Compliance requirements - why we need to ask for information
New Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (we will call it the AML/CFT law). 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 lawyers are now required to comply with its requirements. This law requires us to 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 to identify potentially suspicious activity.
To make that assessment we must obtain and verify information on a range of things. This is part of what the AML/CFT law calls “customer due diligence” (‘CDD’).
CDD requires us to undertake certain background checks before providing services to our clients. We must take reasonable steps to make sure the information we receive from clients is correct, and so we 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:
To verify these details, documents such as your passport, driver’s licence or birth certificate, and documents that show your address, such as a current bank statement or utility bill will be required.
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.
If we are not able to obtain the required information from you, it is likely we will not be able to act for you.
Before we start working for you, we will let you know what information we need, and what documents you need to show us.
Please contact the lawyer who will be undertaking your work, if you have any queries or concerns.