a customer:

any beneficial owner of a customer:

any person acting on behalf of a customer.

in the circumstances described in section 14, at least standard customer due diligence:

in the circumstances described in section 18, at least simplified customer due diligence:

in the circumstances described in section 22, enhanced customer due diligence.

the basis of documents, data, or information issued by a reliable and independent source; or

any other basis applying to a specified situation, customer, product, service, business relationship, or transaction prescribed by regulations.

if the reporting entity establishes a business relationship with a new customer:

if a customer seeks to conduct an occasional transaction or activity through the reporting entity:

if, in relation to an existing customer, and according to the level of risk involved,—

any other circumstances specified in subsection (2) or in regulations.

the person’s full name; and

the person’s date of birth; and

if the person is not the customer, the person’s relationship to the customer; and

the person’s address or registered office; and

the person’s company identifier or registration number; and

any information prescribed by regulations.

take reasonable steps to satisfy itself that the information obtained under section 15 is correct; and

according to the level of risk involved, take reasonable steps to verify any beneficial owner’s identity so that the reporting entity is satisfied that it knows who the beneficial owner is; and

if a person is acting on behalf of the customer, according to the level of risk involved, take reasonable steps to verify the person’s identity and authority to act on behalf of the customer so that the reporting entity is satisfied it knows who the person is and that the person has authority to act on behalf of the customer; and

verify any other information prescribed by regulations.

it is essential not to interrupt normal business practice; and

money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring or (if the reporting entity is not a financial institution) through other appropriate risk management procedures; and

verification of identity is completed as soon as is practicable once the business relationship has been established.

information on the nature and purpose of the proposed business relationship between the customer and the reporting entity; and

sufficient information to determine whether the customer should be subject to enhanced customer due diligence.

it establishes a business relationship with one of the customers specified in subsection (2); or

one of the customers specified in subsection (2) conducts an occasional transaction or activity through the reporting entity; or

a customer conducts a transaction or obtains a product or service specified in regulations through the reporting entity.

a listed issuer (within the meaning of section 6(1) of the Financial Markets Conduct Act 2013) that is the issuer of quoted voting products (within the meaning of that Act):

a public service agency as defined in section 5 of the Public Service Act 2020:

a local authority, as defined in section 5(2) of the Local Government Act 2002:

the New Zealand Police:

a State enterprise (within the meaning of section 2 of the State-Owned Enterprises Act 1986) and a new State enterprise (as listed in Schedule 2 of that Act):

a body that—

a person licensed to be a supervisor or statutory supervisor under the Financial Markets Supervisors Act 2011, when the person acts for itself:

a trustee corporation, within the meaning of section 2(1) of the Administration Act 1969, when the trustee corporation acts for itself:

a Crown entity, as defined in section 7(1) of the Crown Entities Act 2004:

an organisation named in Schedule 4 of the Public Finance Act 1989:

a company named in Schedule 4A of the Public Finance Act 1989:

a government body that—

a registered bank within the meaning of section 2(1) of the Reserve Bank of New Zealand Act 1989:

a licensed insurer within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010:

a company, or a subsidiary (within the meaning of section 5(1) of the Companies Act 1993) of that company,—

any other entity or class of entities specified in regulations.

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

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).

the person’s full name; and

the person’s date of birth; and

the person’s relationship to the customer; and

any information prescribed by regulations.

if the reporting entity establishes a business relationship with a customer that is—

if a customer seeks to conduct an occasional transaction or activity through the reporting entity and that customer is—

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:

when a reporting entity considers that the level of risk involved is such that enhanced due diligence should apply to a particular situation:

any other circumstances specified in section 22A or regulations.

it establishes a business relationship with a customer who it has determined is a politically exposed person; or

a customer who it has determined is a politically exposed person seeks to conduct an occasional transaction or activity through the reporting entity.

it establishes a business relationship with a customer that involves new or developing technologies, or new or developing products, that might favour anonymity; or

a customer seeks to conduct an occasional transaction or activity through the reporting entity that involves new or developing technologies, or new or developing products, that might favour anonymity.

that the reporting entity concerned (other than a high-value dealer) is required to report to the Commissioner under section 40; and

that is not otherwise exempt from the customer due diligence requirements or from all the requirements of the Act; and

that is conducted, or sought to be conducted,—

information relating to the source of the funds or the wealth of the customer; and

the additional information referred to in subsection (2) and any additional information prescribed by regulations.

in the case of a trust other than a trust to which paragraph (b) applies, the name and the date of birth of each beneficiary of the trust:

in the case of a customer that is a discretionary trust or a charitable trust or a trust that has more than 10 beneficiaries, a description of—

conduct the verification of identity requirements for standard customer due diligence set out in section 16; and

according to the level of risk involved, take reasonable steps to verify the information obtained under section 23(1)(a); and

verify any other information prescribed by regulations.

