Does the firm need to verify the legitimacy of documents like Power of Attorneys (POAs) and trust deeds (detect forgeries)?
No, the reliable-and-independent standard does not require forensic examination; the test is whether the document appears legitimate on its face and there are reasonable grounds to rely on it.
AUSTRAC's reliable-and-independent documentation standard does not require reporting entities to act as forensic examiners. The test is whether the document appears legitimate on its face and whether there are reasonable grounds to rely on it - not whether the practitioner could detect a sophisticated forgery.
What's expected:
- Confirm the document is what it claims to be - for example, a trust deed signed and dated, with consistent party names; a Power of Attorney executed in the correct form for the relevant jurisdiction.
- Check the document matches the rest of the customer's information - names line up with ID documents, dates make sense, the parties are who the customer says they are.
- Note any obvious red flags - alterations, missing pages, mismatched signatures, inconsistencies with ASIC records.
What's not expected:
- Detecting professional-grade forgeries that look authentic on inspection.
- Cross-referencing every document against an external register the practitioner has no access to.
- Hiring an expert to validate documents that appear ordinary.
If something feels off, the right responses are:
(1) try to understand the inconsistency by asking the customer
(2) gather supporting documents
(3) if you can't get comfort, lodge a Suspicious Matter Report with AUSTRAC within 3 business days - without tipping off the customer about the suspicion.
See AUSTRAC's Suspicious matter reports page.