(1888PressRelease)
May 19, 2009 - With the word "terrorism" on the tip of everyone's tongue, it’s no wonder governments & industry alike have taken drastic steps to ensure "you" are not a conduit for money laundering. Ill-famed events over the past decade have highlighted the role of money laundering in cross-border crime and terrorism, and underlined the need to clamp down on the exploitation of financial systems worldwide. The Reserve Bank of New Zealand has provided guidelines for countering the financing of terrorism and money laundering. Global Reserve & Finance willing respects these guidelines.
Additionally, in acting with similar standards as the New Zealand Capital Markets (NZX), which requires New Zealand financial institutions to “have procedures and systems in place to deter money launderers from using it as a conduit for their illegal activities,” Global Reserve and Finance practices a “Know Your Client” policy.
KYC rules are local laws that require a financial institution to obtain identity documents from its clients, usually relating to anti-money laundering (AML) rules. KYC fulfils a risk mitigation function, and one of its key requirements is checking that a prospective customer is not listed on any government lists for wanted money launders, known fraudsters or terrorists. Rules in relation to “know your client” were introduced as a result of the client verification obligations under the Financial Transactions Reporting Act 1996. During the drafting of the Rules introduced in 2004, one of the main areas of concern was the Regulations in relation to “know your client.”
Verifying Client Identity
Global Reserve & Finance requires a copy of a passport before an account can be established, and will take reasonable steps to ensure that the information received from a prospective client is genuine information. As does the NZX, Global Reserve & Finance requires the new accounts department to verify the identity of a client from document(s) or information obtained from or relating to a reputable and identifiable source or by way of reference from a reputable and identifiable party. Poor quality scanned or photocopied documents will not be acceptable for the purpose of new account opening.
Know Your Client Procedures
Verification of the information and documents received from a client can be performed internally. If performed internally, best practice dictates that this is done by two different people, which is someone independent from the person who collected the information.
For detailed information on Financial Transactions Reporting Act 1996:
http://www.legislation.govt.nz/act/public/1996/0009/latest/DLM373804.html
For information on New Zealand Capital Markets:
http://www.nzx.com
For more information on The Reserve Bank of New Zealand Anti-Money Laundering Guidelines:
http://www.rbnz.govt.nz/finstab/banking/Regulation/3564847.pdf
About Global Reserve and Finance:
Global Reserve and Finance Ltd. is headquartered and incorporated under the laws of New Zealand. In accordance, Global Reserve and Finance must comply with the Companies Act 1933, the Fair Trading Act 1986, the Financial Reporting Act 1993, as well as other consumer protection legislation. The company offers CD’s, savings accounts, commercial lending, estate planning, and access to hedge fund and trading platform services. To learn more about GRF visit their website
http://www.globalreserve.co.nz.
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