Here is the article in markdown format:
NZ Banks Tighten Customer ID Requirements to Combat Financial Crime
=====================================================
In a bid to prevent money laundering and terrorism financing, all major banks in New Zealand have introduced enhanced customer identification requirements. The changes are part of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, which aims to detect and deter financial crime.
What is the Law?
The law requires banks to collect specific information from customers to verify their identity and address, and in some cases, account activity. This includes asking for additional details when existing customers update their accounts or exhibit suspicious behavior. Banks may also request information about how customers intend to use their products and services.
Protecting New Zealand
The changes are designed to protect New Zealand from financial crime, improve its reputation overseas, and meet international obligations. While the law primarily affects new bank account holders and those with signing authority, it also applies to existing customers who send, receive, or transfer funds.
What is Money Laundering and Terrorism Financing?
Money laundering refers to the process of disguising illegal profits obtained through serious crimes such as drug trafficking, fraud, robbery, and bribery. Terrorist groups also move funds to conceal their source, purpose, and destination. The Anti-Money Laundering and Countering Financing of Terrorism Act requires banks to identify new customers, re-identify existing ones in certain circumstances, monitor transactions, and report suspicious activities.
How Does the Law Affect You?
Customers may experience slight process differences between banks when opening bank accounts or adding signing authority. Banks will ask for specific information to verify identities and addresses, which may take a little more time than before. Customers should be prepared to provide additional details about themselves and their account activity.
Tips for Existing Customers
- Be prepared to provide additional information when updating your account or exhibiting suspicious behavior.
- Understand how the law affects you and your account activity.
What Can You Do If You Have Concerns?
Customers with concerns should contact their bank in the first instance. The Banking Ombudsman can investigate further if necessary. Banks are also available to answer questions about how the law affects customers, while the Ministry of Justice provides information on the Anti-Money Laundering and Countering Financing of Terrorism Act.
Timeline
- All banks were required to comply with the Anti-Money Laundering and Countering Financing of Terrorism Act by June 30, 2013.