Associate Justice Minister Nicole McKee announced the changes yesterday, saying the current rules saddled hard-working families with a “burdensome level of document verification and compliance checks” for little reason.
“Families who’ve worked hard, paid off their mortgage, and saved for the future shouldn’t be treated like potential criminals just because they want to move house,” she said.
“When there’s clearly nothing untoward going on, there’s no need for invasive investigations or repetitive paperwork.”
Under the government’s proposed approach, a real estate agent could apply “simplified customer due diligence” if they deemed the sale to be “clearly low risk”.
In such cases, agents would need only confirm ownership and trustee details match the certificate of title, verify the couple’s identity documents and role as trustees, and retain a copy of the trust deed.
Currently, agents must collect more extensive documentation, including the names and addresses of all beneficiaries – including children and lawyers – as well as explanations and proof of how the property was paid for.
The statement issued by McKee does not state exactly what would classify a transaction as “low risk” but said agents, lawyers and accountants would be issued clear guidance on how to apply the simplified checks “without fear of regulatory reprisal”.
“These changes are about recognising that not all customers carry the same risk and it’s time our laws reflected that,” she said.
“New Zealanders who play by the rules, work hard, and save for their future should be supported by the system, not tied up in red tape.”
The move is part of a broader shake-up of the anti-money laundering regime. The government yesterday also announced changes to make it easier for parents to set up bank accounts for their children.
