Client Can’t Provide ID? AML/CTF Options

If a client genuinely cannot provide standard ID because they cannot obtain it, or cannot access it because of circumstances beyond their control, section 6-10 of the AML/CTF Rules 2025 may permit an alternative approach, but only where its conditions are met and your AML/CTF policies manage the additional risk. You must take reasonable steps to establish the person is who they claim to be. If the person is your customer, you must also identify their risk, collect information appropriate to that risk and take reasonable steps to verify it using data reasonably available. It is not a route around a client who will not cooperate. “Can’t” and “won’t” lead to different places under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (Cth) and the Rules. And for a selling agent, identity is not ownership: alternative identification can establish who a person is, not that they own the property or can sell it. This guide sets out the alternative identification options AUSTRAC describes, how they apply in a property sale, and what your file needs to show.

AML Guard

Record the decision, not just the document

AML Guard records identity checks and the officer’s decision against the case, with a SHA-256 fingerprint of each uploaded document.

Book a demo

TL;DR

Identity is not ownership. Alternative identification can establish who a person is; title and authority to sell are verified separately.
Start with standard ID. AUSTRAC’s examples are a current driver’s licence, passport, proof of age card or foreign national identity card, or a non-photographic primary document paired with a secondary document showing name and address.
Rules section 6-10 applies when an individual is unable to obtain the evidence, or cannot access it due to circumstances beyond their control. It covers your customer, a person acting for them, and individual beneficial owners.
The alternative options AUSTRAC describes include a referee statement, government correspondence, recently expired identification, confirmation from a reputable organisation that knows the person, a community ID for Aboriginal and Torres Strait Islander peoples, and self-attestation as a last resort.
You must have AML/CTF policies to mitigate and manage any additional risk from the missing evidence, and you must apply enhanced due diligence if the customer’s risk is high.
A client who refuses to identify themselves is not covered by section 6-10. If they are a customer you act for, you cannot start the service unless a legal exception applies. If they are the other party to a sale, a separate non-cooperation rule (section 6-33) applies.

Start with standard ID
What Rules section 6-10 says
“Can’t” versus “won’t”
Alternative identification options AUSTRAC describes
Using a referee statement properly
What if a property seller cannot provide ID for AML checks?
Managing the risk
What to record
Our perspective
How AML Guard helps
FAQ
Sources

Start with standard ID

Section 28 of the Act requires you to establish your customer’s identity on reasonable grounds before you start providing a designated service, and, for an individual, to take reasonable steps to establish that the customer is the person they claim to be (section 28(3)(a)).

AUSTRAC’s guidance on initial customer due diligence for individuals gives two standard ways to verify name and date of birth:

a government-issued primary photographic identification document, for example a current driver’s licence, passport, proof of age card or foreign national identity card; or
a primary non-photographic identification document, for example a birth certificate, citizenship certificate or concession card, together with a secondary document showing the person’s name and address, such as a utility bill or a notice issued by a Commonwealth, state, territory or local government body.

Most clients can produce one of these. Section 6-10 is for those who cannot.

What Rules section 6-10 says

Section 6-10 of the AML/CTF Rules 2025 says you are taken to have established a matter relating to a person’s identity if:

the person is an individual;
the person is unable to provide the information or evidence you need because they are unable to obtain it, or they are unable to access it due to circumstances beyond their control;
you have taken reasonable steps to establish that the person is who they claim to be;
if the person is your customer, you have identified the customer’s money laundering, terrorism financing and proliferation financing risk (ML/TF risk) from the information reasonably available before you start the service, collected KYC information appropriate to that risk, and taken reasonable steps to verify that information, using data reasonably available to you, to the extent appropriate to the risk; and
you have AML/CTF policies to mitigate and manage any additional ML/TF risk arising from the lack of information or evidence.

AUSTRAC’s guidance says alternative identification can be used for any individual whose identity you need to establish for initial customer due diligence: your customer, an individual receiving the service on your customer’s behalf, an individual acting on behalf of your customer, and an individual beneficial owner of a customer that is not an individual.

It also lists people who may need a flexible approach, including Aboriginal and Torres Strait Islander people, people affected by natural disasters or by family and domestic violence, people experiencing homelessness, people in prison or recently released, refugees, asylum seekers and recent migrants, older Australians, and people living in remote areas. AUSTRAC says the list isn’t exhaustive.

“Can’t” versus “won’t”

AUSTRAC’s guidance says that before using alternative identification you should first confirm the individual can’t provide the standard documents, or can’t prove their standard identification is correct where details such as name, date of birth or address don’t match.

Section 6-10 depends on inability. Refusing to show a particular document, such as a driver’s licence, does not by itself mean the person is refusing identification: ask whether another ordinary, acceptable way to verify them is available. Section 6-10 is for genuine inability to obtain or access the evidence, not for a refusal to provide reliable information through any reasonable route.

