Knowledgebase

Individuals, Overseas Individuals and Sole Traders

Individuals, Overseas Individuals and Sole Traders

Individuals

When Customer Due Diligence or Know your Customer is being conducted, identity verification is at the forefront of this process. Identity verification is a safety net measure that ensures the person being verified proves to be who he or she details themselves to be. This creates a prevention process that mitigates the risk of fraud and the use of false identities.

First AML uses a third party identity verification software that cross references ID documents and Address credentials against databases such as LINZ, Centrix, White Pages and Companies Office. This is a flexible electronic identity verification tool that allows us to verify the identity of your customer in seconds using biometric checks, bank account details, MRZ checks, Australian and New Zealand government data sources and global watchlists. This system is a key component to our service by electronically verifying the identity of new customers being onboarded by our clients.

Key requirements for an individual to be Electronically Identity Verified (EIV):

  • Full name
  • Date of Birth
  • Residential Address
  • ID Documents:
    • Front and Back of Driver’s Licence OR;
    • Passport
    • Proof of Address document (if current address is unregistered)


All the above credentials are cross reference checked and an EIV Report is created that showcases key particulars that lets us know if the individuals has ‘passed’ or ‘failed’ the Electronically Identity Verification. Please note that this system is only able to verify individuals with New Zealand or Australian identity documents.

Overseas Individuals

Overseas individuals have an entirely different process when it comes to their verification process. Certified copies of identity documents and proof of address documents are copies that have been stamped or endorsed by a lawyer, chartered accountant or Justice of the Peace (to name a few examples) who can confirm that the copy is a true copy of the original document. We collect Certified ID and Address documents for individuals who do not hold NZ or Australian identification. This is because our Identity Verification Software does not have the capability to verify foreign identity documents. And so we collect certified documents in order to verify overseas indivdiuals. It is within the legislation that the certifications are dated and are no older than three months since the issuance date.

There are two types of ID documents that are accepted within the Identity Verification Requirement – being Primary and Secondary types of ID documentation:

Primary Identity Documentation:

  • Certified Passport
  • Certified National ID Card
  • Certified Firearms Licence


Secondary Identity Documentation:

  • Certified Drivers Licence – these must be accompanied by the following:
    • Recent Bank Statements (no more than 3 months old)
    • Birth Certificate
    • A copy of the front and back of the individuals bank card


A Certified Address document must accompany the above primary and secondary certified identity documents.

Sole Traders

The definition of a sole trader is a person trading on their own and is not incorporated. As such, the individual needs to be verified as well as a few extra pieces of information.

Extra Key Requirements:

  • Business/trading name (if any)
  • Business OR residential address
  • NZBN number
  • The Proprietor’s verification and authorised acting on behalf documentation if applicable


The process is fairly similar to that of verifying an individual, and so the EIV is still at the forefront of the AML process.

Verification of New Customers

Across the board, the main aspect of AML process is the verification of who the reporting entity is actually doing business with. Therefore EIV’s and biometric verification of new customers has become a key part of onboarding requirements. These verifications can be headache inducing, especially when you add the stress of staying compliant to the everchanging legislation. Let First AML take care of the entire CDD/KYC process for you, we can verify an individual in minutes, allowing you to get back to business and onboard your new customer smoothly. Get in touch now to learn more about how First AML can be an asset to your team.

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