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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Customer due diligence - Standard customer due diligence

14: Circumstances when standard customer due diligence applies

You could also call this:

"When to check customers carefully to prevent money laundering"

Illustration for Anti-Money Laundering and Countering Financing of Terrorism Act 2009

You need to do standard customer due diligence in certain situations. You do this when you start a new business relationship with a customer. You also do this when a customer wants to do a one-off transaction. You must do standard customer due diligence if an existing customer's business relationship with you changes a lot. You also do this if you do not have enough information about the customer. There are other situations where you must do standard customer due diligence, which are specified in regulations or in subsection (2). If you find out an existing account is anonymous, you must do standard customer due diligence as soon as possible. However, if you are a real estate agent, you must do standard customer due diligence at the times and in the ways specified in regulations.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140852.

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rules
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"How to check someone's identity using trusted documents or information"

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15: Standard customer due diligence: identity requirements, or

"Knowing Who You Are: Checking Identities to Stop Money Laundering"

Part 2AML/CFT requirements and compliance
Customer due diligence: Standard customer due diligence

14Circumstances when standard customer due diligence applies

  1. A reporting entity must conduct standard customer due diligence in the following circumstances:

  2. if the reporting entity establishes a business relationship with a new customer:
    1. if a customer seeks to conduct an occasional transaction or activity through the reporting entity:
      1. if, in relation to an existing customer, and according to the level of risk involved,—
        1. there has been a material change in the nature or purpose of the business relationship; and
          1. the reporting entity considers that it has insufficient information about the customer:
          2. any other circumstances specified in subsection (2) or in regulations.

            1. For the purposes of subsection (1)(d), as soon as practicable after a reporting entity becomes aware that an existing account is anonymous, the reporting entity must conduct standard customer due diligence in respect of that account.

            2. Despite subsections (1) and (2), a real estate agent must conduct standard customer due diligence at the times, and with any other modifications, specified in regulations.

            Notes
            • Section 14(1)(b): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 14(1)(d): replaced, on , by section 10(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 14(2): inserted, on , by section 10(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 14(3): inserted, on , by section 10(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).