it is essential not to interrupt normal business practice; and

money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring or (if the reporting entity is not a financial institution) through other appropriate risk management procedures; and

verification of identity is completed as soon as is practicable once the business relationship has been established.

the reporting entity must have senior management approval for continuing the business relationship; and

the reporting entity must obtain information about the source of wealth or funds of the customer or beneficial owner and take reasonable steps to verify the source of that wealth or those funds.

the originator’s full name; and

the originator’s account number or other identifying information that may be prescribed and allows the transaction to be traced back to the originator; and

one of the following:

any information prescribed by section 27A or regulations.

use effective risk-based procedures for handling wire transfers that are not accompanied by all the information specified in subsection (1); and

consider whether the wire transfers constitute a suspicious activity.

verify the originator’s identity so that the reporting entity is satisfied that the information obtained under section 27 is correct; and

verify any other information prescribed by regulations.

gather enough information about the respondent to understand fully the nature of the respondent’s business; and

determine from publicly available information the reputation of the respondent and whether and to what extent the respondent is supervised for AML/CFT purposes, including whether the respondent has been subject to a money laundering or financing of terrorism investigation or regulatory action; and

assess the respondent’s anti-money laundering and countering financing of terrorism controls to ascertain that those controls are adequate and effective; and

have approval from its senior management before establishing a new correspondent banking relationship; and

document the respective AML/CFT responsibilities of the correspondent and the respondent; and

be satisfied that, in respect of those of the respondent’s customers who have direct access to accounts of the correspondent, the respondent―

meet any other requirements prescribed by regulations and that apply to correspondent banking relationships.

the correspondent carries on an activity or business at or through a permanent establishment of the correspondent in a particular country; and

the respondent carries on an activity or business at or through a permanent establishment of the respondent in another country; and

the correspondent banking relationship relates, in whole or in part, to those permanent establishments; and

the relationship is not of a kind specified in regulations; and

the banking services are not of a kind specified in regulations.

take any additional measures that may be needed to mitigate and manage the risk of new or developing technologies, or new or developing products, that might favour anonymity from being used in the commission of a money laundering offence or for the financing of terrorism; and

meet any other requirements prescribed by regulations and that apply to the particular technology or product.

ensure that the business relationship and the transactions relating to that business relationship are consistent with the reporting entity’s knowledge about the customer and the customer’s business and risk profile; and

identify any grounds for reporting a suspicious activity under paragraph (b) of the definition of that term in section 39A.

the type of customer due diligence conducted when the business relationship with the customer was established; and

the level of risk involved.

regularly review the customer’s account activity and transaction behaviour; and

regularly review any customer information obtained under sections 15, 17, 19, 21, 23, 25, 26, 27, 29, and 30, or, in relation to an existing customer, any customer information the reporting entity holds about the customer; and

anything prescribed by regulations.

rely on another member of the group (member B) to conduct any customer due diligence procedures required for customer due diligence under this Act or regulations as long as—

adopt that part of an AML/CFT programme of another member of the group that relates to record keeping, account monitoring, ongoing customer due diligence, and annual reporting and share and use the procedures, policies, and controls relating to those parts of the programme subject to any conditions prescribed by regulations:

use another member of the group’s risk assessment if that risk assessment is relevant to member A’s business:

make a suspicious activity or prescribed transaction report on behalf of any other member or all members of the designated business group.

the person being relied on is either—

the person has a business relationship with the customer concerned; and

the person has conducted relevant customer due diligence procedures to at least the standard required by this Act and regulations and has provided to the reporting entity—

the person consents to conducting the customer due diligence procedures for the reporting entity and to providing all relevant information to the reporting entity; and

any other conditions prescribed by regulations are complied with.

the reporting entity is acting in good faith when relying on a third party; and

the reporting entity has reasonable cause to believe the reporting entity that is relied on has conducted relevant customer due diligence procedures to at least the standard required by this Act and regulations; and

the reporting entity being relied on is an approved entity or is within an approved class of entities; and

the conditions (if any) prescribed by regulations are complied with.

identity or verification information received for the purposes of section 32(1)(a); or

information received for the purposes of section 32(1)(b).

it may use identity and verification information received for the purposes of section 32(1)(a) in a suspicious activity report:

it may disclose information for the purposes of section 32(1)(b) to another member of the designated business group unless such disclosure is likely to result in a suspicious activity report being filed in an overseas jurisdiction by the member to whom the information is disclosed.

