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 - Prohibitions

37: Prohibitions if customer due diligence not conducted

You could also call this:

"No business with customers if you don't check who they are."

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

If you are a reporting entity and you cannot conduct customer due diligence, you must not start a business relationship with the customer. You must also end any existing business relationship with the customer. You must not do any occasional transactions with the customer. If you cannot conduct customer due diligence, you should think about making a suspicious activity report. You can only tell someone about possibly making a suspicious activity report if they are listed in section 46(2). There is an exception if the activity is not listed in section 6(4) for your type of business.

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 It might be out of date or be missing some parts.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=DLM2140885.

Topics:
Money and consumer rights > Banking and loansBusiness > Industry rulesCrime and justice > Police and safety
Previous

36: Protection of personal information and designated business groups, or

"Keeping Personal Info Safe When Sharing with Businesses"

Next

38: Prohibition on false customer names and customer anonymity, or

"No fake names when opening accounts"

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

37Prohibitions if customer due diligence not conducted

  1. If, in relation to a customer, a reporting entity is unable to conduct customer due diligence in accordance with this subpart, the reporting entity—

  2. must not establish a business relationship with the customer; and
    1. must terminate any existing business relationship with the customer; and
      1. must not carry out an occasional transaction or activity with or for the customer; and
        1. must consider whether to make a suspicious activity report; and
          1. may disclose the possibility of making a suspicious activity report only to a person referred to in section 46(2).

            1. A reporting entity is not prohibited by subsection (1)(a) or (b) from establishing or continuing a business relationship with a customer in respect of an activity that is not specified in section 6(4) in relation to that reporting entity.

            Notes
            • Section 37(1)(c): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 37(1)(d): amended, on , by section 24(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 37(1)(e): amended, on , by section 24(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 37(2): inserted, on , by section 24(3) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).