1 July 2018 marked an important transition for lawyers. The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“the Act”) now applies to law firms.
The purpose of the Act is to detect and deter money laundering and the funding of terrorism, while maintaining and enhancing New Zealand’s international reputation.
Lawyers and conveyancers are now reporting entities and subject to obligations under the Act, most notably in relation to conducting client due diligence (identity and address verification checks).
The Act requires reporting entities to obtain, and therefore the client to provide, identification and other specified information, where a client requires the firm to undertake certain transactions on their behalf. The information required is determined by a risk assessment of the transaction undertaken.
The base level of information required when establishing a new client relationship is certified government-issued photo identification, and proof of address such as a recent invoice or rates statement. More details will be forthcoming as the legal profession adapts to these changes.
In relation to our firm, the specific details required for a given client will be set out as and when required for client activities. We encourage all clients to direct any enquiries to us.