For any business owner selling their business it is a legal requirement to complete AML.

Anti Money Laundering and Countering Financing of Terrorism Act 2009.

As of 1 January 2019 the Anti Money Laundering and Countering Financing of Terrorism Act 2009 came into place for all real estate licensees in New Zealand.

This Act demonstrates New Zealand’s commitment to the international initiative to counter the impact of criminal activity within the global community. You can review the Act html via the New Zealand Government’s legislation website.

The Act sets out requirements for Real Estate licensees to follow. They are obliged to now assess the level of risk they face when providing their services as these services may be attractive to those involved in criminal activity and can provide a way to “legitimise” otherwise illegitimate transactions. The Act requires Real Estate licensees to assess risks and identify any potential suspicious activity or transactions.

Real Estate licensees must now obtain and verify relevant documents from all clients.  Further, Real Estate licensees must perform “Customer Due Diligence” on all clients.

To do so we are required to undertake certain background checks on all of our clients before providing our services. The Act requires us to take “reasonable steps” to ensure that we “know our clients” and in order to comply, we are required to ask for and verify a range of documents from you.

We will require the following;

  • Your full name; and
  • Your date of birth; and
  • Your address.

To confirm that information, we will require you to provide us with documents such as your current and valid passport, birth certificate and documents proving your residential address such as a current bank statement or utility invoice no older than 12 months.

Additional information will be required if you are a company or trust entity as we are required to obtain and verify information on all people associated with those entities (such as directors, shareholders, trustees and beneficiaries). We may also need confirm the source of funds, and information confirming the source of wealth. If you are unable to provide New Zealand Business Brokers with the required information and documents, we will not be able to act for you. Before engagement New Zealand Business Brokers will inform you of the information and documents required.