WHY WE ARE ASKING FOR MORE INOFRMATION?
New Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT law for short). The law reflects New Zealand’s commitment to an international initiative to counter the impact criminal activity has on people and economies around the world. Recent changes to the AML/CFT law means that from 1 October 2018 payroll service provider must also comply with its requirements.
We must do a number of things to help prevent money laundering and terrorist financing (ML/FT), and to help the Police prosecute those involved in this type of criminal activity. Some services that Crystal Payroll offer may be attractive to these types of individuals. Accordingly, the law now requires us to assess the risk of ML/FT in relation to each client, and to identify potentially suspicious activity. To make that assessment, we must obtain and verify information from prospective and existing clients and others. The AML/CFT law calls this “customer due diligence”. Essentially we must take steps to really “know” the individuals who are instructing us.
You will be familiar with the requirements of AML/CFT law if you have recently opened a bank account, or you have purchased appliances or a vehicle using a loan.
WHAT ARE OUR CUSTOMER DUE DILIGENCE OBLIGATIONS?
Customer due diligence requires us to ask questions and collect information about you and various other associated persons, or persons involved in your matter (such as shareholders, directors, trustees or lenders). We must then, according to the level of risk involved in acting for a client, collect documents from independent sources to ensure the information we receive is correct.
We must obtain and verify specified information which includes the full name, date of birth and address of each client and associated person. To confirm these details are correct, we will also need to sight documents such as a passport, a driver’s licence and/or a current bank statement or utility bill.
We must also ask our client for more information about the nature and purpose of the proposed work, and depending on the type of client and/or the answers we receive from them or any associated person, information about the client’s source of funds or wealth.
Because the law applies to everyone, we need to ask for the information even if you have been a client of ours for a long time. We will let you know what information we need, and what documents we require, before we start working on your matter.
WHAT IF YOU CANNOT PROVIDE THE REQUIRED INFORMATION?
If we are unable to obtain the required information from you or any associated person, it is likely we cannot act for you. We appreciate this could be a time consuming and frustrating process, so please urgently contact our Bureau Team who will be undertaking your work if you have any questions, and we will help you through the process.