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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

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

24: Enhanced customer due diligence: verification of identity requirements

You could also call this:

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

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

You must verify someone's identity when you start a business relationship with them. You do this by following the rules set out in section 16. You also take reasonable steps to verify the information you get from them. You usually do this before you start the business relationship. But you can do it after if it's essential for your business and you can manage the risks. You must verify their identity as soon as you can after the relationship starts. You also verify any other information that the regulations say you must. You do this according to the level of risk involved and the information you get from them, as outlined in section 15(d) and section 23(1)(a).

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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=DLM2140864.

Topics:
Money and consumer rights > Consumer protectionBusiness > Starting a businessBusiness > Industry rules
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23: Enhanced customer due diligence: identity requirements, or

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

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25: Enhanced customer due diligence: other requirements, or

"Extra checks when dealing with some customers"

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

24Enhanced customer due diligence: verification of identity requirements

  1. A reporting entity must—

  2. conduct the verification of identity requirements for standard customer due diligence set out in section 16; and
    1. according to the level of risk involved, take reasonable steps to verify the information obtained under—
      1. section 15(d); and
        1. section 23(1)(a); and
        2. verify any other information prescribed by regulations.

          1. Except as provided in subsection (3), a reporting entity must carry out verification of identity before establishing a business relationship or conducting an occasional transaction or activity.

          2. Verification of identity may be completed after the business relationship has been established if—

          3. it is essential not to interrupt normal business practice; and
            1. money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring or (if the reporting entity is not a financial institution) through other appropriate risk management procedures; and
              1. verification of identity is completed as soon as is practicable once the business relationship has been established.

                Notes
                • Section 24(1)(b): replaced, on , by section 11 of the Statutes Amendment Act 2025 (2025 No 74).
                • Section 24(2): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
                • Section 24(3)(b): amended, on , by section 16 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).