The Financial Advice Association Australia SafeID is a digital client identification tool that will transform the way advisers identify and verify their clients for anti-money laundering (AML) and counter-terrorism (CTF) purposes.
Sarah Abood, FAAA CEO, said advisers experience a lot of challenges and frustration with client identification and SafeID was created as a comprehensive solution to simplify client identification and verification.
“When a client is verified by an adviser using SafeID, they can be confident that their ID and personal data is protected and identity checks will be managed in line with AUSTRAC requirements,” Abood said.
Abood said using SafeID will allow advisers to identify and verify clients face-to-face or remotely using a secure link and that electronic verification will require only minimal details which are checked against a range of digital databases.
Furthermore, she said, the risk of identity theft is reduced and there is no need to save copies of ID for electronic verification. If copies of ID are required for manual verification, they can be saved in the secure platform.
“The SafeID platform guides advisers to manage other AUSTRAC requirements such as AML/CTF risk assessment and record-keeping in a secure and auditable environment,” Abood added.
“Advisers can conduct PEP, sanctions and other checks and record the details of any enhanced due diligence measures taken to manage risk.”
Abood acknowledged one challenge in the uptake of the new technology will be product provider acceptance as they often rely on advisers to conduct client identification and verification using their own systems.
“For example, currently some providers require certified copies of client ID, often requested as pdf attachments to email,” she said.
“This practice is both unnecessary and potentially unsafe for clients. AUSTRAC has been very clear that it does not require advisers to retain copies of client identity documents themselves. Rather they must keep a record of what steps were taken to identify the client.”
She added that the FAAA is in ongoing discussions with the Financial Services Council, with whom the FAAA jointly developed the AML/CTF forms that have been used by advisers for the better part of two decades.
“We are calling on product providers to step up and accept a safer, digital solution where advisers can provide evidence of verification undertaken while safeguarding client privacy,” she said.
