Anti-Money Laundering laws comes into effect for accountants

The Anti-Money Laundering and Counter Financing of Terrorism Act 2009 (AML/CFT) laws have been operating in New Zealand since 2013. Phase 1 has been in effect for a number of years now and applies to banks, casinos and financial service providers. Phase 2 is an extension of the act and covers lawyers, accountants, conveyancers and real estate agents.

From October 1 2018, accountants are required to comply with this Act.

The Ministry of Justice and other agencies have identified that services provided by accountants are often used by criminals to hold and move assets and funds anonymously, and having AML/CFT measures in place are intended to deter criminals from using the service or help detect them if they do. This means we are required to know our clients by conducting customer due diligence (CDD). We are required to do this for new clients and conduct ongoing due diligence on our existing clients.

Similar to financial institutions, we need to collect information from our clients (and any individuals instructing on behalf of our clients) about their identity and address. To complete the CDD we will need to see the original documents, such as a passport or drivers’ license and other documents we may need to request from you. From time to time, we may request additional information, depending on the type of work involved. During our engagements with you, we will advise the type of information we require. These are legal requires of the AML/CFT.

If you have any queries please contact us. A detailed assessment of these requirements for accountants is also available here.