Have your say on the future of electronic conveyancing

The online consultation forums discussions are well under way.  This is your chance to have your say on how you want the national electronic conveyancing environment to work for your business.

• Click here to join the Forums
• Click here to go to the Forum discussions

If you have any questions please email moderator@necs.gov.au or call Jackie Bailey, Consultation Manager on 03 8626 4521.

Forum Focus Topics: User Identification in NECS & Client Identity Verification

User Identification in NECS

Certifiers (including Accredited Certifiers) and Authorised Officers representing a business entity Subscriber are required to have and use a digital signature certificate. Users who are not Certifiers do not need a digital signature certificate, their identity being vouched for by their Subscriber.

Digital signature certificates are obtained from commercial suppliers after having the applicant’s identity verified by a separate accredited provider of identity verification services. The identity verification is to the standard required when opening a bank account.

Authorised Officers, Users and Certifiers sign-on to the NECS using an allocated user-id and a self-selected password. Users are not required to provide any further identification. Authorised Officers must use their digital signature certificate when changing the privileges assigned to any of the Subscriber’s Users or Certifiers. Certifiers must use their digital signature certificate when certifying and signing instruments, statements and reports.

Authorised Officers and Certifiers are responsible for the safe-keeping of their digital signature certificates from fraudulent use by others in accordance with security controls put in place by Subscribers.

The NECS verifies the digital signature certificates of Authorised Officers before making any changes to the assigned privileges of their Subscriber’s Users and Certifiers. The NECS also verifies the digital signature certificate of Certifiers before acknowledging that an instrument, statement or report is ready for lodgment, settlement or delivery respectively.

Each Land Registry requires the digital signature certificates of Certifiers on signed instruments to have been successfully verified by the NECS and can independently re-verify the certificates.

How will this impact on your industry practices?  Have your say on the forums: 
http://www.necs.gov.au/forums

References:
National Business Model v9 130706 Section 11 (Page 22)
NECS Operations Description v5 130706 Section 9.1.2 (Page 27)

Client Identify Verification

Subscribers representing Clients other than themselves are required to verify the identity of the Client by following a procedure prescribed in each jurisdiction. The procedure generally involves:

• meeting the Client (or their authorised representative if a business entity) face-to-face
• viewing and scrutinising certain identity documents presented by the Client
• where possible, verifying the authenticity of the documents
• completing a Client Identity Verification Record with details of the identity documents presented and verified
• certifying, signing and retaining a printed copy of the Identity Verification Record.

Verifying the authenticity of identity documents produced by a Client (or their authorised representative) includes:

• examining carefully for any obvious signs of alteration, forgery or fraudulent representation
• ensuring the documents contain all of the security features advised from time to time by their issuing authorities
• verification of business identifying data against publicly available databases such as ASIC and ABR
• verification that personal documents match records held by their issuing authorities using the Commonwealth’s Document Verification Service when it becomes available.

The Subscriber (or an employee or contractor acting for the Subscriber) certifies that the identity verification process prescribed in the jurisdiction has been properly followed. Included in the prescribed process are special arrangements for Subscribers servicing long-standing, remote-area and foreign-resident Clients.

When a Certifier subsequently certifies an instrument, settlement statement or information report for the Subscriber the certification is in part to the effect that they have good reason to believe that the Subscriber has properly followed the prescribed identity verification procedure.

The details of the prescribed client identity verification procedure in each jurisdiction are yet to be determined and there is a prospect of one procedure being adopted by all jurisdictions, after consultation with legal practitioner and licensed conveyancer associations, in the interests of eliminating unnecessary confusion for Subscribers, particularly those near jurisdiction boundaries and those with interstate Clients. Nevertheless, the individual procedures or the nationally uniform procedure will be based on the requirements of the Commonwealth’s Anti-Money Laundering and Counter-Terrorism Financing legislation expected to be finalised in the near future.

What are your views on the Client ID Verification process?  Have your say on the forums: 
http://www.necs.gov.au/forums

References:
National Business Model v9 130706 Section 11 (Page 22)
NECS Operations Description v5 130706 Section 9.2.3.2 (Page 31)

Details of the Commonwealth’s AML/CTF draft legislation and rules are available at:
http://www.ag.gov.au/aml

Status of the Commonwealth’s intended Document Verification Service is available at http://www.ag.gov.au/agd/WWW/ncphome.nsf/Page/Identity_Theft

The National Steering Committee

The National Steering Committee for NECS met in Brisbane on 25 August 2006 for the fourth time. The new representatives Brett Phillips (ACT) and Ian Gilbert (ABA) were welcomed.

The Chair announced the three critical consultancies that have recently been commissioned by the Committee for implementation next year.

Ongoing Governance - Dench McClean Carlson
Regulatory Review     – Gilbert & Tobin / Allen Consulting Group
Risk Assessment         - Clayton Utz

The key outcomes of the meeting included the decision to complete the review of the NECS and Victorian EC systems.  To read more click here. 



        

                                               The NECS Steering Committee, Brisbane 25 August 2006*

* Absent: Greg Shanahan, NT.

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