From the 1st of January 2019, real estate agencies will be required to scrutinize AML and CFT risk around buyers and sellers of residential real estate in New Zealand. No exceptions.
- AML = Anti money laundering
- CFT = Countering financing of terrorism
It is the outcome of recent changes to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, which now targets real estate in its legislative program. View it here.
If this news is new to you, check out the public awareness campaign here.
Basically, the legitimacy of the parties to the transaction will be put under a microscope. Are you who you say you are? Are you legally entitled to buy/sell residential property in NZ? Are your motives genuine? Are the funds involved clean? Does anything smell a bit dodgy? (The law calls them red flags)
For agents and lawyers, there are huge implications for cutting corners or breaking the new rules in handling their customers.
Practically, there’s time, cost and some inconvenience that will affect all of us.
So then, here’s some practical advice:
- In a hurry to list your property? Talk to your agent early. Listings cannot go live on the same day they are signed up anymore.
- Owners/buyers – you’ll need legal docs that validate your name, date of birth and address.
- Get organised before making/taking offers.
- Are you a Trust? You’ll probably need a copy of the constitution.
- There will be some extra forms to sign. Allow time and don’t rush the listing process. If in doubt, ask questions.
Want to learn more, check out the Dept of Justice information here.
- What
is money laundering and financing terrorism? Click here - Who does it affect? Click here
- When do I have to provide information? Click here
- What info will I have to provide? Click here
- What happens if I can’t provide the information? Click here
- What will the business do with the information? Click here
So that’s a basic summary. For more detailed information, visit the links above or give me a call.