Glossary
AML and KYC checks
Also called: know your customer, anti-money laundering
Anti-money laundering and know-your-customer checks are identity and source-of-funds checks that lenders and other reporting entities carry out under Australian law to prevent financial crime.
An example
Before settlement, a lender asks each borrower and guarantor for photo identification, confirms company and trust details and asks where the borrower's contribution is coming from.
Why it matters
These checks are a legal requirement and can delay settlement if documents are missing. Having identification and entity documents ready speeds up the process.
Points to check
Expect to provide identification for every borrower, director, guarantor and beneficial owner, and sometimes evidence of where your deposit or equity came from. Checks often take longer for trusts and companies with several layers of ownership, so gather trust deeds, company extracts and shareholder details early. A lender asking for identification is normal. A lender asking you to send identity documents or fees through informal channels, such as messaging apps or a personal bank account, is a warning sign worth taking seriously. Keep a record of what you send and to whom.