Verifying Client Identities

The Anti-Money Laundering and Countering Financing of Terrorism Act (2009) requires many professional services providers (or 'reporting entities', including lawyers & accountants) to obtain and verify identity information on their clients, as well as the beneficial owners of their clients and anyone authorised to act on their client's behalf. 

Connectworks provides a three-step process for identity verification:

  1. Record identity information in a person’s Connectworks profile
  2. Gather evidence confirming the veracity of that information
  3. Make a determination that the identity information belongs to the person claiming it

This article explains where and how to perform this client due diligence (CDD) process in Connectworks.

 

Contents

1. Recording Identity Information

2. Types of Identity Evidence

3. Collecting Identity Evidence

4. Electronic Identity Verification in Connectworks

5. Matching Identity Evidence to Identity Information

6. Making an Identity Determination

7. Reusing Identity Determinations

 

1. Recording Identity Information

In most cases, the AML/CFT Act requires reporting entities to obtain the name, date of birth, and address, of each person requiring CDD in relation to a client. In Connectworks, this information is stored in the person's Contact Profile, and can be accessed from the Firm Contacts list via the edit profile function.

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2. Types of Identity Evidence

Connectworks supports two ways of verifying the validity of identity information:

  • Via documentary evidence. Verification via documentary evidence requires you to view or obtain identity documents that contain the identity information being verified. These identity documents can include a driver licence, passport, or utility bill, and can be obtained either face-to-face or via certified copy.
  • Via electronic evidence. Verification via electronic evidence uses electronic records containing authenticated identity information as evidence that any obtained identity information that matches those records is legitimate. Electronic records must be independent and reliable: they include government and retail databases.

 

3. Collecting Identity Evidence

Identity evidence is collected in the Identity Information section of the Contact Profile. Please note that, before collecting identity information for a contact, you should take care to merge any duplicate contact profiles.

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4. Electronic Identity Verification in Connectworks

Connectworks is integrated with Centrix SmartID, a third-party provider of electronic identity verification services.

Centrix compares the identity information you supply with records stored in independent and reliable electronic databases, including DIA and NZTA databases for passport and driver licence verifications; many bank, finance, and utility company databases for proof of address, name and date of birth; and the full international Thomson Reuters PEP and sanctions databases.

To use Centrix SmartID services in Connectworks, please refer to Centrix SmartID (Electronic Identity Verification).

5. Matching Identity Evidence to Identity Information

Each type of identity evidence matches to two or more pieces of identity information. For example, a driver licence matches to name and date of birth information, whereas a utility bill matches to name and address information. When identity evidence is recorded, Connectworks displays ticks against the pieces of identity information it relates to.

 

6. Making an Identity Determination

The final step in the identity verification process is to confirm that the identity has been verified. 

Once all required identity evidence has been collected, select the action to Make Determination

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7. Reusing Identity Determinations

When a person's identity is determined to be verified, the determination record attaches to the person's Connectworks profile. When a person's profile is accessed via the Client Due Diligence workflow, any existing identity determination records can be reused, meaning you only have to go through the verification process once.