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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Customer due diligence

11: Customer due diligence

You could also call this:

"Checking who your customers really are"

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

You need to do customer due diligence on a customer, the customer's beneficial owner, and anyone acting for the customer. You must treat a customer as their own beneficial owner if you believe they are not acting for someone else. The type of customer due diligence you do depends on the situation, as described in sections like section 14, section 18, and section 22. You do not need to get documents you already have, unless you doubt they are correct. You still need to keep checking your customers regularly, as said in section 31. Some of these rules do not apply if the services you provide are not covered by this Act, as described in section 6(4).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2333611.

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Part 2AML/CFT requirements and compliance
Customer due diligence

11Customer due diligence

  1. A reporting entity must conduct customer due diligence on—

  2. a customer:
    1. any beneficial owner of a customer:
      1. any person acting on behalf of a customer.

        1. For the purposes of subsection (1)(b), a customer who is an individual and who the reporting entity believes on reasonable grounds is not acting on behalf of another person is to be treated as if he or she were also the beneficial owner unless the reporting entity has reasonable grounds to suspect that that customer is not the beneficial owner.

        2. The type of customer due diligence that must be conducted by a reporting entity is,—

        3. in the circumstances described in section 14, at least standard customer due diligence:
          1. in the circumstances described in section 18, at least simplified customer due diligence:
            1. in the circumstances described in section 22, enhanced customer due diligence.

              1. A reporting entity that is required to conduct customer due diligence in the circumstances described in sections 14, 18, and 22 is not required to obtain or verify any documents, data, or information that it has previously obtained and verified for the purposes of carrying out customer due diligence in accordance with this Act, unless there are reasonable grounds for the reporting entity to doubt the adequacy or veracity of the documents, data, or information previously obtained.

              2. Nothing in subsection (4) affects the obligation to conduct ongoing customer due diligence in accordance with section 31.

              3. Subsections (1) and (3) and sections 14 to 31 do not apply in relation to the provision of services by a reporting entity to a customer that, in relation to that reporting entity, are not, under section 6(4), activities to which this Act applies.

              Notes
              • Section 11(6): inserted, on , by section 9 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).