To meet responsible lending requirements, Connective Credit Representatives are required to obtain and verify the following supporting documents for all consumer asset finance and personal loan applications.
In this article you will find information on:
Identification
Under the Anti-Money Laundering and Counter Terrorism Financing Act, there must be customer identification procedures in place to know your customers. The AML CTF rules set out the minimum information that must be collected and verified. Ensure you are collecting sufficient documentation for all applicants to satisfy the AML CTF requirements as established by the lender.
Which documents can be used for identity verification?
At least One (1) Item from Part A OR
At least One (1) Item from Part B + One (1) from Part C (refer below):
Part A: Primary photographic
A current Drivers Licence
A current Australian Passport (or one which has expired within the last two years)
A current Proof of Age Card issued by an Australian State/Territory (including 18+ Cards)
A current foreign passport or similar travel document, a national identity card also containing your signature issued by a government, the UN or an agency of the UN.
Part B: Primary non-photographic
An Australian birth certificate/extract
A citizenship certificate
A foreign birth certificate issued by a foreign government, the UN, or an agency of the UN
A current Centrelink Pension Card
Part C: Secondary
Current Medicare Card
Current Credit/Debit ATM Card (issued by an Australian Financial Institution)
Other Financial Institution records issued within the last 3 months (e.g. Bank Statement, Passbook, Term Deposit Certificate)
Current Tertiary Education Identity Card with Photo (e.g. Student Card)
Current Government Issued Identity Card with a Photo
A notice issued by the Australian Taxation Office within the last twelve months recording a debt payable to or by you under a Commonwealth taxation law (e.g. ATO Notice of Assessment)
A notice issued by a local Australian Government Entity or utility provider within the last three months recording the provision of services to you at your residential address (e.g. Rates Notice, Gas, Electricity, Phone)
A citizenship certificate
Other considerations when verifying your client’s identity:
* All identity documents provided should have matching names. Where there are discrepancies between names, lenders will require additional documentation, such as a marriage certificate or change of name certificate, to explain the discrepancy.
*Only current ('in date') identification is acceptable unless otherwise indicated.
*Refer to lender policy for more information.
Income Verification
PAYG Income | Full-time/part-time/Casual
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Self-employed |
PLUS, one of the following:
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Other Income types
Superannuation: Copy of superannuation statement and confirmation of superannuation balance
Government payments: Confirmation from Centrelink (examples: pension, family tax benefits, disability payments and Department of Veterans Affairs)
Maintenance: Copy of Child Support Agency agreement and three months bank account statements verifying income
Self-funded retirees: Latest 1 year tax return and ATO Notice of Assessment
Rental income: 3 months of recent transaction statements showing continuous rental credits OR Copy of tenancy agreement OR real estate agent tax invoice OR prospective rental obtained from a full valuation OR Individual Tax Return
Foreign income: two recent payslips and letter from the employer – must be in the language of the country from which has originated and a translated copy from a certified NAATI translator
If your customers do not meet any of the income types specified above, please contact the Compliance team for further guidance.
Living Expenses
It is recommended as best practice to obtain the latest three months of transaction account statements for all applicants to verify living expenses for all applicants, regardless of their employment status.
*Refer to our Client Living Expenses eBook for more information.
Loan Purpose
Asset Purchase |
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Personal Loan/Debt Consolidation |
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These are mandatory documents, however, you should obtain all documents required to verify a client’s individual financial situation and any additional documents required by the lenders.