LANGES SA Verification of Identity 131204

8/13/2019 LANGES SA Verification of Identity 131204

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LANGES_112321_018.doc

4.2 Certificate(s) on documentEach relevant document must include a certification (or certifications) to the effect thatreasonable steps have been taken to verify the identity of each relevant party (see paragraph9 below)

4.3 Retention of documentsCopies of identification documents relied upon must be obtained and retained for 7 years.While it is not a requirement of the policy (except in relation to verifications by agents), the

author suggests that it would be good practice for the person who undertakes a verificationof identity to complete a certification document in a form similar to the Agent Certificationset out in Appendix D to the Policy and for that document to be retained as well.

5. Who must be identified?The parties who must be identified under the Policy are:

Mortgages all mortgagors; Transfers - all parties; Transmission Applications all executors/administrators; Applications to Register Death by Survivor all survivors; Applications for Substitute Certificates of Title - the registered proprietor, and the applicant

unless the applicant is a mortgagee.

6. What are reasonable steps to verify identity?There is a VOI Standard set out in the Policy (clause 7). Lawyers, conveyancers and mortgagorsare not requiredto comply with this Standard they may decide that other procedures (eg their

AML/CTF procedures) constitute taking reasonable steps. However, if a problem arises theyll havethe onus ofprovingthat the steps they took were reasonable, whereas if they comply with the

Standard theyll be deemed to have taken reasonable steps ie the Standard provides a safeharbour procedure.

7. The safe harbour Standard verification requirements for lawyers, conveyancers andmortgagees

7.1 Individuals executing documents on their own behalf(a) There must be a face to face interview between the person doing the verification and

the person being identified. Ordinarily this would be done at the same time as therelevant document is executed, although this is not compulsory (the identification mustbe done at the same time as, or before, the document is executed see clause 4.1 of

the Policy). .

(b) The person doing the verification can be the lawyer or conveyancer acting for theparty being identified, the mortgagee (in the case of a mortgage), or their agent (see


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paragraph 8 below). Mortgagees should decide which of their staff members areauthorised to (a) undertake verifications of identity and (b) execute certificates as toverification on LTO documents.

(c) The person doing the verification must examine original and current identificationdocuments, be satisfied that theyre authentic, and be satisfied that the person beingidentified bears a reasonable likeness to the person depicted in any photographs in theidentification documents .

(d) Copies of the identification documents must be taken and retained for 7 years.(e) The identification documents on which the person doing the verification may rely are

divided into 5 categories (see Appendix B to the Policy), the first 4 for persons who areAustralian citizens or residents and the 5thfor persons who arent. The person doingthe verification should rely upon the highest category of documents which the personbeing identified is able to produce.

(f) If only category 4 documents are available, they must include an IdentifierDeclaration which is a statutory declaration by someone (the Declarant) who hasknown the person being identified for at least 12 months. The statutory declarationmust comply with clause 7.3 of the Policy). In such cases the person doing theverification must meet with both the person being identified and the Declarant at thesame time, and the person doing the verification must also identify the Declarant inaccordance with the Standard.

7.2 Individuals executing documents as attorneysThe person doing the verification must identify each attorney using the process set out above(para 7.1) and:

(a) Confirm the details of the donor and the attorney from the Power of Attorney; and(b) Take reasonable steps to establish that the transaction is authorised by the Power of

Attorney.

7.3 Bodies corporate executing documentsThe person doing the verification must identify each individual signing on behalf of the bodycorporate using the process set out above (para 7.1) and:

(a) Confirm the existence and identity of the body corporate by conducting a search; and(b) Take reasonable steps to establish who is authorised to sign the document on behalf

of the body corporate.

7.4 Bodies corporate executing documents as attorneysThe person doing the verification must do what is set out in para 7.3 above and:

(a) Confirm the details of the donor and the attorney from the Power of Attorney; and(b) Take reasonable steps to establish that the transaction is authorised by the Power of

Attorney.


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7.5 Individuals executing documents in foreign countriesVerification must be undertaken by an Australian Consular Official, an Australian DiplomaticOfficer or, if the person is a member of the Australian Defence Force, a competent officer asdefined in the Defence Force Regulations see clause 7.9 of the Standard.

8. Use of agents, to undertake verifications, by lawyers, conveyancers and mortgagees8.1 A lawyer, conveyancer or mortgagee may engage an agent to undertake a verification of

identity on their behalf, provided that the following conditions are satisfied:

(a) They must reasonably believe that the agent is reputable and competent;(b) The agent must have professional indemnity and Fidelity insurance each for amount of

the leased $1.5 million per claim, be a legal practitioner or conveyancer, orbe an ADI;

(c) They must direct the agent to conduct the verification of identity in accordance withthe Policy; and

(d) They must receive from the agent copies of all identification documents relied on bythe agent signed, dated and endorsed as true copies together with and AgentCertification in the form set out in Appendix D to the Policy.

8.2 Lawyers, conveyancers and mortgagees can enter into arrangements with Australia Postpursuant to which Australia Post can carry out identity verifications on their behalf at

Australia Post outlets see https://auspost.com.au/forms/land-title.html. Australia Postcharges $39 per verification at the time the verification is done.

9. The certificate on relevant LTO documents9.1 A certificate by a lawyer or conveyancer should be in the following form:

I, [full name] have taken reasonable steps to verify the identity of [insert [all] transferor(s),transferee(s) mortgagor(s), etc, as applicable].

Signature:.

Full name:.

Capacity:

9.2 The certificate by a mortgagee should be in the following form:[Full name of mortgagee] has taken reasonable steps to verify the identity of [insert [the]mortgagor or[all] mortgagors, as applicable].

Signature:.

Full name:.

Capacity:


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9.3 The LTO has not yet included these certificates in its approved forms. The time being, theycan be typed in on the face of the document cornerback sheet or on a B1 Annexure form.

10. Self-represented partiesThere are special provisions for self-represented parties who execute relevant documents otherthan mortgages see clause 5 of the Policy.

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More information: www.langes.com.au

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LANGES SA Verification of Identity 131204