What information will they need to get?
As a starting point, the following identity information must be obtained:
- the person’s full name;
- the person’s date of birth;
- if the person is not the client, the person’s relationship to the client;
- any additional information prescribed by regulations.
This can be done several ways but not unlike the banks, they will ask to see your identity documents like your Passport, Driver Licence, utility bill etc.
What is the nature and purpose of the business relationship?
Your real estate agent is also required to get information on the nature and purpose of the proposed business relationship with you. This includes understanding what you are trying to achieve, how much business is expected, and how regular your interactions will be.
Source of funds/wealth
In some cases the Real Estate agent will need to establish the source of the funds for the transaction (i.e. where the funds have actually come from) and source of wealth (i.e. how those funds got there in the first place and how was that money obtained)
Documentation you may be asked for
The below gives an indication of some of the documents your real estate agent may ask you to present in person or as certified documents as part of this process:
Passport, NZ Firearms Licence or NZ Driver Licence with another document such as a bank statement or statement issued by a Government agency. You will also need to provide a document with your residential address (for example, a utility bill)
The Trust Deed and, for trustees, and settlors, the information required for individuals as noted above, together with information regarding the Trust’s source of funds or wealth. Additional information may also be required for beneficiaries. Information regarding source of funds or wealth may also be required.
Details of the company, together with the information for individuals noted above for every individual with more than a 25% shareholding, all individuals with effective control of the company and all individuals acting on behalf of the company. Information regarding source of funds or wealth may also be required.
The above list is not exhaustive and is indicative only. Your real estate agent will assist you with the specific requirements in relation to your situation.
The information you are asked to provide will vary depending on whether you are doing business as an individual or part of a partnership, company, public body, estate or trust.
Businesses are not doing this because they think you are laundering money – they are doing it to help protect everyone and because they are required to under the law.
Ministry of Justice have also provided some information, please see the below link – https://www.keepourmoneyclean.govt.nz/
The above material is not legal advice and all aspects of the AML/CFT legislation and guidance must be considered.