Plain language law

New Zealand law explained for everyone

Anti-Money Laundering and Countering Financing of Terrorism Act 2009

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

23: Enhanced customer due diligence: identity requirements

You could also call this:

"Checking who a customer is and where their money comes from to prevent bad things"

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

You need to know some things about a customer when a reporting entity does enhanced customer due diligence. The reporting entity must get the information required under section 15 and some additional information. This includes information about where the customer's money comes from and their wealth. You also need to know more information about the customer, which is set out in regulations. If the customer is a trust, the reporting entity must get the name and date of birth of each beneficiary. But if the trust has more than 10 beneficiaries, or is a certain type of trust, the reporting entity only needs a description of the types of beneficiaries. For a charitable trust, the reporting entity needs to know what the trust is trying to achieve. The reporting entity must get this information to help prevent money laundering and financing of terrorism.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140863.

Topics:
Money and consumer rights > Banking and loansCrime and justice > Police and safety
Previous

22A: Enhanced customer due diligence required for certain activities requiring suspicious activities report, or

"Do extra checks when you suspect something fishy and have to report it"

Next

24: Enhanced customer due diligence: verification of identity requirements, or

"Check someone's identity when starting a business with them"

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

23Enhanced customer due diligence: identity requirements

  1. A reporting entity must, in relation to a person referred to in section 11(1), obtain the information required under section 15 and the following additional information:

  2. information relating to the source of the funds or the wealth of the customer; and
    1. the additional information referred to in subsection (2) and any additional information prescribed by regulations.

      1. For the purposes of subsection (1)(b), a reporting entity must obtain,—

      2. in the case of a trust other than a trust to which paragraph (b) applies, the name and the date of birth of each beneficiary of the trust:
        1. in the case of a customer that is a discretionary trust or a charitable trust or a trust that has more than 10 beneficiaries, a description of—
          1. each class or type of beneficiary:
            1. if the trust is a charitable trust, the objects of the trust.

            Notes
            • Section 23(1)(b): replaced, on , by section 15(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 23(2): inserted, on , by section 15(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).