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Identity Verification Code of Practice

 
131201 Identity verification code of practice AML CFT
This provides a suggested best practice for all reporting entities conducting name and date of birth identity verification on customers (that are natural persons) they have assessed to be low to medium risk.

Complying with a code of practice is not mandatory, although it constitutes a safe harbour. If a reporting entity fully complies with the code it is deemed to be compliant with the relevant parts of the Act. If a reporting entity opts out of the code, it must inform its supervisor and must adopt practices that are equally effective, otherwise it risks non-compliance.
Previous Versions

Key changes to the Code of Practice 2013 include:

Part 1: Documentary Identity Verification

  •  Adjustment to the national identity card information to recognise some countries don’t use signatures but may use other biometric measures

Part 2: Document Certification

  •  Inclusion of international certification requirements
  •  Clarification that a trusted referee cannot be a person involved in the actual business/financial transaction requiring the certification

Part 3: Electronic Identity Verification

  •  Inclusion of a description of electronic identity and the subsequent verification
  •  Inclusion of the ability to rely on a single independent electronic source of verification when that source establishes a high level of confidence
  •  Removal of reference to address as identity verification. NB. This does not detract from the use of address as a key element of customer due diligence.

Complying with a code of practice is not mandatory, although it constitutes a safe harbour. If a reporting entity fully complies with the Code it is deemed to be compliant with the relevant parts of the AML/CFT Act. If a reporting entity opts out of the Code, it must inform its supervisor and must adopt practices that are equally effective, otherwise it risks non-compliance.