What happens then depends on who the person is:

Your own client. Section 28(1) says you must not commence to provide the designated service until the section 28(2) matters are established. If your client will not identify themselves, you cannot act for them.
The other party to a sale. If you are brokering a sale, both the seller and the buyer are your customers. Section 6-33(2) and (3) of the Rules deal with the party you are not acting for: once you have commenced providing the brokering service to the party you act for, you are treated as having established the matter for the other party if you took all reasonable steps but could not because that customer did not cooperate, recorded the steps and difficulties, and recorded your consideration of whether a suspicious matter reporting obligation arises. Rules section 9-4A says the failure to cooperate is a matter to take into account in deciding whether you have reasonable grounds for a suspicion.

In either case, if you suspect on reasonable grounds that a person is not who they claim to be, section 41(1)(d) of the Act gives rise to a suspicious matter reporting obligation. A refusal can matter more widely too: the obligation can arise when a person requests a service, not only when you provide one, and AUSTRAC lists a customer who tries to avoid know your customer processes as a red flag.

Alternative identification options AUSTRAC describes

These are options to assess under section 6-10 and your policies, not documents that automatically satisfy identity requirements in every transaction. AUSTRAC’s guidance on identifying individuals who don’t have standard ID lists them, and says the list isn’t exhaustive:

A referee statement from someone who holds a position of trust in the community and has an existing relationship with the person.
Government correspondence from an Australian federal, state or territory government authority, or a foreign government, showing the person’s name. For people in or recently released from prison, this can include documents from corrective services.
Confirmation from a reputable organisation or body that knows the person, such as an Aboriginal and Torres Strait Islander organisation or a community health organisation.
A community ID or organisation membership card for Aboriginal and Torres Strait Islander peoples. AUSTRAC notes that these cards aren’t designed to meet identification verification standards.
Recently expired identification, when the person has trouble getting standard identification. AUSTRAC says that in some cases, where appropriate to the risk, you may rely on older expired identification if you can match at least one other identifying detail, such as date of birth, or visually identify the person from the photo. It mentions older people who don’t officially hand in their driver’s licence when they stop driving.
Self-attestation, as a last resort, where you can’t establish identity any other way. AUSTRAC says you must not rely on it if you know or suspect it is incorrect or misleading, you must continue ongoing due diligence, and you must take reasonable steps to verify identity using data reasonably available, for example by asking for another form of alternative identification within an agreed period.

AUSTRAC expects you to use the least invasive procedure suitable for the person’s risk and circumstances.

Using a referee statement properly

AUSTRAC’s list of suitable referees includes a teacher, an employer, a medical practitioner, a police officer, a community leader such as an Elder, a community lawyer and the manager of an aged care facility, among others, or someone able to witness a statutory declaration.

AUSTRAC suggests a statement could include the date, the referee’s name, signature, position, contact details and relationship to the person, the person’s full name, address (if known) and date of birth (actual or approximate), and how long the referee has known them. AUSTRAC says these aren’t mandatory requirements.

To manage fraud risk, AUSTRAC suggests options such as asking for the statement on official letterhead, a recent photograph of the person, or delivery directly from an official email address; checking a professional referee on a public register; following up by phone or email if you have doubts; and using more than one referee or combining a statement with other alternative identification. It notes that a single interaction is unlikely to be an established relationship.

What if a property seller cannot provide ID for AML checks?

AUSTRAC’s examples are mostly about bank accounts, but section 6-10 applies to any reporting entity. In real estate:

An older seller who no longer holds a current licence and has trouble getting standard identification. AUSTRAC’s guidance on expired identification names older people who don’t hand in their licence when they stop driving. First confirm the seller cannot readily provide standard identification. Then, in some cases and where appropriate to the risk, an expired licence may support identification if the photo still allows you to visually identify the seller or you can match another detail such as date of birth.
A seller whose documents were destroyed in a fire or flood. AUSTRAC’s examples include customers whose identification was destroyed in a bushfire and who used a referee statement witnessed as a statutory declaration while replacements were obtained.
A First Nations seller whose names vary across records. AUSTRAC’s guidance on alternative identification for First Nations peoples explains why spellings and names may differ and lists organisations that may provide references.
A person leaving family and domestic violence. AUSTRAC’s examples stress confidentiality and say not to ask for details or evidence of the violence; a referee statement that says the person has experienced family or domestic violence and why it affected their access to identification will generally be sufficient. Take a trauma-informed approach and protect the person’s safety and contact details. That guidance does not replace a separate fraud control every selling agent needs: verify title and authority to sell through safe, independent channels.

One caution specific to selling agents. An impersonator may well claim to have no identification. Alternative identification establishes who a person is; it does not show that the person owns the property. Our guide to stopping vendor identity fraud covers matching the verified person to the registered proprietor. AUSTRAC’s red flags for real estate include a customer who is reluctant to prove their identity, and documents that are in an unexpected format or seem forged or altered.

