AML

What is AML? 

AML stands for Anti-Money Laundering. From 1 January 2019, Anti-Money Laundering and Countering Financing of Terrorism (AML) laws have been extended to apply to real estate agents. This legislation has actually been in place since 2013 and already applies to banks and other financial institutions in New Zealand, as well as lawyers and accountants - as the services they provide can be used to launder money. 

How does this affect me?

AML legislation says that before we can do business with you, real estate agents must assess the risk they may face from the actions of money launderers and people who finance terrorism and to identify potentially suspicious activity.

To make that assessment, we must obtain and verify information on a range of things. This is part of what the AML legislation calls “customer due diligence” (CDD). CDD requires us to undertake certain background checks before listing your property. We are required to carry out CDD on both new and existing clients.

We will need to obtain and verify certain information from you to meet these legal requirements. This information includes:

• your full name; and
• your date of birth; and
• your address.

To verify your identity, we will need to see documents such as your passport, driver’s licence or birth certificate. To guard against identity theft, we will need to verify that the photo on your identity document (ie driver's licence or passport) is actually you. As most of our clients will meet their agent face to face, this is easily done, but if a face to face meeting isn't possible (for example if you live out of town) then other options are available including getting your identity verified by a real estate agent, lawyer, JP or notary in your local town.

To verify your address, we will need to see documents that show your current residential address, such as a current bank statement, rates statement or utility bill. To make the process easier, we can also use electronic verification – which is where we confirm your address using electronic databases instead of requiring you to provide copies of documents. We use a third party electronic verification company called RealYou to carry out our electronic verification checks. 

In some cases, we may also need to ask you for further information. We will need to ask you about the nature and purpose of the proposed work you are asking us to do for you. Information regarding the source of funds / source of wealth for a transaction may also be necessary to meet our legal requirements for some clients, such as trusts and companies.

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