Onboarding
Understanding compliance requirements for financial transactions.
Overview
Know your Client (KYC)/Customer Due Diligence (CDD) requirements of the Anti-Money Laundering & Countering Financing of Terrorism Act 2009 (the "AML/CFT" law) are now a fact of life in the finance & legal world – experienced mainly through dealings with banks, lawyers, accountants, and real estate agents.
Whilst at present FAR Corporate is not necessarily required to gather onboarding information – almost everyone we deal with (banks, other funders, lawyers, accountants, real estate agents) is required to gather that information. So as standard practice we gather information to meet their AML/CFT requirements, so that we can provide it as requested to those 3rd parties who need to have it.
Frequently the party requiring the information may also elect or be required to verify the information directly from prospective and existing clients, primarily concerning the nature of their activities and the source of wealth as part of "customer due diligence" (CDD).
Required Information
For parties requiring CDD information the need is to obtain from you and verify certain information including:
- your full name; and
- your date of birth; and
- your address.
In practice this amounts to you supplying:
- a certified copy of the signing page of your passport, and/or both sides of your driver's licence
- a utility or other suitable statement that shows your address.
- A copy of a bank statement in your name or your firm's name
- COI for companies and/or trust deed and any amendments re trusts
- As necessary, source of funds material such as accounts &/or other financial material
If you are seeing us about raising debt or equity assume we will need the above information as well as more detailed information about your companies or trusts including:
- the people associated with it (such as directors and shareholders, trustees, and beneficiaries).
- Details of ultimate beneficiaries
- In some cases, further information, such as the nature and purpose of the proposed work you are asking us to do for you and application of the funds.
Important Notes
If we are not able to obtain the required information from you, we may not be able to act for you. We may require this information from you even though we have been acting for you for many years &/or if you have previously supplied some or all of it.
Ultimately, the law requires most of our counterparties in a transaction to obtain this information – so better we get this sorted with you upfront.
Whilst more information may be required, it will save time if at the start of any transaction you can provide a recent (within 3 months) certified copy of your passport and a utility bill. If you do not have a passport or utility bill, there are other documents that can be used to establish your identity, and we invite you to contact us in that case.
The Process
Initial Documentation
At the beginning of our relationship, we'll ask you to provide the basic identification documents listed above. This helps establish your identity and address.
Additional Information
Depending on the nature of your transaction, we may request additional information about your business structure, source of funds, or the purpose of the transaction.
Information Sharing
We securely share this information with relevant third parties (banks, lawyers, etc.) as required for your transaction. This helps streamline the process and prevents you from having to provide the same information multiple times.
Ongoing Updates
Periodically, we may need to update your information to ensure it remains current. This is typically required every few years or when there are significant changes to your circumstances.
Frequently Asked Questions
Why do you need all this information?
While FAR Corporate may not be directly required to collect this information, our partners (banks, lawyers, etc.) are legally obligated to do so under the AML/CFT law. By collecting it upfront, we streamline the process for you.
How is my information protected?
We take data security very seriously. Your information is stored securely and only shared with authorized third parties as required for your transactions. We comply with all relevant privacy laws and regulations.
What if I don't have some of the required documents?
If you don't have a passport or utility bill, alternative documents can be used. Please contact us to discuss your specific situation, and we'll work with you to find acceptable alternatives.
How often do I need to update my information?
Generally, we recommend updating your information every 2-3 years or whenever there are significant changes to your circumstances (e.g., change of address, company structure, etc.).
Have questions about compliance requirements?
Contact us today to discuss your specific situation and how we can help streamline the process.