Yeah, Collisions will 'realise' if an Entity moves 'through' another entity each update.
So if EntityA is at location 0,0,0 and it moves upwards (Y dimension) through 20 units, and EntityB is at 0,10,0 then a collision will occur.
So if EntityA is at location 0,0,0 and it moves upwards (Y dimension) through 20 units, and EntityB is at 0,10,0 then a collision will occur.