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Banks Say Extra Costs From New Laws Will Be Passed To Customers

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, Aug 25 NZPA - Proposed legislation fighting money laundering would costs banks $350 million and that would be passed on to customers, banks told politicians yesterday.

The Anti-Money Laundering and Countering Financing of Terrorism Bill would impose tough identification requirements on banks.

Banks would have to establish customers' identities, dates of birth and addresses from passports or drivers licences, the New Zealand Herald reported.

Existing customers would have to provide identification when they changed their relationship with the bank.

Kiwibank chief executive Sam Knowles told Parliament's foreign affairs and trade select committee the requirements were archaic and based on threats of five years ago.

The law could slow down technological advances in banking, he said.

Westpac general manager (regulatory affairs) Mariette Van Ryn said the additional costs would "needless to say" go to customers.

"Under this bill, our customers are effectively being treated as if they are high-risk customers.

"We will have lots and lots of customers having to come into the branch -- old people, young people who prefer using the internet -- all having to be re-identified for the most minor changes to their accounts."

NZPA PAR kc

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