Summary of AML Requirements - Inv & Gore

Summary OF AML REQUIREMENTS CONTACT: AML Comp[iance Officer 03 214 4080 [email protected]

What is AML? HOW DOES IT AFFECT ME? The Anti-Money Laundering and Countering Financing HOW AM I AFFECTED BY THE NEW LEGISLATION? of Terrorism Act 2009 – or “AML”, as it’s more commonly known is part of a worldwide initiative to crack down Since 1st January 2019 all Real Estate companies on illegal activities, including money laundering and have been obliged to seek specific information from terrorism. our clients before we are able to list their property or business to sell. The information is also required from New Zealand is held in high regard internationally our clients who have commercial property they wish as one of the least corrupt countries, and also a to lease. great place to do business. The new rules have been introduced to safeguard that reputation and to play If your property or business is held in the name of our part in combating global crime. a company, trust, or has overseas ownership we’ll need specific information about the entity in question Criminals try to use the likes of banks, lawyers, including the people associated with it - such as accountants and real estate agents to help hold and directors and shareholders, trustees and beneficiaries. move assets. The new legislation is aimed at deterring We will also be required to ask you to confirm the criminals in the first place, and, secondly, detecting source of funds for such entities. them if they try. We must take reasonable steps to ensure the information you provide us about yourself is true and correct. 21

GET IN TOUCH For any queries, please do not hesitate to cntact your agent, or our AML/CFT Compliance team by email at [email protected] or phone 03 214 4080 AML Identity verification can take days and sometimes weeks if a Trust or Company is involved, or where parties reside overseas. Below is an indication of some of the documents Harcourts Holmwood may ask you to present in person. Documents must be originals. - Proof of ID Documents must be current, valid and include your signature. - Proof of Address documents must be dated within the last 12 months. - Documents can be verified by your Real Estate Agent, or - We can also accept copies that have been certified by a trusted referee (i.e. Solicitor, Accountant, Justice of the Peace). Certified copies must be dated 3 months preceding date of presentation. Please contact us for further information. Please note that the original certified documents (wet ink copies) must be posted to the AML Team, (Harcourts, PO Box 138, Invercargill 9840). INDIVIDUALS TRUSTS COMPANIES - Passport, NZ Firearms - Full copy of the Trust Deed and any - The Key Individuals that require Licence; or subsequent Deeds of Retirement and verification will vary depending Appointment. on the structure of your Compa- - NZ Driver Licence with ny, please contact us to confirm. secondary document - Proof of ID and Address documents such as a bank statement (as detailed in ‘Individuals’) for all - Proof of ID and Address docu- or Credit Card, EFTPOS, trustees, individuals with the power to ments (as detailed in ‘Individuals’) Debit Card (with matching alter the Trust Deed, persons acting will be required for the relevant signature and embossed on behalf of the Trust, authorised Key Individuals. name). signatories; and individuals who can act as a trustee on behalf of a trustee - Examples of Key Individuals we - Proof of Address docu- company. will need to identify are Directors; ment with your residential Shareholders with greater than address (for example, a - Information and documents to verify 25% interest in the Company; utility bill, bank statement, the Trust’s source of funds or wealth Persons acting on behalf of the IRD Statement). are required. This refers to how the Company; Authorised Signatories; Trust obtained its wealth, or depend- Persons who exercise effective ing on the purpose of the Trust, how control over the Company. the Settlor or Trustee obtained their wealth. A PDF fact sheet on Source of Wealth and Funds documents is available on request. Note: The above list is not exhaustive and is indicative only, we have PDF fact sheets available with comprehensive information. Please ask your Agent for copies if required. The material and information contained herein is for general information purposes only and is not intended to form professional legal advice. HARCOURTS – AML SUMMARY 3

SCHEDULE 2 Certification Requirements C▶ ertification in New Zealand Where original documents cannot be provided, please provide copies that have been certified by a trusted referee. In New Zealand a trusted referee must be at least 16 years of age and one of the following: • Commonwealth representative • Member of the police • Justice of the Peace • Registered medical doctor • Kaumātua • Registered teacher • Minister of religion • Lawyer • Notary public • New Zealand Honorary consul • Member of Parliament • Chartered Accountant The trusted referee must not be: • Related to you • Your spouse or partner • A person who lives at the same address as you • A person involved in the transaction or business requiring the certification Any trusted referee’s capacity to act must be verifiable (e.g. a Justice of the Peace is checked against the official register to ensure they exist). When certification occurs overseas, copies must be certified by a person authorised by law in that country to take statutory declarations or equivalent. Certification wording The following information and wording should be present on each document being certified: • Printed full name of trusted referee • Date (within the last three months) • Signature of trusted referee • Capacity to act as a trusted referee • Any registration number (if applicable) • Plus for photo ID: “I certify this is a true copy of the original document, which I have personally sighted; and the photograph is a true likeness to the named individual.” • Plus for non-photo ID: “I certify this is a true copy of the original document, which I have personally sighted.” Note: you are welcome to bring in your original documents to the office where your agent or our compliance team member can copy and verify for you. 27/05/2019 3 4

