Why you might be asked for ID
When you open an account or conduct certain transactions with providers of financial and other services, they need to know you are who you claim to be.
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
- invest into a managed investment scheme
- transfer money overseas using a remittance service provider
- purchase or sell digital currency
- open a betting account.
Why you need to provide this information
Banks and other service providers have a legal obligation to verify your identity before they can provide services to you. They may also have obligations to collect other information about you to comply with anti-money laundering and counter terrorism financing legislation. This is one way to keep Australia safe from serious financial crime such as money laundering and terrorism financing.
ID you need
The type and amount of ID you are asked for will depend on the institution and the nature of your transaction. The business or organisation you are dealing with will tell you what identification they will accept.
In some circumstances just one form of photographic identification (such as your driver’s licence) will be enough as long as it shows your:
- full name
- residential address
- date of birth.
Digital driver’s licences are also an acceptable form of identification.
If you are a sole trader or business owner you will be asked for a range of other details, including business name and addresses and ABN.
Why am I being asked for more information when I’ve already provided my ID?
Banks and other service providers must continuously monitor their customers. This is part of managing their business’ risks related to money laundering and terrorism financing.
Service providers must ask customers, including long-term customers, for more information when they identify higher risks. 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.
The information you provide to these organisations is protected under the Privacy Act 1988.
The content on this website is general and is not legal advice. Before you make a decision or take a particular action based on the content on this website, you should check its accuracy, completeness, currency and relevance for your purposes. You may wish to seek independent professional advice.