Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Simplified customer due diligence

18 Circumstances when simplified customer due diligence applies

(1)

A reporting entity may conduct simplified customer due diligence if—

(a)

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

(b)

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

(c)

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

(2)

The following are customers for the purposes of subsection (1):

(a)

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):

(b)

a government department named in Schedule 1 of the State Sector Act 1988:

(c)

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

(d)

the New Zealand Police:

(e)

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):

(f)

a body that—

(i)

corresponds to a State enterprise or a new State enterprise (as defined in paragraph (e); and

(ii)

is located in a country that has sufficient AML/CFT systems:

(g)
[Repealed]

(h)

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

(i)

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

(j)

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

(k)

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

(l)

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

(m)

a government body that—

(i)

corresponds to a government department named in Schedule 1 of the State Sector Act 1988; and

(ii)

is located in an overseas jurisdiction that has sufficient AML/CFT systems:

(n)

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

(o)

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

(p)

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

(i)

whose equity securities are listed in New Zealand or on an overseas stock exchange that has sufficient disclosure requirements; and

(ii)

that is located in a country that has sufficient AML/CFT systems in place:

(q)

any other entity or class of entities specified in regulations.

(3)

A reporting entity may also conduct simplified customer due diligence on a person who purports to act on behalf of a customer when—

(a)

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

(b)

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).

(3A)

Despite subsections (1) to (3), a real estate agent must conduct simplified customer due diligence at the times, and with any other modifications, specified in regulations.

(4)

For the avoidance of doubt, nothing in this subpart requires identification or verification of identity of a beneficial owner of a customer in respect of whom a reporting entity may conduct simplified customer due diligence.

Section 18(1)(b): amended, on 11 August 2017, by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 18(1)(c): amended, on 5 December 2013, by section 6 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).

Section 18(2): replaced, on 11 August 2017, by section 12(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 18(2)(g): repealed, on 28 September 2017, by section 335 of the Intelligence and Security Act 2017 (2017 No 10).

Section 18(3A): inserted, on 11 August 2017, by section 12(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).