The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act") came in to effect in 2013 and is designed to report the movement of money and to act as a deterrent to those who wish to engage in money-laundering and the financing of terrorism. The Act is part of a global initiative, with OECD countries all operating their own AML/CFT regimes.
All New Zealand banks and other financial institutions have had to be compliant with the Act's regulations since its inception.
New laws were passed in early 2017 which extends the Act to also apply to lawyers and conveyancers with effect from 1 July 2018.
Requirements of the Act
The Act requires us to:
- identify our clients and verify your residential address before providing certain services;
- monitor client accounts and transactional activity on an on-going basis; and
- clarify or update client information, including in some circumstances, the nature and purpose of the client's relationship, and the source of funds or wealth.
Our obligations under the Act
We are obliged to collect more information on our clients than in the past under Customer Due Diligence (CDD) requirements. The Act stipulates that we will have to undertake certain background checks and verify your identity and address before we can begin to act for you on certain matters.
If you are seeing us about company or trust business, we will also need information about all people associated with the entity (e.g. directors and shareholders, trustees and beneficiaries).
From time-to-time we may need to ask existing clients if the information we hold is current, and may ask for additional information.
What this means for you
Dependent on the nature of the matter, you will be asked to provide us with proof of ID and proof of residential address before we can begin working on your matter.
We can only accept the following forms of proof:
Proof of ID
- Drivers Licence
- Firearms Licence
Proof of Address (must be dated within 3 months of presenting)
- Bank Statement
- Rates Bill
- Utility Bill
- Letter from a government agency (e.g. IRD, Work and Income)
These requirements may change dependent on further guidance as to suitable forms of proof.
We may employ the use of a third party Electronic Identity Verification (EIDV) service from the information provided by you.
If you are unable to provide the required information, it is likely that we will not be able to act for you.
As this law applies to everyone, we need to ask for this information from all our clients - even if you have been a client of ours for a long time.
Protecting your privacy
Burnard Bull & Co are committed to protecting all of our client's information. All identity and other personal information provided will be stored and managed in line with the Privacy Act 1993.