fbpx

Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009

Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009

Phase 2 of the Anti Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 has kicked in on 1st October 2018 which means that a broader spectrum of the finance world will be complying to the new laws including accounting firms. Do not fret. We will break it down for you!

What does it mean for our customers?

The most obvious changes for the customers would be the introduction of a process known as customer due diligence (CDD) also known as Know Your Customer (KYC). For all new customers, the law requires us to ask for proof of identity e.g., passport with photograph or NZ issued Driver’s Licence and proof of residential address e.g., a utility bill.

For existing customers, CDD will be required when there is a cash transaction of over $ 10,000, or an international wire transfer of over $1,000 and/or when there is a substantial change in the business relationship. Please bear with us if we ask for more details when these situations arise.

What does it mean for your accountant?

Accountants are required to report any suspicious activities and file annual report with the Department of Internal Affairs (DIA). Our AML records will have to be audited every two years.

Why do we need AML/CFT Act?

In a nutshell, about $ 1.35 billion dollars from the illegal businesses of drugs and other fraudulent transactions are laundered through New Zealand businesses every year.

Hence, it becomes imperative for the government to impose restrictions in order to curb such activities and make it harder for criminals to profit from illegal businesses including terrorist activities. This will also help maintain New Zealand’s image as one of the least corrupt nations in the world and a safe place to do business.

There is nothing to worry about people! Let’s help keep New Zealand clean and green! So please comply with a smile when we ask for…

“Licence and registration please!”

2018-11-01T01:53:33+00:00 October 31st, 2018|