UNDERSTANDING AML – ANTI-MONEY LAUNDERING
What is AML?
AML stands for Anti-Money Laundering. Since 2013, New Zealand law has required certain industries to help identify and prevent criminal activity, including money laundering and the funding of terrorism. Initially applying to banks, financial service providers, lawyers, and accountants, the law was extended to include real estate agencies from 1 January 2019 due to the potential misuse of property transactions.
Customer Due Diligence (CDD)
Before we can act on your behalf in a property transaction, we are legally required to verify your identity and confirm you're using our services for the intended purpose – not for illegal purposes. This process is known as Customer Due Diligence (CDD), and it applies whether you’re a new client or someone we’ve worked with previously.
What Will You Need to Provide?
To complete CDD, we are required to obtain your full name, date of birth, and current address. To show evidence of this we will ask you to provide photo ID such as a driver’s license or passport. Where possible, we’ll verify this electronically which allows for a quick and easy onboarding experience. Alternative arrangements can be made by simply talking to you licensed salesperson.
We work with the AML Hub to handle ID verification. For most clients, this is a quick process. However, if your situation involves a trust or overseas entity, further details may be required.
Trusts and Companies
If your property is held in a Family Trust or a company, we must gather information about all the individuals associated —such as trustees, directors, shareholders, and beneficiaries. This ensures transparency and prevents misuse by those seeking to hide behind corporate structures. We’ll provide you with clear instructions on what’s needed.
Source of Funds or Wealth
If your property is held in a trust—we will need to ask for information on your source of wealth. This relates to how the funds were acquired or the origin of your wealth. We aim to make this step as straightforward as possible and will provide you with clear instructions on what is needed.
If You’re Unable to Provide Information
Unfortunately, if the required details cannot be supplied, we won’t be able to proceed with any services.
If you have questions or need help navigating the AML requirements, our team is here to assist.
In accordance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and associated regulations.