Anti Money Laundering Bill 2009 and how it effects you when selling your motel.
As an accredited business broker and in order to ensure I give the best possible service to clients I am continually undertaking further education. The latest issue which effects real estate agents and subsequently moteliers selling their business is the Anti Money Laundering Bill 2009
The anti money laundering bill was introduced in 2009 and is being phased in over different sectors of NZ over a period of time. The Government has made changes to the law. Businesses are now required to put preventative measures in place to help tackle money laundering and financing of terrorism. The legislation extends the current AML/CFT regime to lawyers, conveyancers, accountants, real estate agents, sports and race betting, and businesses that deal in certain high value goods. The AML/CFT Phase 2 Regulations, which outline how various AML/CFT measures will work in practice, were approved in December 2017. In July 2018 Lawyers and conveyancers were the first sector required to comply and real estate agents have to comply from January 2019.
So how does this all effect you as a motelier? Basically under the compliance regime we are required to verify the identity of all vendors we deal with in our business. This requires us to provide
1)evidence of the clients name, verified by passport or drivers licence
2)physical address verified by a utility bill or similar.
For those of you who have dealt with your lawyer since July 2018 you will have been asked for this information by them. You will still need to provide it to your real estate agent as well.
In the case of a company the company details are required and the above information for anyone owning more than 25% of the shares, individuals with effective control of the company and all individuals acting on behalf of the company.
For a trust the trust deed is required and all trustees or settlors need to provide the individual information as above.
If a power of attorney is in place a copy of the power of attorney is required plus the individual details as above for that entity and the individual acting as the POA.
In addition to the above there may be a requirement to verify the source of income from the entity we are dealing with. However this is probably unlikely in the case of a motel for sale.
It is unlawful from January to list a motel without completing this customer due diligence first so it is important that if you want to sell your motel you have these items available for the broker either before or at the time of listing.
As always if you have any questions don’t hesitate to contact me.