Show us your ID... at the bank
ID checks could apply when exchanging foreign currency or buying life insurance.
Whether you’re gambling at a casino or visiting the bank, tougher, expect tougher checks on your identity.
More stringent identity checks on a variety of financial activities will precede anti-money laundering legislation – due in force in June 2013.
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 places obligations on New Zealand’s financial institutions and casinos to detect and deter money laundering and terrorism financing.
Money laundering is how criminals disguise the illegal origins of their money.
Under the Act, all companies supervised by the Reserve Bank, the Financial Markets Authority and the Department of Internal Affairs, will have to abide by an ‘identity verification code of practice'.
That outlines acceptable practices for verifying a customer’s name, date of birth and acceptable forms of identification.
The code is not compulsory, but if a company decides to opt out of the code, it must adopt practices that are just as effective to avoid non-compliance.
Examples of financial activities where ID checks could apply include:
• accepting deposits from the public
• making a loan to or for a customer
• issuing a debit or credit card
• supplying goods through a finance lease (other than for consumer products)
• providing remittance services which transfer money or property
• issuing or accepting liability under life insurance policies
• issuing or selling securities and derivatives
• safekeeping or administering cash or liquid securities on behalf of other persons
• exchanging foreign currency.
Georgina Bond
Thu, 01 Sep 2011
Thu, 01 Sep 2011
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Show us your ID... at the bank
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