NECSpress Issue 16 - 08 March 2007 - National Electronic Conveyancing System

NECSpress Banner for Web, Issue 16

Welcome to NECSpress, the e-newsletter for the National Electronic Conveyancing System. In this edition: • The National Consultation Report • Forum Topics - Client Identification Verification and Subscriber Qualification
The National Consultation Report Consultation with the widest possible group of stakeholders has been a key aspect of the development phase for NECS. We have implemented a multi faceted national consultation approach. This has involved the production of NECSpress, presentations in every jurisdiction, industry consultation forums, the online forum, development of the NECS Operations Description and requests for formal written submissions from key stakeholders. The results of the consultation so far have been brought together in a National Consultation Progress Report. The feedback from stakeholders to date indicates that there is unanimous support for NECS and that the National Business Model is sound. The most significant single issue raised by stakeholders was the Verification of Identity procedures. There were discussions on the adequacy of requirements for identifying transacting parties in mortgages and land transfers, accommodating remote access, disabled and overseas participants and the desirability of uniformity across jurisdictions. This report, together with the reports of the consultancies on risk assessment, ongoing governance and regulatory review will be presented to the National Steering Committee at its next meet on 30 March. They will help to refine the National Business Model which, in turn, will assist in the definition of the NECS requirements. As we move into the consideration of more detailed issues surrounding system functionality and procedural requirements consultation regarding the development of local practices and protocols will be critical. Consultation remains an integral part if the process and all feedback will be gratefully received.
Forum Topics
Client Identity 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 set on the requirements of the Commonwealth’s Anti-Money Laundering and Counter-Terrorism Financing legislation expected to be finalised in the near future. 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
Subscriber Qualification Business entities (represented by an Authorised Officer) and individuals complete an online application form to become registered with the NECS as a Subscriber. The application form requires specific information to be provided, authorisations to contact third parties to verify specific information, an unequivocal commitment to common system rules and a certification of the correctness of all information provided. The application is signed by the applicant using their digital signature certificate. Among the specific information to be provided by each applicant is full name, registered office address, ACN/ABN/ARBN, size and nature of the business, relevant industry experience, minimum professional indemnity and fidelity insurance requirements, names of alternate Authorised Officers, names of nominated Users and full contact details of all persons. On receipt of the completed and signed application, the NECS verifies the applicant’s digital signature certificate and the NECS operator conducts all necessary enquiries to verify the information provided, where necessary requesting further information or clarifications from the applicant, and when satisfied with the applicant’s bona fides establishes the applicant as a Subscriber in the NECS (including establishing the alternate Authorised Officers and nominated Users) and notifies the applicant that the application has been successful. The NECS emails each of the Subscriber’s alternate Authorised Officers and nominated Users advising that they have been registered to use its facilities on behalf of the Subscriber and providing them with a unique user-id and a one-time, limited validity password to access the NECS. Where an application is rejected, the applicant is notified of the reason for the rejection and what can be done to overcome it in a fresh application. Each registration as a Subscriber is conditional on no material changes to the information provided in the successful application and is set to expire at the same time as the Subscriber’s insurance cover. Two months prior to each registration expiry the NECS emails the Subscriber requesting completion of an online application form to renew the registration. User registrations are automatically renewed when their associated Subscriber’s registration is renewed. References: National Business Model v9 130706 Section 8.2 (Page 10) NECS Operations Description v5 130706 Section 9.1.2.1 (Page 27)
Want to know more? Please check out the NECS website www.necs.gov.au or contact us at: Level 2, 10-16 Queen St Melbourne Vic 3000 Ph: 03 8626 4545 Fax: 03 8626 4546 Email: info@necs.gov.au