AUSTRAC has issued updated guidance to ensure individuals who cannot provide traditional identity documents can access superannuation.
There were currently some members of the population who were unable to access traditional identity documents including Aboriginal and Torres Strait Islander people, people in remote communities, gender diverse people and those fleeing domestic violence.
This proved problematic when financial institutions required documentation to access their services.
However, changes meant there were now alternative ways to verify an identity while still satisfying anti-money laundering regulations including referee statements, government correspondence and a community ID.
AUSTRAC chief executive, Nicole Rose, said AUSTRAC was committed to financial inclusion.
“The guidance will help financial institutions adopt flexible and compassionate approaches to customer identity processes, while still maintaining due diligence processes where they are concerned that a customer is not who they claim to be,” Ms Rose said.
“Having flexible customer identification procedures in place is essential to ensure that members of the community can access financial services so that temporary or systemic barriers do not prevent people from gaining this access.”
Australian Institute of Superannuation Trustees (AIST) CEO, Eva Scheerlinck, said: “Some members of the community, particularly the most disadvantaged, are not always in a position to provide traditional forms of identification.
“While verifying the identity of someone is important, those who struggle to do so should not be denied the financial services they need, including their superannuation savings.
“The updated guidelines from AUSTRAC strike the right balance between information security and social inclusion by allowing for flexibility in procedures.”
The merger, first announced in December 2022, was due to be completed in mid-2024.
The research house has offered a silver lining after super fund returns saw the end of a five-month streak last month.
A survey of almost 6,000 fund members has identified weakening retirement confidence, particularly among those under 55 years of age, signalling an opportunity for super funds to better engage with members on their retirement journey.
The funds have confirmed the signing of a successor fund transfer deed, moving closer to creating a new $29 billion entity.
Add new comment