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Speaker 1: Now, the anti money laundering announcements continue from the government.

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Speaker 1: This time they're loosening the rules around purchasing a home

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Speaker 1: with a family trust. The new approach will allow real

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Speaker 1: estate agents to apply some simplified due diligence for low

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Speaker 1: risk sales. Janet Zookoa is the managing director of New

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Speaker 1: Zealand Family Trust Services and with us. Hello Janet, our

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Speaker 1: good morning head that how cumbersome is it to buy

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Speaker 1: a house through a family trust?

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Speaker 2: Oh, it's dreadful, I mean right now under AML well,

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Speaker 2: up until the new changes, iml legislation has really placed

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Speaker 2: on all of us that's involved in transactions a one

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Speaker 2: size fiddle compliance machine when it comes down to trust transactions,

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Speaker 2: and we've had to follow a set of high water

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Speaker 2: mark obligations. In other words, we've adapted a set of

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Speaker 2: rules and put them in place, and those rules don't

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Speaker 2: usually don't match the actual risk involved in the transactions.

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Speaker 2: So it's made it hard on everyday New Zealanders to

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Speaker 2: to really get their transactions through. It's not facilitated business

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Speaker 2: and personal transactions. So legislation is not great when it's

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Speaker 2: doing that, because it's stemmying what should be happening in

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Speaker 2: our economy.

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Speaker 1: So it's basically up to agents to make an assessment

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Speaker 1: of the person and decide whether the low risk or not.

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Speaker 1: But how would they do that.

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Speaker 2: It's not just agents, it's lawyers, it's accountants. I mean,

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Speaker 2: that's part of the part of the problem. Just before

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Speaker 2: I answer that that question, that is part of the problem.

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Speaker 2: You have got clients providing the same information over and

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Speaker 2: over again. It's the legislation has been complex, it's been

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Speaker 2: time consuming, it's the petitive, not to mention expensive. So

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Speaker 2: these changes are really a welcome relief to you know,

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Speaker 2: to most providers. What have had to happen with all

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Speaker 2: of the people that are involved in aml where we

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Speaker 2: have those obligations is that we have to obtain identity documents,

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Speaker 2: get those verified, but not on trustees but also for beneficiary,

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Speaker 2: so we have to really drill down. We have to

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Speaker 2: verify sources of wealth, which means frequently, as like from

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Speaker 2: myl of Ninem for example, frequently we have got to

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Speaker 2: write to lawyers and accountants and ask where the source

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Speaker 2: of where the money has come from that's actually purchased

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Speaker 2: these assets. Despite the assets being in a trust for

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Speaker 2: maybe twenty or thirty years by ordinary every day hard

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Speaker 2: works and keyweeks, so it's quite it's been quite a basis,

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Speaker 2: it's it just hasn't. The rules just have not bettered

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Speaker 2: the trend, the actual risk involved in the transactions. So

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Speaker 2: it's kind of for me, I think, I think it's

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Speaker 2: really a welcome relief that we're going to see common sense,

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Speaker 2: pragmatic approach with proportionality and mind being adopted now where

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Speaker 2: our actual compliance work is going to match the risk

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Speaker 2: involved in the transaction.

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Speaker 1: And Janet, thank you for talking. Sort of appreciate it.

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Speaker 1: Jenet zu, co and Managing director for New Zealand Family

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Speaker 1: Trust Service is Limited. For more from The Mic Asking Breakfast,

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Speaker 1: listen live to news Talks at B from six am weekdays,

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Speaker 1: or follow the podcast on iHeartRadio