What is AML and how does it affect me?

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What is AML and how does it affect me?

What is AML and how does it affect me?

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 – or “AML” as it’s more commonly known is part of a worldwide initiative to crack down on illegal activities, including money laundering and terrorism.  

The aims of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 are to:

1. detect and deter money laundering and the financing of terrorism; and

2. maintain and enhance New Zealand’s international reputation by adopting, where appropriate in the New Zealand context, recommendations issued by the Financial Action Task Force; and

3. contribute to public confidence in the financial system.

The Ministry of Justice (MoJ) is responsible for administering the AML/CFT Act and its six Regulations.

The Act places obligations on certain types of businesses, known as reporting entities, to detect and deter money laundering and terrorism financing.


HOW AM I AFFECTED BY THE NEW LEGISLATION?

Since 1 October 2019 all accountants have been obliged to seek specific information from our clients so we can continue to act for them.  If your business is held in the name of a company, a trust or has overseas ownership we’ll need specific information about the entity in question, including the associated people with it, - such as directors and shareholders, trustees, and beneficiaries.  We are also required to ask you to confirm the source of fund for such entities.

The AML Identity Verification process starts with asking our clients to present in person original documents which verify who you are and where you reside. 


INDIVIDUALS

TRUSTS

 COMPANIES

 NOTES:

Trusted Referees 

In New Zealand, a trusted referee must be at least 16 years of age and one of the following: 

a.    Commonwealth representative  

b.    Member of the police  

c.    Justice of the peace 

d.    Registered medical doctor 

e.    Kaumatua 

f.     Registered teacher 

g.    Minister of religion 

h.    Lawyer  

i.     Notary public 

j.     New Zealand Honorary Consul  

k.    Member of Parliament 

l.     Chartered accountant 

m.   A person who has the legal authority to take statutory declarations or the equivalent in New Zealand 

Outside of New Zealand, a trusted referee must be a Justice of The Peace (or similar), or someone with legal authority to take statutory declarations. AML for Trusts is updated every three years and for Companies is every five years. Thank you for your understanding with this regulatory process.”   

What is AML and how does it affect me?
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