How are repeat clients (e.g. property flippers, developers) handled - redo KYC for every property sale or settlement?
No, within the 2-year validity window the same individual's KYC can be reused for new transactions; PEP, sanctions and adverse-media re-screening still runs each engagement.
This aligns with the property settlement 2-year ARNECC validity period, the same individual's KYC can be reused for new transactions without redoing the identity verification step. This is the right outcome under AUSTRAC's risk-based approach - the underlying identity hasn't changed.
What still has to happen on each new engagement:
- PEP, sanctions and adverse-media re-screening runs automatically against the existing customer name. PEP and sanctions lists change daily; the re-screen catches any new hits since the last engagement. easyAML does this at no extra charge.
- Risk re-assessment for the new transaction. Even with the same customer, transaction-level inputs differ (counterparty, jurisdiction, value, purpose). The risk score is recalculated for the new matter.
- ASIC change monitoring for company’s. If a director, shareholder or beneficial owner has changed since the last engagement, the platform flags the structural change before the new transaction can complete.
- Transaction recording in the platform - every new matter gets its own transaction record even where the customer is repeated, so the audit trail stays clean.
When a fresh KYC is required for a repeat client:
- The 2-year validity has lapsed (or is about to lapse before the next transaction completes).
- The customer's risk rating has materially changed (e.g. new PEP hit, jurisdictional change).
- Identity details have changed (legal name change, new ID document).
- You form a suspicion that the identity may not be reliable any more.
See AUSTRAC's Overview of customer due diligence.
Related articles
- How does CDD work for an off-the-plan purchase where settlement is years away?
- Does the platform automatically determine the customer's risk rating?
- How are PEP/sanctions matches handled when a common name returns many hits?
- Are periodic reviews after settlement relevant for conveyancers?
- For a buyer's agent with 50 recurring clients, do they need a fresh KYC each purchase?