Regulatory Alerts2024-05-10
Customer Due Diligence: Trusts Guideline
New Zealand AML/CFT supervisors have issued this guideline to require reporting entities to conduct comprehensive standard and enhanced customer due diligence on trusts under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. It mandates the verification of trust identity, ownership structures, and all beneficial owners, while introducing stricter documentation requirements for settlors and protectors effective 1 June 2024. The guideline enforces a risk-based framework that compels entities to obtain and verify the source of funds or wealth for every trust, applying enhanced due diligence and robust verification for complex, high-risk, or suspicious arrangements.
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