must not establish a business relationship with the customer; and

must terminate any existing business relationship with the customer; and

must not carry out an occasional transaction or activity with or for the customer; and

must consider whether to make a suspicious activity report; and

may disclose the possibility of making a suspicious activity report only to a person referred to in section 46(2).

knowingly or recklessly, set up a facility for a customer on the basis of customer anonymity:

without lawful justification or reasonable excuse, set up a facility for a customer under a false customer name.

that has a number or other identifier allocated to it and the customer and any person who is authorised to act on behalf of the customer in respect of the facility has had their identity verified in accordance with the relevant customer due diligence requirements; or

that has been set up for the Commissioner or for the New Zealand Security Intelligence Service or for the Government Communications Security Bureau for law enforcement purposes.

a shell bank; or

a financial institution that has a correspondent banking relationship with a shell bank.

is incorporated in a foreign country; and

is authorised to carry on banking business in its country of incorporation; and

does not have a physical presence in its country of incorporation; and

is not an affiliate of another corporation that—

the corporation is a subsidiary of the other corporation; or

both corporations are under common effective control; or

both corporations are declared to be affiliated in accordance with regulations (if any).

the corporation carries on banking business at a place in that country; and

banking operations of the corporation are managed and conducted from that place.

be in the prescribed form (if any); and

contain the details prescribed by regulations; and

contain a statement of the grounds on which the reporting entity holds the suspicions referred to in paragraph (b) of the definition of suspicious activity in section 39A; and

be signed by a person authorised by the reporting entity to sign suspicious activity reports (unless the report is forwarded by electronic means); and

be forwarded, in writing, to the Commissioner—

any specified Police employee; or

Police employees of any specified rank or class; or

any Police employee or Police employees for the time being holding any specified office or specified class of offices.

it is a confidential communication (oral or written) (including any information or opinion)—

it is a communication (including any information or opinion) that—

if there is a prima facie case that the communication or information is made or received, or compiled or prepared,—

if, where the information wholly or partly consists of, or relates to, the receipts, payments, income, expenditure, or financial transactions of any specified person, it is contained in (or comprises the whole or a part of) any book, account, statement, or other record prepared or kept by the lawyer in connection with a trust account of the lawyer within the meaning of section 6 of the Lawyers and Conveyancers Act 2006.

the investigation or prosecution of any person for a money laundering offence; or

the enforcement of the Misuse of Drugs Act 1975; or

the enforcement of the Terrorism Suppression Act 2002; or

the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 2009; or

the investigation or prosecution of an offence (within the meaning of section 243(1) of the Crimes Act 1961).

discloses or supplies any information in any suspicious activity report; or

supplies any information in connection with any suspicious activity report, whether at the time the report is made or afterwards.

in respect of the disclosure or supply, or the manner of the disclosure or supply, by that person of the information referred to in that subsection; or

for any consequences that follow from the disclosure or supply of that information.

in respect of the disclosure or supply, or the manner of the disclosure or supply, of that information by that person; or

for any consequences that follow from the disclosure or supply of that information.

if the information was disclosed or supplied in bad faith; or

if, in the case of information disclosed or supplied by a lawyer, there were reasonable grounds to believe that the information was a privileged communication but the lawyer disclosed it or supplied it despite the existence of those grounds.

a person does any act that would constitute, or that the person believes would constitute, an offence against section 243(2) or (3) of the Crimes Act 1961; and

in respect of the doing of that act, that person would have, by virtue of section 244 of the Crimes Act 1961, a defence to a charge under section 243(2) or (3) of that Act; and

that person discloses to any Police employee any information relating to a money laundering transaction (within the meaning of section 243(4) of the Crimes Act 1961), being a money laundering transaction that constitutes (in whole or in part), or is connected with or related to, the act referred to in paragraph (a); and

that information is so disclosed, in good faith, for the purpose of, or in connection with, the enforcement or intended enforcement of any enactment or provision referred to in section 244(a) of the Crimes Act 1961; and

that person is otherwise under any obligation (whether arising by virtue of any enactment or any rule of law or any other instrument) to maintain secrecy in relation to, or not to disclose, that information.

any suspicious activity report:

any information the disclosure of which will identify, or is reasonably likely to identify, any person—

any information that discloses, or is reasonably likely to disclose, the existence of a suspicious activity report.

a Police employee who is authorised by the Commissioner to receive the information; or

the reporting entity’s AML/CFT supervisor; or

an officer or employee of the reporting entity, for any purpose connected with the performance of that person’s duties; or

a lawyer, for the purpose of obtaining legal advice or representation in relation to the matter; or

another member of a designated business group of which the reporting entity is a member, to the extent necessary for the reporting entity to decide whether to make a suspicious activity report.

the performance of person A’s duties; or

obtaining legal advice or representation in relation to the matter.

