Why do need to ask 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.
Changes to the AML/CFT Act meant that from 1 July 2018 lawyers must comply with the requirements.
Lawyers must do a number of things to helps combat money 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 offer may be attractive to those involved in criminal activity. Lawyers must assess the risk they 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. 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:
Your full name; and
Your date of birth; and
To confirm these details, documents such as your driver’s licence or passport, and documents that show your address, such as bank statements or government-issued correspondence.
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, or 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 legal requirements.
If you cannot provide the required information
If we are not able to obtain the required information from you, it is likely we will not be able to act for you. Because the law applies to everyone, we need to ask for the information even if you have been a client of ours for a long time.
Before we start working for you, we will let you know what information we need, and what documents you need to show us and let us view, verify and photocopy.
For further information contact us or call (03) 477 8080