SCHEDULE 2 Source of Wealth or Funds Documentation Property Ownership - Sale and Purchase Agreement Salary, Wages, Bonus, Commission - Property Ownership Database Investments - Bank statements Business Income, Corporate - Payslips Investments, Company Profits - Contract of employment or confirmation of employment - IRD Statement Insurance Claim or Pay-out - External sources (websites, social media) Redundancy - Tax returns Compensation payment - Letter from accountant Sale of assets Inheritance - Investment statement Loan - Bank statements Gift - Letter from accountant, financial adviser Winnings (e.g. casino, lottery) - Financial statements (preferably audited) Government Income - Business plan for a start-up Rental Income - Contract (for a sole trader or SME start-up) - External sources (websites) 23/01/2019 - Companies Office website to confirm shareholding, directorships - Letter from payer - Bank statement evidencing payment - Letter from payer - Bank statement evidencing payment - Tax return - Letter from payer - Bank statement evidencing payment - Sale agreement - External listing from website - Property Ownership database - Letter from executor of estate - Proof of payment from lawyer’s trust account - Copy of probate/will - Loan statement or agreement - Letter from loan provider - Gifting letter - Confirmation from person providing gift - Prize confirmation (e.g. letter from Lotteries Commission) - Evidence that payment has come from winning – e.g. payment into account from TAB, Lotteries Commission - Cheque marked ‘winnings’ - Letter from Government agency – e.g. benefit letter. - Evidence from bank account showing receipt of such a payment - Rental Agreement - Property Ownership documents - Financial Statements - Tax return - Letter from accountant HARCOURTS – AML SUMMARY 5

SCHEDULE 3 Politically Exposed Person (PEP) Politically exposed person means: - an individual who holds, or has held at any time in the preceding 12 months, in any overseas country the prominent public function of: − Head of State or head of a country or government; or − Government minister or equivalent senior politician; or − Supreme Court Judge or equivalent senior Judge; or − Governor of a central bank or any other position that has comparable influence to the Governor of the − Reserve Bank of New Zealand; or − Senior foreign representative, ambassador, or high commissioner; or − High-ranking member of the armed forces; or − Board chair, chief executive, or chief financial officer of, or any other position that has comparable influence in, any State enterprise; and - an immediate family member of a person referred to in paragraph (a), including: − a spouse; or − a partner, being a person who is considered by the relevant national law as equivalent to a spouse; or − a child and a child’s spouse or partner; or − a parent; and - having regard to information that is public or readily available: − any individual who is known to have joint beneficial ownership of a legal entity or legal arrangement, or any − other close relationship, with a person referred to in paragraph (a); or − any individual who has sole beneficial ownership of a legal entity or legal arrangement that is known to exist − for the benefit of a person described in paragraph (a) 27/05/2019 6

MONEY LAUNDERING FINANCING OF Red flagsTERRORISM Significant and unexplained geographic distance between real estate agent and the location of the client The Client invests in real estate at higher or lower prices than expected by the market The client is a business or a trust whose organisational structure is unusual or excessively complex The client makes it difficult to identify the true beneficial owner or individual with effective control The client is reluctant to provide all relevant CDD information, or you have reasonable doubt the information provided is correct or sufficient The client is from a high-risk jurisdiction country The client’s instructions or access to funds does not match their business or personal profile A property is bought and sold in quick succession The client is selling for less than the purchase or market price and/or is disinterested in obtaining a better price The client shows interest in purchasing a property without normal levels of interest in price The client offers an unusually high price for property and is not interested in obtaining a better price for the real estate agency work The client requires unexplained urgency of real estate agency work Payments are received from un-associated or unknown third parties. HARCOURTS – AML SUMMARY 7

INVERCARGILL 182 Dee Street Invercargill 9810 Phone: 03 214 4080 Email: [email protected] 99 Spey Street Invercargill 9810 Phone: 03 214 6269 Email: [email protected] invercargill.harcourts.co.nz GORE 183 Main Street Gore 9710 Phone: 03 208 1222 Email [email protected] gore.harcourts.co.nz