If you've seen the film The Wolf of Wall Street, you'll be familiar with the concept of money laundering – an illegal process where 'dirty money' received from criminal activities is passed through legitimate businesses and made 'clean.'
In response to a growing number of laundering incidents in New Zealand, the government has made changes to the law, which now affect accountants and small businesses like yours. As of 1 October 2018, we're required to put new preventative measures in place to help tackle money laundering and financing of terrorism.
What does this mean for you?
We are going to be asking you for more information in order to confirm your identity as part of our customer due diligence process. While this will only apply to new clients from 1 October 2018, it's likely that we will also need to ask this of our current clients in the near future.
We might also need to ask you for more information about your business than what we have in the past, especially if it involves large cash transactions ($10,000 or more in one transaction or international "wire transfers" of $1,000 or more).
For more information, please follow the link for the Justice Department's commentary.