Why We Need To Ask You For Information
New Zealand has recently passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, also known as the AML/CFT Act. This law is part of New Zealand’s wider commitment to the international community, helping counter criminal activity around the world.
From July 1 2018, changes will come into effect meaning lawyers will have to show compliance with the AML/CFT Act. At Godfreys Law, we often process sums of money through our Trust Account on behalf of our clients. Because of this, the Government believe law firms and other professionals with trust accounts may be attractive to criminals who want to launder money.
The AML/CFT Act asks lawyers and other professionals to assess the risk in transferring money in and out of Trust Accounts, and to identify suspicious activity. To help us assess the risk levels, lawyers must verify the source of the funds.
Customer Due Diligence
Like most forms of due diligence, the AML/CFT Act asks lawyers to ask for documents so they can verify who they are dealing with. Therefore, moving forward, we may ask to see:
- Your Driver's License;
- Your passport;
- An 18+ Card;
- Your Birth Certificate; and/or
- A recent bank statement confirming your home address
After verifying your name, date of birth, and address, we may also ask for more information. For example, if the transaction relates to a company or family trust, we may need to verify the identities of other directors, shareholders, trustees or beneficiaries.
Finally, we may need to ask you about the nature of the proposed work you would like Godfreys Law to do for you, or even confirm the source of the money to make sure we comply with the new anti-money laundering law.
What Happens If I Don’t Provide The Information?
Without seeing documents that verify your identity, or prove the nature of the work you would like us to do, Godfreys Law may not be able to act on your behalf. Even if you have been our client for a long time, the law applies to everyone so we will still have to ask you for your information. In short, please don’t be offended by our requests as we are required by law to undertake these checks.
If you have any questions or concerns about the AML/CFT Act, or the information you need to provide, please contact us today on 03 366 7469.
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