Anti-Money Laundering Act
Understanding Anti-Money Laundering Requirements
New Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the ‘AML/CFT Law’ for short). The purpose of the law reflects New Zealand’s commitment to the international initiative to counter the impact that criminal activity has on people and economies within the global community.
What Does This Mean For Us?
From 1 July 2018 all law firms will be required to collect and verify information from prospective and existing clients about a range of matters, in order to comply with their legislative obligations to help combat money laundering and terrorist financing.
The law states that law firms and other professionals must assess the risk they may face from the actions of money launderers and people who finance terrorism and must identify potentially suspicious activity. To make that assessment, lawyers must obtain and verify information from prospective and existing clients about a range of things. This is part of what the AML/CFT law calls ‘Customer Due Diligence’ (CDD).
What Is Customer Due Diligence?
CDD requires a law firm to undertake certain background checks before providing services to clients or customers. Lawyers must take reasonable steps to make sure the information they receive from clients is correct, and so they need to ask for documents that show this.
What Do We Need From You?
We will need to obtain and verify certain information from you to meet these legal requirements, we’ll take a copy of these documents to keep on file.
This information includes:
Your full name
Your date of birth
Your address
To confirm these details, you must provide us with documents such as:
Your driver’s licence
Passport
Or your birth certificate
Current bank statement o prove your address
If you are seeing us about a company or trust business, we will need information about the company or trust including the people associated with it (such as directors and shareholders, trustees and beneficiaries).
We may also need to ask you about the nature and purpose of the proposed work you are asking us to undertake.
Information confirming the source of funds for a transaction (compulsory for trusts) may also be necessary to meet the legal requirements.
We must take reasonable steps to ensure the information we receive is correct and may need to request further supporting documentation.
What if you can’t provide the information required under the AML/CFT Act?
If you cannot provide the information required to complete due diligence, we will not be able to represent you.
The law is very strict and applies to every individual and company that engages a law firm in New Zealand. This requirement applies even if you have been a longstanding client of ours.
We will endeavour to make this process as straightforward as possible and will let you know what information we require before we begin working with you.
Questions About AML Requirements?
While the AML/CFT process can sometimes seem daunting, these checks are a standard legal requirement for all law firms in New Zealand. Our team will guide you through the process and explain exactly what documentation is needed for your matter.
If you have any questions about AML/CFT requirements or the information you have been asked to provide, we are more than happy to assist and help make the process as simple as possible.
Get in touch with our friendly team!
Braden Matson
Email: braden@smlaw.net.nz
Phone: 09 279 8351 ext 204
Jasmine Pyke
Email: jasmine@smlaw.net.nz
Phone: 09 279 8351 ext 224
Honour Anderson
Email: honour@smlaw.net.nz
Phone: 09 279 8351 ext 207