WHY WE NEED TO ASK YOU 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.
Recent changes to the AML/CFT Law means that from 1 October 2018 accountants must comply with its requirements. Accountants must do a number of things to help combat money laundering and terrorist financing, and to help Police bring the criminals who do it to justice. The AML/CFT law does this because the services accounting firms and other professionals offer may be attractive to those involved in criminal activity.
The law says that accounting firms and other professionals must assess the risk they may face from the actions of money launderers and people who finance terrorism and must identify potentially suspicious activity.
To make that assessment, accountants must obtain and verify information from prospective and existing clients about a range of things. This is part of what the AML/CFT law calls “customer due diligence”.
CUSTOMER DUE DILIGENCE REQUIREMENTS
Customer due diligence requires accounting firms to undertake certain background checks before providing some services to clients or customers. Accountants must take reasonable steps to make sure the information they receive from clients is correct, and so they need to ask for documents to show this.
We may 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
- your address.
To confirm these details, documents such as your passport, driver’s licence or your birth certificate, and documents that show your address – such as a current bank statement or utility bill – will be required.
If you are seeing us about company or trust business, we will need information about the company or trust including people associated with it (such as directors, shareholders, 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 the 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 may, in some circumstances, 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 photocopy.
Please contact us, if you have any queries or concerns.