AML/CFT stands for anti-money laundering and countering financing of terrorism and new rules are contained in the AML/CFT legislation that comes into force on 30 June 2013.
Our government has signed up to international AML/CFT protocols and this will result in greater emphasis being placed on proving the identity and residence of all those who hold investments, open bank accounts or borrow money. Money laundering and terrorism financing are global problems. A recent report indicated money laundering via New Zealand companies is around $1.5 billion a year and globally, the figure is estimated to be between US$590 billion and US$1.6 trillion.
The main implications for you are:
- We and all financial institutions you deal with will want to have certified copies of your photographic identification – preferably a passport, NZ drivers licence or firearms license. You will also need to prove your place of residence and this can be achieved via provision of rates demands, utility bills and bank statements.
- You will need to provide these forms of identification whenever you want to open a bank account, make a new investment, withdraw money, obtain a loan etc. It is recommended you have copies of these documents at home or electronic versions on your computer so they are quick and easy to print out.
- If you invest via a family trust, then we need to have proof of identity for all the trustees plus a copy of the trust deed showing who the beneficiaries are, or classes of beneficiaries are.
- For those of us who no longer have a passport or drivers license, then proving one’s identity becomes a little more onerous. You will need to have a copy of your birth certificate plus obtain an ‘18 Plus card’ which will have a photo of you on it. We can supply you with an application form and once completed, you take it to a Post Shop together with two passport photos and the $20 application fee.
This legislation is not something you or we can avoid. It is just going to become part of normal life and we will work with you to ensure it is as painless as it can be. Contact you Milestone adviser if you require further information on the AML/CFT legislation.