Digital Identity NZ releases report addressing identity verification for AML/CFT purposes

MinterEllisonRuddWatts is proud to have worked alongside Digital Identity NZ (a New Zealand Tech Alliance member) (DINZ), providing the legal input into DINZ’s report, “The reliance and reuse of identity verification for AML/CFT purposes” (Report). At this stage, the Report has been released to DINZ members and selected other parties.

MinterEllisonRuddWatts strongly supports the work DINZ is doing to facilitate greater use of digital identity technology. This technology will likely result in more efficient compliance with the AML/CFT regime. More New Zealand commerce is shifting online, resulting in an increased reliance on digital transactions. The growing number of digital transactions places pressure on organisations to verify their customers’ identity and to improve their customer onboarding experience.

The Report explores issues faced by AML/CFT reporting entities when verifying a person’s name, date of birth and address (Core KYC) as reporting entities. The Report investigates solutions to these issues, including the possibility for banks and other AML/CFT Act reporting entities to share and reuse Core KYC information. It also considers the implications of issues identified in the international Financial Action Task Force’s guidance earlier this year on digital identity. (Related content:

The Report is timely, given Cabinet announced in August that a Digital Identity Trust Framework will be developed, creating a regulatory regime for identity service providers to meet certain rules to help ensure society can have trust and confidence in their services.

The Department of Internal Affairs has been tasked by Government with drafting the Interim Trust Framework, a starting document that will eventually shape the Digital Identity Trust Framework.

The Digital Identity Trust Framework will be relevant to all citizens and businesses, as well as digital identity service providers.

If you would like to discuss the implications of the Report, please contact Lloyd Kavanagh (Partner) or Bryan Ventura (Senior Solicitor).