Cracking down on Dirty Money
While many may think money laundering happens elsewhere, New Zealand’s clean green image (which extends to our business dealings) is attracting the wrong sort of attention.
New Zealand has more than 1.3 billion dollars of dirty money landing here every year so it can be laundered through reputable businesses and organisations. This money has come from fraud, tax offending, drug trafficking and other illegal activities.
In response, the New Zealand government has tightened its regulations around detecting criminals. Phase two of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 will be in effect from 1 October 2018 for the accounting industry. Other industries are also required to comply including the legal industry, real estate industry, car sales industry and the NZ Racing Board and High Value Dealers (with varying deadlines). For accountants, we will be obliged to conduct client due diligence to verify your identity for particular transactions (detailed in the Act). This means that even though we may have an existing relationship with you, we may request more documents or different documents.
Forms of identification (for example, your passport or driver’s licence)
Proof of your address (for example a recent utility bill or rates invoice)
Your occupation and where you do business
Whether you reside in a high risk jurisdiction
Whether you are a politically exposed person (PEP)
Proof of sources of funds and/or wealth may be required
We may require further information that is dependent on your specific services. For companies and trusts, we may need additional information regarding directors, shareholders, trustees and beneficiaries.
Please do not be offended if we ask for any of the above documents. As accountants, complying with these regulations is not optional. We thank you in advance for your patience in this new era of vigilance.
If you have any concerns about the Act or would like to discuss your situation, please contact our AML Compliance Officer on 09 407 7117 or by email firstname.lastname@example.org