AML Obligations
Money laundering is widespread in New Zealand, with an estimated $1.36 billion being laundered each year. Legislation was put in place in 2009 to try to identify, and prevent this.
Protecting New Zealand
Making it harder for criminals to launder money provides a significant disincentive to carrying out the criminal activity in the first place. New Zealand has had Anti-Money Laundering and Countering Financing Terrorism laws operating since 2013. We’re now extending these laws to include more business and service providers as well as additional reporting responsibilities from those companies.
Doing business as usual
Businesses that provide services covered under the AML/CFT Act will now need to put systems and processes in place to prevent criminals from trying to exploit them. This includes ensuring they can identify their clients and, in some cases, know the sources of their clients’ funds. Additionally, all businesses and service providers covered under the AML/CFT Act have reporting requirements that relate to particular transactions as well as suspicious activities.
What business sectors are covered?
The AML/CFT Act now covers transactions and
purchases in:
- Casinos
- Banks and financial institutions
- Trust and company service providers
- Lawyers and conveyancers
The following sectors are being covered progressively:
- Accountants and providers of accounting services from 1st October 2018
- Real Estate Agents from 1st January 2019
- Dealers in high value goods and the New Zealand Racing Board from 1st August 2019
What can I do?
Generally speaking, clients and users of these services don’t need to do anything. Simply be aware that some extra information may be required from you during these transactions. Even if you have been a customer of these businesses for a long time, they may need to ask you to help confirm that you are who you say you are. The information you are asked to provide will vary depending on the type of transaction.
Ask us about how this will affect you or visit bayleys.co.nz/information/AML
