Customer due diligence (KYC) on every customer
Identify and verify every customer (and beneficial owner) before providing a designated service.
Who must comply
All AUSTRAC reporting entities.
What triggers it
Onboarding a customer for a designated service.
When due
Before providing the designated service. Ongoing for customer relationships.
Evidence required
KYC records (identity documents, beneficial ownership), PEP/sanctions screening evidence, EDD documentation.
Max penalty
Each unverified customer can be a separate breach — up to $33M per contravention
Summary
Reporting entities must collect and verify customer identification information before providing a designated service. For non-individuals, beneficial owners (≥25% control or ownership) must be identified. Enhanced due diligence applies to high-risk customers including PEPs, complex structures, and high-risk jurisdictions. Simplified due diligence is available for limited low-risk categories.
Enforced by
Source legislation
Topics
Source: https://austrac.gov.au/business/core-guidance/customer-identification-and-verification. Rules Mate is not a law firm. Always verify against the live regulator source before acting.