For POA/EPA/Administrators/Executors, on whom is KYC conducted?
Whilst CDD obligations apply, KYC is generally not required on the appointed representative; confirm the attorney, administrator, executor or trustee and sight the authorising document.
Whilst you have CDD obligations you generally don’t have to conduct KYC on the appointed representative - the person acting on the principal's behalf.
Four common scenarios:
- Power of Attorney (POA) / Enduring Power of Attorney (EPA). Confirm the attorney (the person holding the power). You also need to sight the POA/EPA document to confirm the attorney's authority and that it's still in force.
- Administrator appointed under guardianship or tribunal order. Confirm the administrator. Sight the appointment instrument.
- Executor under a Grant of Probate. Confirm the executor. Sight the Grant of Probate (or Letters of Administration where there's no will).
- Court-appointed trustee or receiver. Confirm the appointee. Sight the order of appointment.
To fully protect your business we recommend asking for and reviewing a certified copy of relevant document.
What you should also capture, even though full KYC isn't run on them:
- The principal's identity details (name, DOB) for the record, so the underlying customer is documented.
- The scope and limitations of the authority - many POAs are limited to specific transactions or asset classes.
- The expiry or revocation date if applicable.
ASIC company structures with deceased directors are a related case - see "How does easyAML handle deceased directors or shareholders still showing in ASIC?" in Section 3. See AUSTRAC's Overview of initial customer due diligence page.