The new Anti-Money Laundering (AML) regime came into effect for Real Estate companies on the 1st of January 2019. Real Estate companies are deemed reporting entities and must now meet their obligations to the required legislative standards.
AML refers to a set of laws, regulations, and procedures intended to prevent criminals from disguising illegally obtained funds as legitimate income. Though AML laws cover a relatively limited range of transactions and criminal behaviors, their implications are far-reaching.
Real Estate agents are required to verify the identity of their clients (vendors) in accordance with AML/CFT legislation. This is called Customer Due Diligence (CDD).
Customer due diligence is the process of identifying our customers and checking they are who they say they are. This could be individuals, companies, trusts, or other client types like societies and government departments. In practice this means obtaining a customer’s name, photograph on an official document which confirms their identity and residential address and date of birth.
This can be done in several ways, like the banks, we will ask to see identity documents like a Passport, Driver’s Licence or utility bill etc. In some cases, we have obligations to establish source of funds and wealth.
If your real estate agent cannot verify your identity in line with the legislation, they may not be able to act for you.
Further information can be sourced at the Department of Internal Affairs through its website
NEWTON + CO are proud to partner with AML Solutions who are market leaders in NZ having assisted 1,800 clients to date and have been chosen as the preferred solution provider by REINZ because of their end to end and cost-effective AML solutions.
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