AML duplication causes concern
Adviser Meredith Cornelius, who also runs a business helping others with their AML/CFT obligations, said some businesses felt they were doing customer due diligence (CDD) many times over for the various parties involved with each client.
An adviser who dealt with wrap provider Aegis would need to provide CDD in the format Aegis’ supervisor, the Reserve Bank, wanted and conduct their own CDD for their own regulator, the FMA.
She said Aegis had indicated they would ask for a selection of client accounts to make sure her CDD processes were correct for their requirements. She also had to report to the FMA, with an audit from another firm, and once a year fill out an online report for the FMA. “Let me get on with it,” she said.
Adviser Robert Oddy said there were too many different groups with their own approaches to how the regulation should be handled. “It’s like pouring sand in the engine room of the economy.”
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