Find out why you might be asked for ID when you open an account, buy a house or do certain transactions.
We regulate businesses to combat money laundering, terrorism financing and proliferation financing. As part of this regulation, when you’re a customer of one of these regulated businesses they need to know you are who you claim to be. This is part of their customer due diligence obligations.
New laws mean more services need your ID
There are new laws reforming Australia’s anti-money laundering and counter-terrorism financing (AML/CTF) regime. This is to make sure we enhance our ability to effectively deter, detect and disrupt money laundering, terrorism financing and proliferation financing.
In addition to the identification you already provide when you open a bank account or conduct certain transactions, you’ll need to provide information to newly regulated businesses under our regulation. This includes services recognised domestically and globally as high-risk for criminal exploitation. Such as certain designated services provided by:
- real estate professionals
- dealers in precious stones and metals
- lawyers
- conveyancers
- accountants
- trust and company service providers.
When you engage with one of these businesses to use their services, they may ask you for identification or questions about your circumstances. We call this customer due diligence.
In the case of jewellers, they may limit the amount of cash they accept for a transaction.
What this means for you
These additional checks help protect our financial system and the community.
This includes when you:
- open an account with a financial institution such as a bank or credit union
- become a customer of a bullion dealer or stockbroker
- open a betting account
- engage a real estate professional
- purchase high-value metals or stones
- engage professional service provides such as conveyancing, legal, accountancy or trust or company service providers.
These service providers have a legal obligation to collect information about you before they can provide services to you.
There are consequences for regulated businesses if they don’t verify this information.
ID you need to provide
The type and amount of ID you’re asked for depends on the institution and the nature of your transaction. The business or organisation you’re dealing with will tell you what identification they’ll accept.
In some circumstances just one form of photographic identification (such as your driver’s licence) will be enough if it shows your:
- full name
- residential address
- date of birth.
Digital driver’s licences are also an acceptable form of identification.
If you’re a sole trader or business owner, you’ll be asked for other details, including:
- business name
- addresses
- Australian Business Number (ABN).
I’ve been asked for more information
Banks and other service providers must monitor their customers’ transactions while engaging their services. This is part of managing their business’s risks related to money laundering, terrorism financing and proliferation financing.
The risks related to particular services, industries and jurisdictions are constantly changing. As a result, service providers must adapt their practices and the information they gather to manage these risks.
Source of funds and source of wealth
When a service provider identifies higher risks, they must ask customers for more information, such as proof of source of funds and source of wealth. This includes long-term customers.
Remember, by providing this information you’re helping to keep our financial system free from criminal abuse.
Your privacy
The information you give these businesses is protected under the Privacy Act 1988.
Related pages
This guidance sets out how we interpret certain Australian legislation, along with associated Rules and regulations. Australian courts are ultimately responsible for interpreting these laws and determining if any provisions of these laws are contravened.
The examples and scenarios in this guidance are meant to help explain our interpretation of these laws. They’re not exhaustive or meant to cover every possible scenario.
This guidance provides general information and isn't a substitute for legal advice. This guidance avoids legal language wherever possible and it might include generalisations about the application of the law. Some provisions of the law referred to have exceptions or important qualifications. In most cases your particular circumstances must be taken into account when determining how the law applies to you.