Anti-Money Laundering and Countering Financing of Terrorism
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“the AML/CFT Act” for short) has expanded to cover more New Zealand businesses. The purpose of this 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.
AML has been in place in New Zealand since 2013 and already applies to lawyers, banks and financial service providers. From 1 October 2018 accountants were also required to have measures in place to help detect money laundering and the financing of terrorism.
Customer Due Diligence
Customer Due Diligence requires accountants to undertake certain background checks before providing services to clients. To meet and comply with the Act, we are now required to collect and verify identification and certain information about our clients, including your full name, your date of birth, and your address.
The information we require will depend on the type of entity and the work we’re doing for you. For example, for trusts, we may need information about trustees and beneficiaries. For companies, we may need information about directors and shareholders. We may also need to verify the source of funds for certain transactions.
This applies for all new clients and we will advise if we require additional information from our existing clients.
If you have any questions regarding these changes or would like more information please contact us.