Ann: AUSTRAC Notice, page-287

Incorrect.

It is two stage:

1. They verify all people via a 3rd party called Illion, which confirms details against electoral role data (Afterpay does not have direct access to this data). For the vast majority this produces a match.
2. If further identification is required i.e. if details do not match in Step 1, Afterpay requires Medicare / Drivers License to confirm ID.

Prior to performing its own ID checks through Illion, ID was verified via the banks (issued cards, which require ID checks of their own) & phone number checking.