Supervision Guideline – No. 4. Identification check for the purposes of fraud prevention

Supervision guidelineFurther clarification
4.1.A principal licensee must prepare and maintain written procedures for the verification of the identity of a party with whom it is proposed to enter an agency agreement  There must be written polices and procedures on the process of checking and verifying the client – landlord or vendor
4.2. Without limiting clause 4.1, the written procedures must provide for the following:
4.2.1. a process to verify that the identity of a person entering an agency agreement is the owner of the property that is subject to the agreement or, the person has the legal right to act on behalf of the owner,
4.2.2. if applicable, in the case of a person who has the legal right to act on behalf of the owner — where that person is not listed on the certificate of title, the original or a certified copy of the document which confers the power of sale or management on that person must be sighted, and a copy of the document must be retained,
4.2.3. if applicable, where there is no mortgagee listed on the certificate of title, written confirmation of the power of sale or management is sought from all registered owners listed on the title,
4.2.4. where it is not possible to comply with clause 4.2.3, a reasonable attempt must be made to verify the power of sale or management with the registered owner of the property and a record retained of each attempt,
4.2.5. a record must be kept of all documentation relied upon to verify an individual’s identity,
4.2.6. the confirmation of identity check must meet all provisions of clause 4.3 of the supervision guidelines.
The written procedures must include processes for the following:
– Identifying the client [landlord or vendor]
– If a person acting on behalf of the client – there must written authority provided authorising the person to act on behalf of the client [e.g., power of attorney]
– If no mortgage on the property for sale a copy of the registered owners title must be provided or written authority from all owners of the property to sell or lease
– If for some reason title is not available – evidence of search must be provided [however, if this case legal advice should be sought]
– Agent/Agency must keep a record of the documentation collected to verify the identity
– The documentation collected must reflect the options as listed in 4.3, below  
4.3. In verifying the identity of a person, a licensee must sight an original or certified copy of:
4.3.1. a primary proof of identity document,
4.3.2. two secondary proof of identity documents, and
4.3.3. a document providing proof of legal ownership of the property.
4.3.4. in the case of the sale of a business, only 4.3.1 and 4.3.2 apply.

4.4. For the purposes of clause 4.3, a primary proof of identity document is:
4.4.1. a current Australian driver’s licence, or
4.4.2. a current photo card issued by a State or Territory Government agency, or
4.4.3. a current Australian passport, or
4.4.4. a current non-Australian passport.

4.5. For the purposes of clause 4.3, a secondary proof of identity document is:
4.5.1. a current Medicare card, or
4.5.2. a current credit card, or
4.5.3. a current passbook or an account statement from a bank, building society or credit union up to one year old, or
4.5.4. an electoral enrolment card or evidence of enrolment not more than two years old, or
4.5.5. a gas, electricity or council rates bill up to one year old, or
4.5.6. a water rates notice up to one year old.

4.6. For the purposes of clause 4.3, a document that is proof of legal ownership of the property is:
4.6.1. the certificate of title for the property, or
4.6.2. a current council rates notice up to one year old, or
4.6.3. a land valuation notice up to one year old, or
4.6.4. a National Vendor Declaration concerning the relevant livestock.
The agent must either sight an original of the following or be provided with a certified copy.
– primary proof of identity document
— a current Australian driver’s licence, or
— a current photo card issued by a State or Territory Government agency, or
— a current Australian passport, or
— a current non-Australian passport

– two secondary proof of identity documents
— a current Medicare card, or
— a current credit card, or
— a current passbook or an account statement from a bank, building
— society or credit union up to one year old, or
— an electoral enrolment card or evidence of enrolment not more than two years old, or
— a gas, electricity or council rates bill up to one year old, or
— a water rates notice up to one year old.

– a document providing proof of legal ownership of the property
— the certificate of title for the property, or
— a current council rates notice up to one year old, or
— a land valuation notice up to one year old, or
— a National Vendor Declaration concerning the relevant livestock.

if the transaction relates to a ‘business’ – only the following apply:
– primary proof of identity document
– two secondary proof of identity documents  
4.7. In verifying a proof of identity document, a licensee must ensure:
4.7.1. the documents are legible and appear not to have been altered in any way, and
4.7.2. there is no discrepancy between the information collected by a licensee and the information contained in the documents, other than a discrepancy that can be explained and supported with evidence, and
4.7.3. the photograph contained in photographic identification documents is a true likeness to the person whose identity is being verified  
The documents used to verify the identity/ies of the client/s, must be:
– legible and appear not to have been altered in any way
– no discrepancy between the information collected by a licensee and the information contained in the documents
– photograph contained in photographic identification documents is a true likeness to the person
  • For more tips on Fraud prevention – refer: here
  • Article on recent tenancy bond fraud scam in WA – refer: here