law enforcement purposes:

the detection, investigation, and prosecution of any offence under the following Acts:

be in the form or forms (if any) prescribed by regulations made under section 153(c); and

contain the following information:

be signed by a person authorised by the reporting entity to sign prescribed transaction reports (unless the report is provided by electronic means other than an electronic copy of the signed report); and

be forwarded, in writing, to the Commissioner—

any specified Police employee; or

Police employees of any specified rank or class; or

any Police employee or Police employees for the time being holding any specified office or specified class of offices.

the nature of the transaction:

the amount of the transaction and the currency in which it was denominated:

the date on which the transaction was conducted:

the parties to the transaction:

if applicable, the facility through which the transaction was conducted, and any other facilities (whether or not provided by the reporting entity) directly involved in the transaction:

the name of the officer or employee or agent of the reporting entity who handled the transaction, if that officer, employee, or agent—

any other information prescribed by regulations.

a period of at least 5 years after the completion of that transaction; or

any longer period that the AML/CFT supervisor for the reporting entity, or the Commissioner, specifies.

a period of at least 5 years after the report is made; or

any longer period that the AML/CFT supervisor for the reporting entity, or the Commissioner, specifies.

a copy of the evidence so used; or

if it is not practicable to retain that evidence, any information as is reasonably necessary to enable that evidence to be obtained.

in the case of records relating to the identity and verification of the identity of a person in relation to establishing a business relationship, a period of at least 5 years after the end of that business relationship; or

in the case of records relating to the identity and verification of the identity of a person in relation to conducting an occasional transaction or activity, a period of at least 5 years after the completion of that occasional transaction or activity; or

in the case of records relating to the identity and verification of the identity of an originator in relation to a wire transfer,—

records that are relevant to the establishment of the business relationship; and

records relating to risk assessments, AML/CFT programmes, and audits; and

any other records (for example, account files, business correspondence, and written findings) relating to, and obtained during the course of, a business relationship that are reasonably necessary to establish the nature and purpose of, and activities relating to, the business relationship; and

any other records prescribed by regulations made under section 153.

be kept either in written form in the English language, or so as to enable the records to be readily accessible and readily convertible into written form in the English language; and

be kept in the manner prescribed by regulations (if any).

in order to comply with the requirements of any other enactment; or

to enable a reporting entity to carry on its business; or

for the purposes of the detection, investigation, or prosecution of any offence.

detect money laundering and the financing of terrorism; and

manage and mitigate the risk of money laundering and financing of terrorism.

the partnership may designate one of the partners as an AML/CFT compliance officer to administer and maintain its AML/CFT programme, irrespective of whether the partnership has or does not have employees; and

the partner so designated must report to another partner designated for the purpose of receiving those reports by the partnership.

vetting—

training on AML/CFT matters for the following employees:

complying with customer due diligence requirements (including ongoing customer due diligence and account monitoring); and

reporting suspicious activities; and

reporting prescribed transactions; and

record keeping; and

setting out what the reporting entity needs to do, or continue to do, to manage and mitigate the risks of money laundering and the financing of terrorism; and

examining, and keeping written findings relating to,—

monitoring, examining, and keeping written findings relating to business relationships and transactions from or in countries that do not have or have insufficient anti-money laundering or countering financing of terrorism systems in place and have additional measures for dealing with or restricting dealings with such countries; and

preventing the use, for money laundering or the financing of terrorism, of products (for example, the misuse of technology) and transactions (for example, non-face-to-face business relationships or transactions) that might favour anonymity; and

determining when enhanced customer due diligence is required and when simplified customer due diligence might be permitted; and

providing when a person who is not the reporting entity may, and setting out the procedures for the person to, conduct the relevant customer due diligence on behalf of the reporting entity; and

monitoring and managing compliance with, and the internal communication of and training in, those procedures, policies, and controls.

the nature, size, and complexity of its business; and

the products and services it offers; and

the methods by which it delivers products and services to its customers; and

the types of customers it deals with; and

the countries it deals with; and

the institutions it deals with; and

any applicable guidance material produced by AML/CFT supervisors or the Commissioner relating to risk assessments; and

any other factors that may be provided for in regulations.

identify the risks faced by the reporting entity in the course of its business; and

describe how the reporting entity will ensure that the assessment remains current; and

enable the reporting entity to determine the level of risk involved in relation to relevant obligations under this Act and regulations.

ensure that the risk assessment and AML/CFT programme are up to date; and

identify any deficiencies in the effectiveness of the risk assessment and the AML/CFT programme; and

make any changes to the risk assessment or AML/CFT programme identified as being necessary under paragraph (b).

a chartered accountant within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996; or

qualified to undertake financial audits.