Anti-money laundering (AML) requirements were introduced to help detect and discourage money laundering and terrorism financing. Money laundering is when money earned from illegal activity is made to look as though it came from legal sources, to help criminals cover their tracks. The AML law means banks, lenders and other financial businesses have to take specific steps to accurately check a customer’s identity and sometimes their financial activity.
What do banks have to do for AML requirements?
All banks have to do the same checks, but they may have different ways of doing them. They all have to:
Confirm the true identity of new customers
Repeat this for existing customers, in some circumstances
Keep an eye on customer transactions
Report suspicious activity and certain transactions
What do the AML requirements mean for bank customers?
Whenever you…
Open an account
Apply for a loan
Give someone else authority to operate your account
Ask to have a large sum (from something like an investment) paid into a bank account
Want to send or receive money from overseas
You are likely to be asked for…
Photo ID (passport/driver licence)
Proof of address, such as a utility bill with your name and address on it
Confirmation of your Inland Revenue (IRD) number
A bank statement for any account you want large sums paid into
From time to time, a bank may also want to check the AML information they have about you is still up to date.