Lawcovernotes August 2016

And youare? Verifying client identity As a solicitor, you’ve probably heard of others in the legal professionwho have been duped by clients using false ID and, as a result, have had a claim made against them. You can however protect yourself against such fraud by reviewing your client identification procedures, in all matters. Thedocumentstosight It’s good risk management to advise all new clients to bring identification with them to their first visit. While you may feel uncomfortable doing this at first, feedback from solicitors who do suggests their clients see it as evidence of professionalism and not a personal intrusion. Lawcover has developed a list of documents to sight as proof of an individual’s or organisaton’s identity. Legislation, government and individual corporation identification policies may require additional proof. Scrutinise the client’s documents carefully for any irregularities that may indicate the documents are sophisticated fakes. If the authenticity of an Australian ID document is in doubt, conduct a Document Verification Service ( DVS ) check. And remember, when you collect client identification documentation, retain and protect it. Once you have verified client identity, you are safe to use Skype, which is valuable for ongoing communication but not for initial identification. Conveyancingclients From 1 August 2016, solicitors must comply with the National Verification of Identity ( VOI ) framework for all paper conveyancing, which requires that you take reasonable steps to verify the identity of clients or their agents, and the people to whom you give certificates of title. The framework largely parallels the online conveyancing requirements for verifying identity. See the Property Exchange Australia ( PEXA ) site. You can complete a VOI check yourself or use one of three PEXA-approved VOI agents: ZipID, Australia Post and IDSecure. Whether or not you offer conveyancing, you can use a PEXA agent for identification purposes in all matters. They are particularly helpful when identifying remote clients or the infirm. Lawcover recommends that solicitors only use PEXA agents. Overseasclients If your client is overseas, an Australian Embassy, High Commission or Consulate can verify their identity. Where a client can’t or won’t use such services, an international financial institution or lawpractice can undertake verification. If conducting conveyancing for an overseas client, you must follow the identification requirements published by the Australian Registrars National Electronic Conveyancing Council ( ARNECC ) in their Model Participation Rules Guidance Note 2. Warning: If you cannot satisfactorily identify a prospective client, consider the potential threat posed to your professional reputation and livelihood and decline to act. Jennifer Tierney Risk Education Manager 17.