New Zealand Legislation: Bills
Bills are proposed Acts
(1) A reporting entity must conduct enhanced customer due diligence in accordance with sections 21 and 22 in the following circumstances:
(aa) if the reporting entity establishes a business relationship with a customer that is—
(i) a trust or another vehicle for holding personal assets:
(ii) a non-resident customer from a country that has insufficient anti-money laundering and countering financing of terrorism systems or measures in place:
(iii) a company with nominee shareholders or shares in bearer form:
(ab) if customer seeks to conduct an occasional transaction through the reporting entity and that customer is—
(i) a trust or another vehicle for holding personal assets:
(ii) a non-resident customer from a country that has insufficient anti-money laundering and countering financing of terrorism systems or measures in place:
(iii) a company with nominee shareholders or shares in bearer form:
(b) if a customer seeks to conduct, through the reporting entity, a complex, unusually large transaction or unusual pattern of transactions that have no apparent or visible economic or lawful purpose:
(c) when a reporting entity considers that the level of risk involved is such that enhanced due diligence should apply to a particular situation:
(d) any other circumstances specified in regulations.
(2) A reporting entity must conduct enhanced customer due diligence in accordance with section 23 if—
(a) it establishes a business relationship with a customer who it has determined is a politically exposed person; or
(b) a customer who it has determined is a politically exposed person seeks to conduct an occasional transaction through the reporting entity.
(3) A reporting entity must conduct enhanced customer due diligence in accordance with sections 24 and 25 if it is an ordering institution, an intermediary institution, or a beneficiary institution in relation to a wire transfer.
(4) A reporting entity must conduct enhanced customer due diligence in accordance with section 26 if it has, or proposes to have, a correspondent banking relationship.
(5) A reporting entity must conduct enhanced due diligence in accordance with section 27 if—
(a) it establishes a business relationship with a customer that involves new or developing technologies, or new or developing products, that might favour anonymity; or
(b) a customer seeks to conduct an occasional transaction through the reporting entity that involves new or developing technologies, or new or developing products, that might favour anonymity.