Change coming to family trust due diligence

Associate Justice Minister Nicole McKee says the rules on customer due diligence are being changed to make it easier to manage property through family trusts.

McKee said current requirements involved “an overwhelming amount of personal and legal information” which was not needed for low-risk transactions involving family trusts.

Under the reforms, simplified customer due diligence will involve:

• Confirming the property’s ownership and trustee details match what’s on the certificate of title
• Verifying the couple’s identity documents and their role as trustees
• Retaining a copy of the trust deed.

“When there’s clearly nothing untoward going on, there’s no need for invasive investigations or repetitive paperwork,” McKee said.

She said guidance would be prepared to advise real estate agents, lawyers, and accountants how to apply the simplified checks without fear of penalty.