“Why do you need to check my ID?” We hear this a lot, usually with a slightly puzzled look. It comes up whether clients are buying a home, selling one, or simply moving their mortgage to a new bank.
The short answer is the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the AML/CFT Act). Lawyers and conveyancers are “reporting entities” under the Act. That means before we act on a property matter, we must carry out customer due diligence (the checks a lawyer must do to confirm who you are and understand the transaction).
The good news is that it is painless. For most clients the check is done online, on your phone, in a few minutes. This guide explains how it works, why it applies to every property matter, and when a little more information is needed.
Why do lawyers carry out AML checks?
Property transactions move large amounts of money in a short time. That makes property attractive to people trying to make criminal money look legitimate. For example, someone could buy a house with the proceeds of crime, hold it for a while, then sell it so the money comes back looking like ordinary sale proceeds. Borrowing against a property can be used in the same way. You are very unlikely to be one of those people, but because nobody can tell by looking, the law asks us to check everyone the same way (fun admin for us, right?).
The Department of Internal Affairs (DIA) supervises lawyers under the AML/CFT Act. Since 1 July 2026 it has been the sole AML/CFT supervisor in New Zealand. DIA’s Real Estate Sector Risk Assessment 2026 identifies money laundering risk in the property sector, which is why property work gets close attention.
Every property matter needs one
The same check applies whether you are:
- buying a property
- selling a property
- refinancing (moving your mortgage to a new lender, or borrowing more against your property)
A refinance can feel like a simple bit of paperwork, and it usually is. But it is still a transaction we act on, so the check still applies. Same few minutes, promise.
What the law requires us to do
Under the Act, before we can act for you, we must:
- identify you and take reasonable steps to verify who you are
- understand the nature and purpose of the work you want us to do
- carry out more detailed checks, called enhanced checks, where the risk is higher. These can include asking about your source of wealth.
In your own name: a quick online ID check
If the property is in your own name, or you are buying in your own name, the AML check is simple. When you engage us, we email you a secure link from Real AML, an online ID verification service. You follow the link, take a photo of your passport or NZ driver licence, and take a quick selfie so the system can match your face to your ID. It takes a few minutes on your phone. No printer, no scanner, and no trip to a JP.
Real AML checks your details automatically and sends the result straight to us. There is nothing to certify, photocopy or post. If there is more than one of you, for example a couple buying or selling together, each person gets their own link.
If you are selling or refinancing, we also need one document that links you to the property, such as a current rates notice or your house insurance policy.
Behind the scenes, we also complete an AML risk assessment for every matter using the details of your transaction. You do not need to do anything for this.
Electronic verification
We verify every client electronically through Real AML - no certified copies, no in-person ID drop-off. You receive a secure link, confirm your identity in minutes, and we get a compliance-grade result instantly. It keeps the overall timeline tight and removes one of the most common causes of delays at settlement.
- Completes in minutes
- No certified copies needed
- Compliance-grade result
- Works from anywhere in NZ or internationally
Trust or company? Where a trust or company is acquiring the property, we also need the trust deed or the company records. If you have done a conveyancing matter with us before, we will already have these on file.
If a trust is involved
When a trust is involved, there is a bit more homework, whether the trust is buying, selling or refinancing. Our checks go further, but we will guide you through each step. Each trustee receives their own Real AML link, the same way as an individual client. We also send you a guide listing the trust documents we need, which usually include:
- the trust deed
- any deeds appointing or retiring trustees
- any deeds varying the trust or changing the beneficiaries
We also ask the trustees for evidence of the trust’s source of wealth: how the money in the trust was built up. That usually means where the settlor’s money came from (the settlor is the person who set up the trust), plus any income the trust earns itself, such as rent. In many family trusts the settlor is also a trustee, so it is often the same person. Depending on your situation, that might be:
| Where the wealth came from | What we would usually ask for |
|---|---|
| Salary and wages | Bank statements, payslips or tax returns |
| Selling a property | The sale and purchase agreement |
| Investments | Investment statements or a letter from your accountant |
| Business income | Business financial statements |
| Sale of other assets | Records of the sale |
| Inheritance or gift | Probate or estate documents, or a gift letter |
| Insurance, redundancy or compensation payments | The payment letter or statement |
We look at who the beneficiaries are as well. Beneficiaries with more than a 25% interest in the trust are treated as beneficial owners (the individuals who own or control an entity) and are verified too. For other beneficiaries, we usually need only their name and date of birth, and for a large discretionary trust a description of the class of beneficiaries (for example, “the children and grandchildren of the settlor”) can be enough.
