When an individual purchases a share in a racehorse or a stallion, or a stallion nomination for their broodmare – in fact whenever you welcome a new customer to your business – we strongly recommend you collect specific personal details and verify the accuracy of those details.
We believe this process helps protect the integrity of your business and our industry, and aids the debt recovery process if required.
Furthermore, you may be compelled to implement Anti-Money Laundering (AML) programs, part of which requires robust due diligence on new customers.
Wrkplace Digital has launched a Know Your Customer (KYC) solution to swiftly and reliably onboard new customers, comply with AML obligations and reduce fraud and bad debt risk. We think it makes good business sense and it protects our industry’s reputation.
Andrew Jarvis
Our KYC solution allows your customers to verify that they are who they say they are, and they live where they say they live. Anytime, anywhere, on any device. It also includes AML screening.
Why verify a buyer’s identity?
The Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AML/CTF Act) imposes an obligation on certain “reporting entities” providing a “designated service” to detect and deter money laundering and terrorism financing.
In the racing and breeding industry, racehorse syndicators holding an Australian Financial Services Licence (AFSL) are deemed to be providing a “designated financial service” and are therefore compelled to implement an AML/CTF Program.
There are two parts to an AML/CTF program. Part A must include processes and procedures to help identify, mitigate and manage the money laundering risks. Part B is focused on the procedures for identifying customers and beneficial owners, and verifying their identity.
The Wrkplace KYC solution helps meet the obligations of Part B.
We believe ALL businesses should undertake this due diligence – not just those that are legally obliged to. Racehorse trainers, syndicators, agents and farms all have a duty of care to verify the bona fides of their customers.
For more information on the benefits of identity verification, read 6 reasons to verify the identity of your new customers.
What information does a new customer need to provide?
At a minimum, our KYC solution requires the customer’s full name, date of birth and current residential address.
Several background checks against independent national databases often result in your customer’s identity being verified successfully. On occasions though, they may need to submit a government document ID such as a Drivers Licence, Passport or Medicare Card number in order to self-verify successfully.
Our solution, using Australia’s leading identity verification platform GreenID (by GBG), also performs checks against various watch lists such as Interpol Most Wanted, ICE Most Wanted, DFAT, Politically Exposed Persons, Local and Global Sanction lists, and others.
What do we do with that information?
Wrkplace Digitial is an Identity Service Provider (IDSP) authorised by the Australian Government. We collect and hold limited Personally Identifiable Information (PII) for the sole purpose of verifying full name, date of birth and residential addresses.
After each verification attempt, we hold that data for a maximum of six (6) months but never store Sensitive information (SI) such as Drivers Licence, Passport or Medicare Card Numbers.
By using reputable “fintech” service provider GreenID, trusted by many banks, institutions and wagering providers, we attempt to verify a buyer’s identity and residential address against reliable and trustworthy government and independent data sources. Sensitive information is only ever recorded in GreenID (never in the Wrkplace database), thus adding further protection of customer data.
What happens if the buyer’s identity and/or address cannot be verified?
Around 90% of customers verifying themselves via our KYC online process are verified “first-time” via background checks. But around 10% of buyers are asked to provide additional proofs, usually because they have changed address recently and have not yet updated their Driver’s Licence or Electoral Roll.
Our solution interactively provides alternate options such as providing a Drivers Licence / Passport / Medicare Card number or a recent copy of a Bank Statement, Rental Agreement, Utilities Bill. This is then verified in Green ID only (and not kept on file) for independent verification.
What if the buyer can’t provide the proof needed?
Customers must provide satisfactory proof of identity and address to be “ID verified”.
If you are a “reporting entity” providing a “designated financial service” (such as racehorse syndication), customer applications to purchase a share in a horse should NOT be accepted if identity verification is unsuccessful or the customer appears in a watch list of concern.
If you operate another business not providing a financial service, we advise the verification outcome and you may choose whether or not to accept the customer. We would advise not to of course.
Put simply…
If the new customer cannot prove they exist nor prove their current residential address, you do not want them as a client.
If the new customer exists on a watch list of concern, you do not want them as a client.