New Zealand Legislation: Bills

22 Enhanced customer due diligence: verification of identity requirements

• (1) A reporting entity must—

  • (a) conduct the verification of identity requirements for standard customer due diligence set out in section 14; and

  • (b) according to the level of risk involved, take reasonable steps to verify the information obtained under section 21(a); and

  • (c) verify any other information prescribed by regulations.

  (2) Except as provided in subsection (3), a reporting entity must carry out verification of identity before establishing a business relationship or conducting an occasional transaction.

  (3) Verification of identity may be completed after the business relationship has been established if—

  • (a) it is essential not to interrupt normal business practice; and

  • (b) money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring; and

  • (c) verification of identity is completed as soon as is practicable once the business relationship has been established.