New Zealanders will soon find it easier to prove who they are when dealing with banks, lawyers, mortgage advisers and other businesses covered by anti-money laundering (AML) laws.
The Government has announced a refreshed Identity Verification Code of Practice, with most changes coming into force on 1 July 2026. It is the first major update to the code since 2013.
The changes are designed to make identity checks more practical and less repetitive, while still protecting the financial system from criminal activity.
Associate Justice Minister Nicole McKee said the AML regime had become overly burdensome for both businesses and customers. The updated code is intended to provide clearer guidance, greater consistency and a more proportionate approach, particularly for lower-risk customers.
Internal Affairs Minister Brooke van Velden said the reforms would make it easier for businesses to verify identities in ways that are both secure and practical.
One notable change is that SuperGold Cards and Total Mobility Cards will be easier to use as secondary forms of identification, which may particularly benefit older New Zealanders and people with disabilities.
Other changes include:
- Adding officers of the Māori Land Court to the list of trusted referees.
- Creating standardised exception processes for common situations, such as people living in rest homes or overseas.
- Allowing greater flexibility when using reliable overseas government sources for identity verification.
Why identity checks matter
AML laws are designed to prevent criminals from using the financial system to hide money obtained through illegal activities. As a result, businesses involved in financial transactions are required to verify the identities of their customers.
Most people have encountered these requirements when applying for a loan, opening a bank account or purchasing property. While the process can sometimes feel repetitive, the checks play an important role in protecting the integrity of the financial system.
The challenge for policymakers is finding the right balance between preventing financial crime and avoiding unnecessary inconvenience for legitimate customers.
The Government believes these changes will help achieve that balance by focusing regulatory effort on higher-risk situations while making life easier for ordinary New Zealanders.
If you have any contacts who are planning to purchase property, refinance or apply for a loan, they may benefit from understanding what information lenders are likely to require during the application process. We’d be pleased to assist if you’d like to connect us.
