New Zealand Law Society - LINZ advises on "high risk" element in Landonline A&I Forms

LINZ advises on "high risk" element in Landonline A&I Forms

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Land Information New Zealand (LINZ) says it has received queries from customers about the question "Is the transaction high risk?" when generated a Private Individual or Private Corporate A&I form in Landonline.

LINZ says that at present is "No" is ticked, a sentence about the number of years the client is previously known appears. If "Yes" is ticked, a statement about a connecting document and file note appears.

"We have not changed the guidance or the requirements for High Risk transactions - see LINZG20775 Authority and Identity Requirements for E-Dealing Guideline 2018 for the detailed requirements. 

"The options that now appear in Landonline relate to the two alternative ways of satisfying practitioner obligations when the transaction is, on the face of it, High Risk as defined in s4.2.1:

  1. “No” may be ticked if the client is personally known and you consider this mitigates an otherwise high risk transaction, so that it is no longer high risk (see s4.1.1.1 for further guidance).  
  2. Alternatively, “Yes” may be ticked for High Risk transactions where the high risk is being mitigated via connecting documents (see s4.3) and any additional actions taken to independently verify the identity of the client, that must be recorded in a file note (see s4.2.2)."

LINZ says if the transaction is not, on the face of it, High Risk (eg, a Transmission or Variation of Mortgage) – "you should tick “No” and, because it’s a mandatory field, enter a number in the years box.  However, you can then remove the sentence and number of years from the A&I form by editing the form in the usual way.  Or, by putting a line through the wording if you have displayed it on the printed form."

LINZ says it is looking at ways to make this clearer on the forms and will provide a further update as soon as possible.

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