Learning Objectives - Communication (Section II)

Learning Objectives - Disclosure (Section III)

Money laundering in New Zealand

How is money laundered?

Risk of money laundering activities using real estate

Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the AML/CFT Act)

Real Estate Agents as ‘Reporting Entities’ and captured activities

Money laundering offence

The role of the Department of Internal Affairs (DIA)

Questions 1 - 7

Statutory requirements of reporting entities

AML/CFT Requirements

Questions 8 - 12

Undertaking due diligence: your obligations

Questions 13 - 16

Standard customer due diligence

Simplified customer due diligence

Enhanced customer due diligence

Steps to follow when assessing CDD requirements

Questions 17 - 20

Example 1 – Standard CDD: residential

Example 2 – Standard CDD: commercial

Example 3 – Simplified CDD: commercial

Example 4 – Enhanced CDD: family trust

Example 5 – Enhanced CDD: residential Politically Exposed Person (PEP)

Financial Intelligence Unit (FIU)

Suspicious activity reports (SARs)

Prescribed transaction reports (PTRs) and Suspicious Property Reports (SPRs)

Relationships with other AML/CFT reporting entities

Questions 21 - 23

Recognising red flags

Expectations of the DIA on all licensees

Research results: an overview

REA / Nielsen Annual Perceptions research July 2018

Interpersonal communication

Communication exercise

Policies and procedures

Questions 24 - 25

Scenario 1

Question 26 - Scenario 1

Oral communication with clients and customers

Scenario 2

Question 27 - Scenario 2

Electronic communications overview

Text messaging

Email

Social media

Sending scanned documents between parties

Questions 28 - 33

settled.govt.nz

Communication throughout the transaction overview

The real estate transaction

Questions 34 - 40

Communicating with the client throughout the real estate transaction

Complaints and documented proof

Scenario 3

Question 41 - Scenario 3

Managing client price expectations

Questions 42 - 45

Record Keeping

Statutory requirements

Questions 46 - 48

Understanding disclosure

Scenario 4

Question 49 - Scenario 4

Review of disclosure obligations to clients and customers

Questions 50 - 57

Disclosure of personal and/or property-related information

Scenario 5: Disclosure of clients’ confidential personal information

Question 58 - Scenario 5

Disclosure obligations in relation to sections 134, 135 & 137

Questions 59 - 62

Conflict of interest and informed consent - A case study

Provisional valuation

Benefitting financially from a transaction other than from commission Section 136

Scenario 6

Question 63 - Scenario 6

Scenario 7

Question 64 - Scenario 7

Disclosure of material facts to the customer

Scenario 8

Question 65 - Scenario 8

Scenario 9

Question 66 - Scenario 9

Scenario 10

Question 67 - Scenario 10

Disclosure of sensitive issues

Guidance from a decision

‘As is/where is’ provisions do not negate disclosure obligations

When to disclose

Legal Obligation

What does this mean for licensees?

Steps to follow if a property is suspected to be contaminated with meth

Prudent Advice

Scenario 11

Question 68 - Scenario 11

Recognising ‘red flags’

Form 2 – Client consent for the licensee to acquire an interest in the property

Disclosure of other benefits that licensee stands to gain – section 136