Compliance with AML/CFT Act 2009
Armstrong Murray, along with other law firms in New Zealand, must comply with the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.
These regulations are crucial to prevent illegal activities such as money laundering and financing terrorism from occurring through law firms, even unintentionally.
Risks of Money Laundering and Terrorism Financing
There have been cases in New Zealand where criminals used lawyers’ trust accounts to launder illegally obtained money, converting illicit funds into seemingly legitimate assets like property.
This practice makes it difficult for authorities to trace the true origin of these funds. Law firms have also become channels for funding terrorism, with criminals hiding their identities behind legitimate legal services.
Client Information and Verification Process
To prevent these risks, Armstrong Murray must legally collect detailed information from clients. This involves verifying your identity using documents such as passports, driver’s licences, and proof of address.
We need to understand the nature and purpose of your transactions, gather personal and business-related details, and confirm the source of any funds involved.
We engage First AML, a specialist AML compliance provider, to conduct detailed checks on the source of wealth or funds.
You may be required to provide documentary evidence such as recent financial statements, loan agreements, bank statements, investment statements, or signed copies of sale and purchase agreements.
All data transmitted and stored via First AML is encrypted both in transit and at rest, adhering to industry standards, ensuring your information remains secure and confidential.
Importance of Timely Information
Providing this information promptly is essential, as delays in obtaining these details may affect our ability to act on your behalf. These measures protect our clients, our firm, and help maintain New Zealand’s strong international reputation as a trustworthy and secure place to do business.
Thank you for your understanding and cooperation in meeting these important requirements. If you have any questions or concerns about AML/CFT compliance or how it may affect your interactions with us, please contact us.
This article is brief and general in nature. You should not treat this article as legal advice and should seek professional advice before taking any action in relation to the matters dealt with in this article. Armstrong Murray accepts no liability for losses suffered by any person or organisation who may rely directly or indirectly on this article.
