AML flexibility offered

"While the ongoing customer due diligence (CDD) and account monitoring requirements continue to apply, reporting entities should be aware of the challenges that their customers are currently facing," the FMA, Reserve Bank and Department of Internal Affairs said in a joint statement.

"The AML/CFT Act prescribes a risk-based approach to ongoing CDD and account monitoring. This means that for current customers, reporting entities have the discretion to not necessarily sight certain documents in certain circumstances, depending on the reporting entity’s assessment of ML/FT risk.

"The supervisors understand that, in the current situation, it may be more difficult for reporting entities to carry out ongoing CDD as per their usual processes. Instead, reporting entities should apply a risk-based approach. This may mean, for example, that reporting entities accept scanned copies of documents as an interim measure, with the originals to be sighted at a reasonable later time (upon lifting of alert levels)."

When new business relationships are set up or work is done for new clients and an identity cannot be verified face-to-face, businesses had options, the AML supervisors said.