyer.

Companies

• The above process for individuals will need to be completed for:
  • Directors.
  • Shareholders who own >25%.

Trusts

• Trusts, by design, are secretive.
• Therefore if an applicant entity is a trust, we will need the Trust Deed to establish who are the ultimate “controllers” of the entity.
• The above process for individuals will need to be completed for the controllers of a trust, for the most part, these are:
  • Appointers.
  • Beneficiaries.
  • Unit holders.
• For the vast majority of applications, these people are the same as the directors of the company.
• On rare instances this can be a complete third party. In this instance, we may need to identify someone who you have never heard of before.