The ACCC has revealed that Australians lose millions of dollars each year to identity fraud.
When selling and purchasing property in Victoria, legal practitioners and conveyancers are required to take reasonable steps to verify the identity of their clients. The ARNECC Model Participation Rules aim to provide a structured process for client identity checks with an aim to minimise the risk of fraud occurring in property transactions and to protect all parties involved.
What is the standard Verification of Identity (“VOI”) procedure?
In most cases, a VOI is conducted in person either at your solicitor’s office or at your local Australia Post office.
When conducting your identity check, Schedule 8 of the ARNECC Model Participation Rules provides that verifiers should undertake the following steps:
- Conduct a review of original identity documents (100 points of identity required);
- Complete a face-to-face interview with the client; and
- Be satisfied of the reasonable likeness between the person being identified and the photos in the identity documents.
Once a solicitor has completed the above steps, they may sign off on your Settlement or complete your lodgement.
What if I cannot complete my VOI in person?
If you cannot attend your solicitor’s office or your local Australia Post, you can complete your VOI remotely.
Remote VOI allows you to securely upload photos of the required identity documents and to record a short video reading a code. The video will be assessed using facial recognition software and the information contained within documents will be compared to government records.
How to identify identity overseas?
If you are overseas, your solicitor must determine appropriate steps for verifying your identity. One option is to use the services of an Australian Embassy, High Commission, or Consulate, along with any additional measures necessary to ensure reasonable confidence in the individual's identity. The detailed process for this is outlined in the Appendix to this Guidance Note. Alternatively, international financial institutions or law practices may utilize their overseas personnel for identity verification.At Burke Lawyers, we promote the use of this new technology if you are unable to complete a face-to-face interview, as it is important to our firm to make the VOI process faster and easier for clients, whilst also reducing the risk of identity fraud.
If you need assistance with any conveyancing or property matter, contact Kristy Muhlhan,or any of our property lawyers on or +61 3 9822 8588 or email HERE.
