Guide to identity checking
Identity checking prior to lending is a legal requirement in New Zealand.
Why do you have to check my identity?
Why do you have to check my identity?
The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 requires lenders to complete rigorous identity checking on certain people in lending transactions. No lender can loan you money without completing identity checking.
We will complete identity checking on:
- All directors of your business who sign loan documents
- All shareholders with more than 25% shareholding
- Any other interested parties, eg guarantors
What does it involve?
In most cases, you will be asked to do electronic identity verification which is sometimes an outsourced service. You’ll receive a text and email, asking you to click a link to verify your identity.
Always make sure you’ve got your photo ID handy, because you’ll be asked to scan it, and also take a ‘selfie’ to prove that it’s really you doing the identity verification.
When a trust is a shareholder
If a trust holds 25% or more of the shareholding of your business, we will require:
A certified copy of the trust deed and any other supporting documents, such as transfer of shares and associated documents
A statement describing the source of wealth of the trust
Identity checking on trustees
A list of names and dates of birth of the beneficiaries
Where to get more information
Identity Verification Code of Practice