Where someone signs or acts on another person's behalf — under a power of attorney, as an executor of an estate, or as a guardian — you need to verify the person exercising that authority, and record the arrangement on the case.
Which client type do I choose?
This will depend on the role that the person holds. In some cases it may be a Family Trust, a Company or even just an Individual.
Who needs to be verified?
You can determine whether an individual is acting on behalf of another person from:
the way they engage with your services – such as seeking the service in the name of another person and not their own name
customer onboarding processes – through which you can ask whether the individual is acting on behalf of another person or will have a person act on their behalf.
If an individual is interacting with you on behalf of another person, the person they're representing is the customer. You must identify who the customer is and can use the practical guides AUSTRAC has provided depending on if they’re a:
If the customer tells you that they’ll interact with you through another person, you must establish both:
the identity of the representative – this process will differ depending on whether they're an individual, body corporate, unincorporated association, partnership, trust, sole trader or government body
their authority to act as a representative for the customer – including collecting information about the nature of their authority to act for the customer. This could include being appointed under an agency agreement, power of attorney or employed with appropriate authority to act as a representative.
You could also collect information on the reason for granting the authority to act. For example, in the context of real estate purchases, a representative may provide that they've been hired under an agency agreement to help broker the purchase of property.
What do I enter for ownership percentage?
This will depend on the type of client. For individuals, ownership percentage is not required. For company's anyone over 25% beneficial owner should still be verified. Check with the client to understand who the beneficiaries are if it is unclear.
How do I answer the third-party risk assessment question?
The risk assessment asks whether a third party is acting on the customer's behalf as their representative. If you have confirmed that there is a Buyer's Agent, or Power of Attorney or Executor, for example, then you will select 'Yes' to this question.
Supporting documents
Upload the power of attorney instrument, grant of probate or letters of administration during the documentation collection step so the authority forms part of your record.
This article provides general guidance only and is not legal advice.
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