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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

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

20: Simplified customer due diligence: verification of identity requirements

You could also call this:

"Checking who you are when dealing with a company"

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

When you deal with a company, they need to check who you are and if you can make decisions for someone else. They must do this check according to how risky the situation is, so they know who you are and that you have permission to act for the other person. You can find more information about this in section 18. The company must do the identity check before they start working with you or before you do a one-off transaction with them. They need to make sure they know who you are and that you have the right to act for the other person. The company can use a form or document you give them to check if you have the right to act for someone else. The company can rely on the information you provide to them to check your authority to act for someone else. This is so they can be sure you have the right to make decisions for that person. They do this to follow the rules and keep everything safe and fair.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140859.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rules
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Part 2AML/CFT requirements and compliance
Customer due diligence: Simplified customer due diligence

20Simplified customer due diligence: verification of identity requirements

  1. A reporting entity must, according to the level of risk involved, verify the identity of a person acting on behalf of a customer and that person's authority to act for the customer so that it is satisfied it knows who the person is and that the person has authority to act on behalf of the customer.

  2. Verification of identity must be carried out before the business relationship is established or the occasional transaction or activity is conducted or the person acts on behalf of the customer.

  3. For the purposes of verifying a person's authority to act in the circumstances described in section 18, a reporting entity may rely on an authority provided in an application form or other document provided to the reporting entity that shows a person's authority to act or transact on an account.

Notes
  • Section 20(2): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).