The New Zealand Law Society has updated a Practice Briefing on the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT) to aid lawyers and law firms with the rollout of the Act to lawyers.
This became reality on 1 July 2018 and the Law Society says it has become aware of a number of issues and concerns among lawyers since.
The Act requires “reporting entities” to conduct customer due diligence (CDD) on their customers, their customers’ beneficial owners and anyone acting on behalf of their customers.
Law firms carrying out certain activities became reporting entities on 1 July and are now required to conduct CDD in accordance with the Act.
The Practice Briefing provides information on the wording which lawyers may use when certifying CDD documentation for their own clients or for the customers of other reporting entities, such as banks. It is intended to provide guidance in an area where there are few definitive procedures.
The Briefing is divided into several areas, such as trusted referees, wording to use on certification by trusted referees, acceptance by reporting entities and preparation of certification stamps.