Good day Everybody,
Each week we try to ensure that you are up to date with what is happening in the Real Estate market as this is what we do - day in and day out. However, unless you are in the process of buying and selling right now you may not be aware of some significant changes that the NZ Government have made that could effect you.
So, in that light, this week we are sharing information around the implementation into Real Estate the Anti-Money Laundering and Countering Financing of Terrorism Act (“the AML/CFT law” for short). The purpose of this legislation is to detect and deter money laundering and the financing of terrorism through ensuring that tax is being paid on financial incomes and that the funds are coming from a legitimate source.
Recent changes to the AML/CFT Act mean that as of the 1st of July 2018, lawyers will be required to comply with its requirements around the purchase of property.
As a result of these changes, lawyers will be required to do a number of things to help combat money laundering, including undertaking background checks before providing services to clients. They will be required to obtain and verify certain information from their clients, including their clients full name, date of birth and address.
Where business concerns a company or trust, information about the people associated with the company or trust (such as directors, shareholders, trustees and beneficiaries) will also be required.
So if you have purchased a property and it is due to settle after 1 July 2018, your solicitor will be asking you for this information.
If you would like to learn more about this, you can click here: Tackling money laundering and terrorist financing
Later in the year the law will come into effect for Vendors.
Of course, if you are thinking of buying or selling please get in touch and we would be more than happy to help you with your Real Estate requirements. Otherwise, we hope you have a safe and enjoyable week ahead!
Unitll next time,
Harcourts Team Uptown