» What’s the 100 Point of ID for Bank Accounts in Australia?

Opening a bank account in Australia requires individuals to go through a verification process to establish their identity.

The Australian government, in an effort to prevent fraud and ensure financial security, mandates a “100-point identification system” for various financial transactions, including bank account openings.

This system assigns different point values to various forms of identification, and individuals need to present enough documents to reach or exceed 100 points.

But what exactly does this mean, and how does it work?

Understanding the 100-Point System

The 100-point identification (ID) system is a method established to verify a person’s identity across government and financial institutions.

The idea behind the 100-point system is that certain types of identification, such as passports and driver’s licenses, hold more weight in proving identity than others, such as a utility bill or bank statement.

This system was initially introduced as a way to combat money laundering, identity theft, and other financial crimes.

It applies not only to bank accounts but also to other financial services like obtaining a loan or applying for a credit card.

Why the 100-Point ID System Is Necessary

Australia’s strict regulatory landscape requires financial institutions to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act (AML/CTF).

This act mandates that banks and other financial entities verify the identity of anyone who wants to open an account or engage in significant financial transactions.

The 100-point system is part of this verification process.

The need for such a thorough ID check comes down to two main reasons:

Preventing Fraud: By verifying identities, banks can ensure that they are not opening accounts for individuals who are using fake or stolen identities.
Meeting Legal Obligations: Banks must meet certain legal requirements to prevent illegal activities like money laundering and terrorism financing. Failure to comply can lead to fines or other legal consequences.

→ SEE ALSO: Types of Employment in Australia

Documents and Points Breakdown

The 100-point system breaks down identification documents into primary and secondary categories, with each having different point values. Here’s a general guide on how points are assigned:

Primary Documents

Primary documents are high-value forms of identification, often government-issued, and they carry a larger point value. Examples include:

Passport: 70 points – Australian or foreign passports are considered a strong form of identification.
Birth Certificate: 70 points – An official birth certificate issued by a government authority holds significant weight in verifying identity.
Citizenship Certificate: 70 points – This document can be used by those who have obtained Australian citizenship to prove their identity.
ImmiCard: 70 points – Issued to visa holders and refugees in Australia, this card is a valuable identification tool.

Secondary Documents

Secondary documents usually supplement the primary documents and carry a lower point value. These include:

Driver’s License: 40 points – A license issued in Australia is a common secondary form of identification.
Medicare Card: 25 points – A Medicare card shows that the individual is a participant in Australia’s healthcare system.
Utility Bills: 25 points – A utility bill (electricity, water, etc.) that includes the individual’s name and address can be used as proof of residence.
Bank or Credit Card Statement: 25 points – Financial statements that include the individual’s name and address can also be used.
Student ID or Employee ID Card: 25 points – Provided that the ID card contains a photograph and full name, it can contribute to the points total.

How to Reach 100 Points

To reach the 100-point threshold, individuals typically combine different types of documents. For instance:

A passport (70 points) plus a utility bill (25 points) gives a total of 95 points, so an additional piece of ID, like a Medicare card (25 points), would easily surpass the 100 points required.
Alternatively, if an individual doesn’t have a passport, they might use a combination of a birth certificate (70 points) and a driver’s license (40 points), reaching 110 points.

It’s important to note that each institution may have slight variations in how they interpret these rules, but the overall structure of the system remains consistent.

Proving Residency and Identity

One of the key requirements for opening a bank account in Australia is not just proving who you are, but also proving your current residency.

Many secondary documents, such as utility bills and bank statements, serve this dual purpose.

Proving Residency: A utility bill or rental agreement showing your address is generally sufficient proof of residency.
Proving Identity: A combination of a government-issued ID (passport, driver’s license) and another form of identification will typically suffice.

Special Circumstances and Exemptions

While the 100-point ID system is rigid, there are some exemptions and considerations for specific populations:

New Arrivals: For individuals who are new to Australia and do not yet have a full range of ID documents, some banks may allow for reduced documentation in the short term. Often, presenting a passport alongside a visa or immigration document can suffice initially. However, these individuals will still need to provide additional documentation later on.
Refugees and Asylum Seekers: Individuals who may not have access to traditional identification documents can use an ImmiCard, alongside other documents, to meet the point requirement.
Aboriginal and Torres Strait Islanders: Recognizing the unique circumstances that might prevent individuals in these communities from accessing conventional forms of ID, the government provides certain allowances. Alternative identification processes might be used, such as a letter from a community leader.

How the 100-Point System Is Applied

Once the required 100 points are assembled, the bank or financial institution typically verifies the documents either in person or online.

In recent years, many banks have made the identification process more accessible by offering digital verification systems, especially in response to the rise of online banking.

100 point identification for bank accounts in Australia. What's this? - Wise

Online vs. In-Person Verification

In-Person Verification: This is the traditional method, where you bring physical copies of your identification documents to a bank branch for inspection.
Online Verification: Some banks now allow new customers to submit their documents online. They may use third-party verification services to check the authenticity of the documents, making the process more convenient for people who can’t visit a branch in person.

What Happens if You Don’t Meet the 100 Points?

If someone is unable to provide enough documents to reach 100 points, they will likely not be able to open a bank account until they can gather the necessary identification.

Banks might offer guidance on alternative forms of ID that can be used, but the requirement remains firm.

For those with extenuating circumstances, like recently arriving in the country or lacking certain types of identification, it is possible to consult with the bank directly to explore temporary solutions or exemptions.

Conclusion

The 100-point identification system is an essential part of ensuring secure banking practices in Australia.

While it may seem like an inconvenience at first, the process is designed to protect both individuals and the financial system from fraud, money laundering, and identity theft.

By understanding what types of documents are needed and how they contribute to the point total, individuals can easily navigate this system and open a bank account with confidence.

Whether you’re new to Australia or a long-time resident, being prepared with the right identification will make the process smoother.