If a company is involved
For a company, we obtain the company’s records from the Companies Register ourselves. The directors and the beneficial owners (anyone who owns more than 25% of the company or otherwise has effective control) each complete a Real AML link. If a company is the trustee of a trust, we check that company and the people behind it too.
When do AML checks need to happen?
The Act requires us to complete customer due diligence before we start acting for you. That is why we send the Real AML link as soon as you engage us, not at the last minute before settlement. Getting it done on day one means our time goes on your transaction, whether that is reviewing an agreement, a LIM or your new loan documents.
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Step 1
Before you sign
Before you make an offer, list your property or accept a new loan offer, let us know whether the property is (or will be) in your own name, a trust or a company. If a trust or company is involved, we will tell you which documents to start gathering.
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Step 2
When you engage us
We send each person a secure Real AML link to verify their ID online. For a trust, we also send our guide to the trust documents and source of wealth information we need.
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Step 3
During the matter
With AML done, we focus on the work: the agreement and conditions on a purchase or sale, or the loan documents on a refinance.
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Step 4
Settlement day
Funds move through our trust account: to the vendor on a purchase, to you (after your mortgage is repaid) on a sale, and to your old lender on a refinance.
Can we help if something is hard to provide?
Some things are harder to pin down when a trust or company is involved. An old trust deed may have gone missing, or a settlor’s wealth may have come from overseas or from an estate in another country. If the settlor has passed away, we will work with the trustees on the records that are available, such as the trust’s financial statements or the settlor’s estate documents.
The best thing you can do is tell us early. If we know about an unusual situation from the start, we can advise on what else might be acceptable and give you time to gather it. And remember, none of this is about suspicion. It is simply the law’s checklist, and we are here to help you tick it off.
What we cannot do is skip it. Under section 37 of the AML/CFT Act, if customer due diligence is not completed, we must not start acting for you, and must end the relationship if we already have. This one is not up to us. It is a legal requirement.
Ready to take the next step?
Whether you are buying, selling or refinancing, talk to us early. We will get your Real AML link out straight away and, if a trust or company is involved, tell you exactly what to gather, so AML is ticked off and out of the way before things get busy.
You can also read more about buying property, selling property and refinancing with NZ Legal.
Contact NZ Legal to get started. Fill out our quick contact form and we will be in touch within one business day.
Sources
- DIA, AML/CFT Frequently Asked Questions for DIA Reporting EntitiesBeneficial owners (more than 25% or effective control), trust beneficiaries, and section 37.
- DIA AMLOnline, Standard customer due diligence (KA-01018)What standard customer due diligence involves.
- DIA AMLOnline, Enhanced CDD: source of wealth or source of funds (KA-01026)When enhanced checks apply and what they involve.
- DIA, Updated guidance for Enhanced Customer Due Diligence (5 June 2026)Updated guidance on trusts following the AML/CFT Amendment Act 2026.
- Ministry of Justice, AML/CFT legislative changesThe 2026 amendments and when they took effect.
- DIA, New era for AML/CFT regulation (1 July 2026)DIA as the sole AML/CFT supervisor from 1 July 2026.
- DIA, AML/CFT Information for Lawyers and ConveyancersLawyers and conveyancers as reporting entities.
- DIA, AML/CFT Information for Real Estate AgentsReal Estate Sector Risk Assessment 2026.
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