If you’ve bought or sold property in New Zealand recently, chances are you’ve been asked for identification, proof of address, or details about where your funds came from. This is all part of something called AML, short for Anti-Money Laundering.

While the extra paperwork can feel like just another hurdle, AML plays a critical role in protecting New Zealand’s property market and broader economy. Below, we’ll break down what AML is, why it matters, and how it affects you as a property owner.

What is AML?

Anti-Money Laundering (AML) refers to laws and processes designed to detect and prevent criminals from “cleaning” money obtained through illegal activities such as fraud, tax evasion, drug trafficking, or organised crime by moving it through legitimate channels like property transactions.

In New Zealand, the main law covering this is the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (often shortened to AML/CFT). It sets out clear obligations for businesses in sectors where large sums of money change hands, including banks, lawyers, accountants, and real estate salespeople.

Why is AML important?

Money laundering isn’t just something that happens overseas or in movies - it happens here in New Zealand too. Criminals target property transactions because buying real estate is an effective way to disguise the origins of illicit funds.

AML measures aim to:

  • Protect the reputation of New Zealand’s economy,
  • Make it harder for criminals to profit from wrongdoing, and
  • Help detect and deter funding for terrorism.

By complying with AML requirements, everyone involved in real estate helps uphold a fair, transparent property market that New Zealanders can trust.

What does this mean for you as a property owners?

If you’re buying or selling property, you’ll likely be asked to provide certain information so that your real estate salesperson or lawyer can meet their AML obligations. This process is called Customer Due Diligence (CDD) and typically involves:

  • Confirming your identity, such as a passport or driver’s licence,
  • Verifying your address, often using a utility bill or bank statement,
  • Demonstrating the source of your funds, for example, a bank loan document or evidence of a property sale.

This isn’t because you’re suspected of wrongdoing, it’s a legal requirement applied to everyone.

How AML impacts New Zealanders

While AML requirements can sometimes feel inconvenient, they are designed to protect New Zealanders from the social and economic harm caused by financial crime. These measures help:

  • Prevent property values from being distorted by criminal activity,
  • Reduce the risk of New Zealand becoming a safe haven for dirty money, and
  • Keep our financial system internationally trusted and secure.

By understanding the purpose behind AML, you can feel more confident navigating the process and know you are playing a part in strengthening the integrity of our property market.

The bottom line

Whether you’re buying your first home, selling an investment property, or transferring property within your family, AML checks are a standard part of the transaction process.

At EVES, we’re committed to making these requirements as straightforward as possible. If you’re unsure what documents you need or how to supply them, our team is always here to help guide you through every step. We also have a dedicated AML officer, to ensure our clients are protected and our salespeople can assist you with satisfying all of your obligations.

Have questions about AML and your property transaction?

Get in touch today - our friendly experts are here to help you understand your obligations with confidence: eves.co.nz/our-people