Customer identification, verification, and ongoing due diligence requirements
Customer Due Diligence is the process of identifying and verifying your customers to understand who they are, what they do, and the source of their funds. CDD must be completed before providing designated services.
For individuals, you must collect and verify: full name, date of birth, and residential address. Verification requires reliable and independent documents, such as a driver licence, passport, or government-issued ID card.
For companies, you must verify: full company name, registered office address, principal place of business, ACN or ARBN (if applicable), and the company type. Use ASIC searches, certificates of registration, or other official documents.
You must identify and verify beneficial owners — the natural persons who ultimately own or control the customer. For companies, this means individuals who own 25% or more, or who exercise control. Beneficial ownership is where criminals often hide.
Enhanced Due Diligence is required for politically exposed persons (PEPs), customers from high-risk countries, complex corporate structures, or unusual transaction patterns. This may include additional identity documents, source of wealth verification, and more frequent monitoring.
CDD is not a one-off exercise. You must conduct ongoing monitoring to ensure customer information remains current and to detect unusual or suspicious activity. Review customer information periodically and when circumstances change.
You can and should refuse to provide services if: the customer refuses to provide required identification, you cannot verify their identity, you suspect money laundering or terrorism financing, or the customer asks you to do something illegal (like not reporting a transaction).
Complete the quiz to earn your certificate. You need at least 80% to pass.