When you instruct us we will present you with two documents;

i.               Letter of Engagement, and
ii.              Terms of Engagement

The Letter of Engagement will list the specific services that will be provided to you in response to your instructions, the basis on which our fees will be charged, and finally the name and status of the people in our firm who will have overall responsibility for the services. It will be important for clients to question details on that letter if they are not understood or agreed upon, and otherwise acknowledge receipt of the letter.  It is important to understand that should the original request change or evolve to more services, an updated Letter of Engagement will need to be produced 

The Terms of Engagement incorporate our standard terms of trade and information we are required to disclose to you in relation to fees, our insurance arrangement, the Lawyer Fidelity Fund and other specific matters. 

Download and view the Terms of Engagement 

What is Anti Money Laundering?

New Zealand has passed a law called the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (we will call it the AML/CFT law).  The purpose of this law reflects New Zealand's commitment to the international initiative to counter the impact that criminal activity has on people and economies within the global community.

Recent changes to the AML/CFT law mean that from 1 July 2018, lawyers are required to comply with its requirements.  This law requires lawyers to do a number of things to help combat money laundering and terrorist financing and to help Police bring the criminals who do it to justice.  The AML/CFT law does this because the services law firms and other professionals offer may be attractive to those involved in criminal activity.

The law says that law firms and other professionals must assess the risk they may face from the actions of money launderers and people who finance terrorism and identify potentially suspicious activity.

To make that assessment lawyers must obtain and verify information from prospective and existing clients about a range of things.  This is part of what the AML/CFT law calls "customer due diligence" ("CDD").

CDD requires a law firm to undertake certain background checks before providing services to clients or customers.  Lawyers must take reasonable steps to make sure the information they receive from clients is correct, and so need to ask for documents that show this.

We will need to obtain and verify certain information from you to meet these legal requirements.  This information includes:

• your full name; and

• your date of birth; and

• your address.

To confirm these details, documents such as your driver's license or your birth certificate, and documents that show your address, such as a current bank statement will be required.

If you are seeing us about a company or trust business, we will need information about the company or trust including the people associated with it (such as directors and shareholders, trustees and beneficiaries).

We may also need to ask you for further information.  We will need to ask you about the nature and purpose of the proposed work you are asking us to do for you.  Information confirming the source of funds for a transaction may also be necessary to meet the legal requirements.

If we are not able to obtain the required information from you, it is likely we will not be able to act for you.

Our team will guide you through these new requirements.

What is CRS & FACTA?

All New Zealand banks and financial institutions are now required to collect information about customers’ foreign tax residency and pass that and other personal and account information onto Inland Revenue.

Called the Common Reporting Standard (CRS), it has been initiated by the Organisation for Economic Co-Operation and Development (OECD) under the Automatic Exchange of Information (AEOI) regime. The obligations to provide information also extend to the Foreign Account Tax Compliance Act (FATCA) as well as the CRS.

Under FATCA, New Zealand banks and financial institutions are currently required to identify and report annually on any accounts held by US Persons or foreign entities that have US Persons as beneficial owners.

The requirement to capture this information impacts our clients whom we deposit funds on behalf of into an interest-bearing deposit account through the Client Fund Service (CFS) product. 

We will guide you through the process should the need arise and if you would like to read more, click here for detailed FAQ's from the BNZ which are very informative and cover:

Why has it come about?

Who does it affect?

What does it cover?

What happens after Reporting?

Tax returns and advice

Privacy

Individuals/companies/trusts/joint accounts

Or click here for the Ministry of Justicewebsite providing very helpful information.