On the buy side, the timing rules may help in a genuine case. If you act for the seller, section 6-32 of the Rules allows you to start the service for the buyer before due diligence is complete, but only subject to the conditions in section 29 of the Act: you must determine on reasonable grounds that delaying is essential to avoid interrupting the ordinary course of business and that the additional risk is low, and AUSTRAC says inconvenience to you or the customer isn’t a sufficient reason. AUSTRAC’s examples of when a delay may be essential include customers in an emergency, such as family and domestic violence or natural disasters, who don’t have access to identity documents. Due diligence must then be completed as soon as reasonably practicable, and no later than the earlier of 28 days after exchange of contracts and 3 days before the initially agreed settlement day.

A permitted delay is not permission to deal with a sanctioned person. AUSTRAC’s real estate starter kit example delays due diligence on a buyer but completes sanctions screening without delay, and its trust guidance says not to deal with the assets of a person subject to targeted financial sanctions without a permit from the Australian Sanctions Office. Screen promptly and escalate a possible match.

Managing the risk

Section 6-10 requires AML/CTF policies that mitigate and manage the additional risk. AUSTRAC’s guidance says:

identify the risk associated with accepting alternative identification, and take steps to manage it;
consider the person’s circumstances, discuss what they can provide, and assess their risk profile;
apply ongoing due diligence appropriate to the risk, including monitoring for unusual behaviour;
you must apply enhanced due diligence if a customer’s risk has increased to high; and
train your staff so they can apply your alternative identification procedures consistently.

Where a person faces a short-term barrier, AUSTRAC says you may use alternative identification while they replace their documents and ask for standard identification when it becomes available.

What to record

AUSTRAC’s guidance says you must keep records of what you did to identify the individual and what alternative identification you used, and that the record should include information about the individual’s particular circumstances. Section 111 of the Act requires you to keep records of the data you collected and of any analysis, risk assessment or decision-making, until the end of the seven-year period that begins when the business relationship ends or the occasional transaction is completed.

A good file shows:

why standard identification was not available;
what alternative identification you accepted, and how you checked it;
the risk rating and the reasons for it;
who made the decision; and
any follow-up requested, such as replacement documents, and whether it arrived.

Our perspective

Section 6-10 exists so that a person’s circumstances do not lock them out of selling their own home. Used properly, it is a careful, recorded judgement. Used loosely, it becomes the gap an impersonator walks through.

Make the judgement visible: a file showing why standard ID was unavailable, what was accepted instead and who decided is defensible.

How AML Guard helps

AML Guard is built for Australian Tranche 2 reporting entities. It brings identity checks, screening and risk rating into one case record, with an officer reviewing and approving the outcome, and keeps a SHA-256 fingerprint of each uploaded document. Its guided wizards produce your ML/TF risk assessment, AML/CTF program, customer acceptance policy and training manual, and can pre-fill later documents from your risk assessment.

AML Guard is not self-service: firms start with a demo.

FAQ

What can I accept if a client has no photo ID?

Start with AUSTRAC’s standard non-photographic option: a birth certificate, citizenship certificate or concession card with a secondary document showing name and address. If the client genuinely cannot obtain or access standard identification, Rules section 6-10 may apply, with options such as a referee statement or government correspondence, assessed against your policies.

Can I accept an expired driver’s licence for AML/CTF?

AUSTRAC’s guidance says you may accept recently expired identification when a person has trouble getting standard identification, and, in some cases and where appropriate to the risk, older expired identification if you can match at least one other identifying detail or visually identify the person from the photo.

Is self-attestation allowed?

Only as a last resort, where you cannot establish identity any other way. AUSTRAC says you must not rely on it if you know or suspect it is incorrect or misleading, and must take reasonable steps to verify identity using data reasonably available. Record why stronger evidence was unavailable.

What if the client simply refuses to provide ID?

A refusal is not, by itself, the inability section 6-10 covers. First ask what reliable alternatives they can provide. If a customer you act for still cannot be identified, do not start the service unless a legal exception applies. For the other party to a brokered sale, apply Rules section 6-33 and record every reasonable step and your reporting decision.

Does section 6-10 apply to an attorney or executor acting for the seller?

Yes. AUSTRAC’s guidance says alternative identification can be used for any individual whose identity you need to establish for initial customer due diligence, including an individual acting on behalf of your customer. Their authority to act still needs its own evidence, such as the power of attorney or the grant.

Do I need to keep a copy of the alternative documents?

AUSTRAC’s guidance says you are not required to keep copies of identification documents and can instead record their details, but you must keep records of what you did to identify the person, the alternative identification you used and their circumstances.

Sources

See How AML Guard Works

Tranche 2 obligations are now in force.
Book a 20-minute demo to see how AML Guard supports your compliance from the moment your designated service begins.

Book a Demo

This article is for general information purposes only and does not constitute legal advice. Firms should obtain independent professional advice on their specific AML/CTF obligations.

Last reviewed: 26 October 2026.

When a Client Can’t Provide Standard ID: AML/CTF Options for Agents