Why we need to ask you for information
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.
Recent changes to the AML/CFT Act mean that from 1 July 2018 lawyers must comply with its requirements. Lawyers must do a number of things to help combat money laundering and terrorist financing, and to help Police bring the criminals who do it to justice. The AML/CFT law does this because the services law firms and other professionals offer may be attractive to those involved in criminal activity.
The law says 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”.
CUSTOMER DUE DILIGENCE REQUIREMENTS
Customer due diligence 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.
We will need to obtain and verify certain information from you to meet these legal requirements. This information includes:
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your full name; and
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your date of birth; and
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your address.
To confirm these details, we will need to get documents from you verifying these details. Examples of documents we can use as identity verification include:
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passport (New Zealand or overseas);
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New Zealand driver licence;
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New Zealand firearms licence.
An official document that shows your address will also be required. Examples of documents we can use as address verification include:
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a recent bank statement (from a New Zealand registered bank);
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a recent statement or invoice from a utility provider (power, gas, internet, fixed phone line);
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a recent rates invoice or statement from a local authority;
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a recent insurance policy letter (from the insurer, not a broker);
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current correspondence from the IRD or other government agency).
If you are seeing us about 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 for further information. We will need to ask you about the nature and purpose of the proposed work you are asking us to do for you. Information confirming the source of funds for a transaction may also be necessary to meet the legal requirements.