AML/CTF Update

On 12 December 2007 lenders will be required to adopt the new AML/CTF Act procedures for customer identification.

The good news is that after much work the MFAA has obtained in principle agreement from many leading lenders to:

• uniform UCCC training for finance brokers and other intermediaries

• standard risk allocation

• standard customer identification procedures.

This initiative has led to the creation of the MFAA Standards. The standards contemplate that mortgage loans to Australian residents will usually be considered low risk.

Identification of customers comprises two stages:

1. collection of customer information

2. verification of that information.

The identification of individual customers will usually be achieved by a face to face interview verifying the identity from passports, drivers licences, or other state or territory officially issued photographic identification cards.

Gadens Lawyers have prepared a pro-forma identification checklist which will act as a broker's checklist for lenders using the Gadens AML/CTF Compliance Program. Click Here to view the checklist.

For more information, please contact:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.