Connective Risk & Compliance. Fraud Detection Took Kit Booklet

Transcription

1 Connective Risk & Compliance Fraud Detection Took Kit Booklet

2 What should be shown on a Payslip? Employer and employee name Australian Business Number (if applicable) Pay period Date of payment Gross and net pay If the employee is paid an hourly rate: the ordinary hourly rate, the number of hours worked at that rate and the total dollar amount of pay at that rate Any loadings, allowances, bonuses, incentive-based payments, penalty rates or other paid entitlements that can be separated out from an employee s ordinary hourly rate Any deductions from the employee s pay, including: the amount and details of each deduction the name, or name and number of the fund / account the deduction was paid into Any superannuation contributions paid for the employee s benefit, including: the amount of contributions made during the pay period (or the amount of contributions that need to be made) the name and / or number of the superannuation fund the contributions were made to.

3 Employment Verification Checks Google maps / street view Search for employers website Identify the registered domain owner of the website ( Yellow Pages / White Pages search Verify employers ABN (abr.business.gov.au) ASIC register - search business name Years established versus years employed Income verification Spelling and mathematical errors on payslips Censor check taxation and superannuation against online pay calculators ( Cross reference information between sources (NOA, PAYG summary, bank statements) Conduct verbal employment check (subject to Privacy consent) Identify allowances on payslips that appear irregular or not relevant to their job description (i.e. uniform entitlements). Establish if the income is consistent with the applicants occupation (www. payscale.com/research/au/country=australia/salary) Generic MYOB payslips should be a red flag when the employer is meant to be large / multinational Inconsistent YTD earnings compared to clients annual salary

4 Employment Verification Connective s approach: Mandatory requirement for our credit representatives and recommended best practice for ACL holders Income documents - PAYG applicants Two (2) consecutively dated payslips One (1) or more of the following: - PAYG summary, ATO notice of assessment, or full tax return Income documents - Self employed applicants Two (2) years personal income tax returns and correlating ATO notice of assessment Two (2) years tax returns and correlating ATO notice of assessment for all entities (company, trust, SMSF) Two (2) years profit and loss (trading statements)

5 Overseas Employment Documentation You should obtain: An employment letter At least 2 consecutive payslips At least 3 months transaction account statements showing deposits of net salary payments from their employer or If self employed 2 years tax returns and financials (Balance sheet and P&L) Employment documentation requirements specific to foreign employees All documentation is supplied in their national language Bank statements stamped by their local branch to certify they are correct and should not be sourced from the internet. Non-English employment documentation is to be translated into English by an accredited translator at your request. You can locate a local translator through NAATI at NAATI translation is provided for a fee

6 Overseas Income & Employment Verification Complete the income verification checks that we recommend for locally employed clients ü Search for the employer or accountant s website and where possible a government business or company register website to verify employer phone number and address ü Phone the employer to confirm employment details via phone number from your web searches Check the bank statements for red flags Most importantly keep notes of your enquiries and the verifications you undertook to satisfy yourself that the clients employment and income is genuine

7 Bank Statements Inconsistent fonts Irregular line spacing between transactions Poor alignment (vertical and horizontal) Spelling errors Account numbers that are different between pages Running balances not carried over from consecutive pages Figures not tallying up Deposits regularly made outside of clients locality / place of work Evidence of liquid paper / white-out marks Date sequence out of order Repetitive transactions Low number of transactions Only whole dollar value transactions (debits and credits) Unidentifiable deposits (i.e. cash only) Illegible / poor quality copies Mismatch of deductions from what client disclosed in their application Transactions that have been deliberately removed or blacked out Connective s approach: Mandatory requirement for our credit representatives and recommended best practice for ACL holders Three (3) months of transactional bank account statements (irrespective of the purpose of borrowing) Clients who are purchasing / constructing a property Three (3) months dedicated savings history Clients who are refinancing Three (3) to six (6) months of home loan refinance statements Three (3) to six (6) months of any other debts being consolidated (personal loans, credit cards)

8 connective.com.au