Client identification requirements

By February 15, 2018Financial Planning

We seem to always be asking our clients for current identification, such as Drivers Licence or Passport.

It is a requirement under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 that we check a client’s identity before providing services.

We fully understand and agree that measures should be in place to ensure that criminal activity can be identified. However, we also wonder at times whether there is an element of overkill in the requirements.

For example, if we have identified you using your Drivers Licence 10 years ago, but now need to place a new investment on your behalf, why do we need to produce your current Drivers Licence? Strangely, no one in authority has ever been able to explain or justify the reasoning. Currently, a local Federal MP is making enquiries in this regard on our behalf and we appreciate his representations.

If you find the process frustrating, as we do, why not approach your local MP and ask if this requirement can in some way be relaxed?  We have noticed over the years that our clients hardly ever change identities!