Banking News

Director IDs to Target Illegal Phoenixing

(04 November 2021 – Australia) Company directors must now link a permanent Director Identification (ID) Number to their myGovID in a push to prevent illegal “phoenixing” activity.

Illegal phoenixing occurs when a new “shell” company conducts the operations of an existing enterprise that is insolvent, bankrupt or liquidated.

The Director ID is a unique 15-digit identifier that existing company directors will need to apply for by the end of Q3 2022 in order to avoid a civil penalty of up to A$1.1 million. It is the first public beta service to be offered by the Australian Business Register Services (ABRS), which is consolidating 32 business registers under the modernising business registers program.

“The director ID will reduce illegal activity, while paving the way for streamlined experiences in the future. Director ID will help to create a fairer business environment by improving data integrity, creating greater confidence in director’s identities, and allowing earlier identification of director involvement in unlawful practices, such as illegal phoenix activity” stated Federal Minister for Superannuation, Financial Services and the Digital Economy, Jane Hume

“Director ID will help to prevent false and fraudulent director identities, which ensures business owners doing the right thing get a fair go.”