The Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act) places obligations on reporting entities to detect and deter money laundering and financing of terrorism. The AML/CFT Act came into force on 30 June 2013.
As a reporting entity, we are required to conduct “customer due diligence” (CDD) on investors. This also includes any beneficial owners of an investor and any person acting on behalf of an investor. CDD will be conducted by us at the time that you acquire unit(s) in a forestry partnership and throughout the period that you own those units.
CDD is the process by which we develop an understanding of who our investors are and how they intend to use our products and services. This involves us identifying an investor by obtaining a range of information about them and verifying that information using reliable and independent sources. It also involves us developing an understanding of the nature and purpose of the proposed business relationship between us and the investor.
For our new investors, you will not be able to acquire a unit or units in a forestry partnership until we have completed CDD on you to a level satsifactory to us. For our existing investors, we will not distribute funds to you following the realisation of the assets of a forestry partnership that you own units in until we have conducted CDD on you to a level satisfactory to us.
You can visit the FMA website by to find out more about AML/CFT and CDD.