Anti-Money Laundering (AML) and Real Estate Compliance in New Zealand
Money laundering remains a significant threat in New Zealand. Recent figures note that approximately NZD 1.3 billion is funnelled through the country's financial system each year, primarily stemming from sources like drug trafficking and fraud. Criminals exploit legitimate businesses, such as real estate, to disguise illicit proceeds, making detection more difficult and emboldening criminal activity.
To address this challenge, New Zealand introduced the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) framework through legislation enacted in 2009. This Act mandates that covered entities implement robust internal policies and controls to deter money laundering and terrorism financing.
Beginning in June 2013, the first phase of the AML/CFT regime came into force, applying to financial institutions and casinos. Subsequently, from 1 January 2019, the scope expanded to include non-financial sectors such as real estate agents, lawyers, law firms, and accountants, bringing real estate operations squarely under the AML/CFT obligations.
Under the Act, real estate agencies are required to gather and verify information from new and existing clients, as well as people connected with them. This process, known as customer due diligence (CDD), confirms your identity and ensures compliance with the law. By regulation, services cannot be provided until this verification is complete.
When engaging with a real estate agency, you will be asked to provide:
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your full legal name
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your date of birth
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your residential address
To confirm these details, documents such as a passport or driver’s licence will be required, along with proof of address (for example, a recent bank statement or utility bill). Where the transaction involves a company or trust, further information will be needed about the entity and the people associated with it. Such as directors, shareholders, trustees, or beneficiaries. In some cases, additional information may also be requested.
Please contact us if you have any questions or need any support understanding your responsibilities under the Act.