New Zealand Legislation: Bills

16 Circumstances when simplified customer due diligence applies

• (1A) A reporting entity may conduct simplified customer due diligence if—

  • (a) it establishes a business relationship with one of the customers specified in subsection (1B); or

  • (b) one of the customers specified in subsection (1B) conducts an occasional transaction through the reporting entity; or

  • (c) a customer conducts a transaction or provides a product or service specified in regulations through the reporting entity.

  (1B) The following are customers for the purposes of subsection (1A):

  • (a) a company that is listed on an exchange registered under Part 2B of the Securities Markets Act 1988:

  • (b) a government department named in Schedule 1 of the State Sector Act 1988:

  • (c) a local authority as defined in section 5 of the Local Government Act 2002:

  • (d) the New Zealand Police:

  • (e) the New Zealand Security Intelligence Service:

  • (f) any other entity or class of entities specified in regulations.

  (2) A reporting entity may also conduct simplified customer due diligence on a person who purports to act on behalf of a customer when—

  • (a) the reporting entity already has a business relationship with the customer at the time the person acts on behalf of the customer; and

  • (b) the reporting entity has conducted one of the specified types of customer due diligence on the customer in accordance with this Act and regulations (if any).

  (3) For the avoidance of doubt, nothing in this subpart requires identification or verification of identity of a beneficial owner of a customer in respect of whom a reporting entity may conduct simplified customer due diligence.