The Model Participation Rules require Subscribers and mortgagees to take reasonable steps to verify the identity of their clients, mortgagors, signers and others. Subscribers and mortgagees can use an agent for these identity verifications. The agent must be an Identity Agent when the Subscriber or mortgagee wants the Verification of Identity Standard set out in the Rules applied and the benefit of the Standard’s being deemed as reasonable steps for the conduct of identity verifications.
The Model Operating Requirements require Electronic Lodgment Network Operators to verify the identity of their Subscribers using the Subscriber Identity Verification Standard set out in those Requirements. If the ELNO does not conduct the verification themselves they must use an Identity Agent.
Identity Agents are persons or entities:
- holding the required minimum levels of insurance set out in the abovementioned Rules and Requirements
- the Subscriber, mortgagee or ELNO engaging them reasonably believes to be reputable and competent, and
- authorised by the Subscriber, mortgagee or ELNO to conduct verification of identity on their behalf in accordance with the relevant Standard
ARNECC does not regulate or approve Identity Agents nor in any way assess their reputation or competence or approve the way they provide their services, including whether their services comply with the abovementioned Rules and Requirements.
Legal practitioners and licensed conveyancers (including settlement agents in WA) may be Identity Agents and are deemed to hold the required insurance. Mortgage brokers holding an Australian Credit Licence, or being a Credit Representative of an Australian Credit Licence holder, may be Identity Agents for mortgagees and are deemed to hold the required insurance. Subscribers and mortgagees engaging a legal practitioner, licensed conveyancer or mortgage broker as an Identity Agent must reasonably believe they are reputable and competent.