Identity Verification Code of Practice Update

Overview

The Anti-Money Laundering and Countering Financing of Terrorism (“AML/CFT”) Supervisors (the Reserve Bank of New Zealand (“RBNZ”), Financial Markets Authority (“FMA”) and Department of Internal Affairs Te Tari Taiwhenua (“DIA”) are inviting submissions on their proposal to update the Identity Verification Code of Practice (“IVCOP”). The IVCOP is issued under Part 2 Subpart 5 of the AML/CFT Act 2009 and provides a statement of practice that assists reporting entities to comply with their obligations under this Act and regulations. 

The proposals have been designed to deliver against the following objectives: 

1. better provide for known new digital ways of verifying identity 
2. future proof the IVCOP to provide for unknown novel and new identity verification practices 
3. reduce regulatory burden for reporting entities subject to the Act
4. ensure we are well placed to tackle organised crime and protect our international reputation as a trusted place to do business.

Feedback sought

The consultation process is being managed by the DIA on behalf of the Supervisors. 

The Supervisors have identified a group of proposals that are being put forward: 

• streamlining and updating the documentary identity verification requirements
• clarifying the ways that a copy of an identity document certified by a trusted referee can be used and the electronic identity verification options 
• adding a new verification pathway using accredited Digital Identity Services Trust Framework providers 
• applying the IVCOP to high-risk customers in the same way it applies to low or medium-risk customers 
• providing a new approach and greater clarity for beneficial owners and persons acting on behalf, and the application of the IVCOP to wire transfers.