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MFAA Prosper : Mortgage and Finance Brief 13
Mortgage & Finance brief 55 THE NSW ReAl PROPeRTy Amendment Regulation 2011 became law in November last year. The regulations detail the identification processes that lenders ar e obliged to follow in dealing with mortgage borrowers in NSW. The law states that lenders do not have to interview the borrower and can rely on certified documents that have been signed by a person who is authorised by law to administer an oath (eg legal practitioners and justices of the peace). The law also contains a provision that states a lender will satisfy the identification process if they comply with the rules under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (AML/CTF). According to Gordon Perkins from MacGillivrays Solicitors, a lender’s regular AML/CTF processes should be enough to comply with the regulations. “Most of the time, a lender will automatically identify the person signing a mortgage under their AML/CTF rules, because the person is the borrower or a director of the borrower (eg a company loan),” he says. “The provision above applies to this class of person, so a lender’s normal AML/CTF procedures should satisfy the requirements.” Perkins says lenders can use AML/CTF identification procedures, provide certified documentary evidence, or personally identify each borrower and guarantor. “If you choose the AML/CTF route, you should revise your AML/CTF procedures for identifying parties to your transaction documents so that they are consistent with the requirements of the AML/CTF Rules, particularly with regard to ‘Rule 4’,” he says. This infor mation does not comprise legal advice and the MFAA accepts no responsibility for it. ••• What implications does the new real property amendment regulation 2011 have for lenders’ borrower identification obligations? nsW property regulation What do i need to KnoW aBout..? ABN: 83 107 366 496
Mortgage and Finance Brief 12
Mortgage and Finance Brief 14