Some people will try to avoid using banking services to obstruct a trail of funds as a means to hide their criminal activity. A way to obscure the trail or add an appearance of legitimacy is to use the trust accounts of others professional services.
This is where the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 can help. The government has made changes to the law which requires businesses (known as ‘reporting entities’ under the Act) to put preventative measures in place to help detect and deter money laundering and terrorism financing. These obligations not only enhance the reputations of individual business, but of New Zealand as a safe place in which to do business.
What does this mean for Crystal Payroll?
Crystal Payroll is listed as a reporting entity and is legally required to comply with the AML/CFT Act from 1 October 2018. There are a number of steps we will be taking to ensure that we remain compliant with the Act including development of an AML/CFT programme, following customer due diligence processes, and reporting of any suspicious activity.
What does this mean for our customers?
If Crystal Payroll is handling payments to your employees and/or payments to a third party, we are now required to conduct identity checks on the owner of your business. Under the Act we are required to obtain the following information:
• Full name
• Date of birth
• Address or registered office
• Company identifier or registration number.
We will also check this information against the Companies Register. Whilst these checks may seem a lot more stringent than prior to the Act coming into effect, by verifying your identity you will be helping protect New Zealand businesses from being misused for the purposes of criminal activity. It is important to note that without this verification in place we will not be able to continue handling your payments.
What do you need to do now?
Don’t panic! If Crystal Payroll requires verification of identity for the owner of your business, you can expect to receive an email from us informing you of the next steps. In order for us to obtain the information listed above, you will be required to either send us a copy of your passport (witnessed by a Justice of the Peace, local MP, accountant, or police officer) or you pop into our office where we can take a copy for you and witness in person. If you do not have a passport we can also accept a copy of your driver’s licence and your birth certificate.
Please note: All personal information collected under the AML/CFT Act will be handled in accordance with The Privacy Act 1993.
For more information regarding the AML/CFT Act please click here