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Glossary of terms and definitions for IRD numbers

A list of terms and definitions relating to the IRD number application process.

Definitions

Fully functional bank account

A fully functional bank account is one that is held with a New Zealand bank or licensed deposit taker and they have:

  • obtained identity information from you, and
  • completed verification of your identity

in accordance with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

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Customer due diligence

Customer due diligence (CDD) is a process that is completed with a New Zealand reporting entity. As part of this process the reporting entity will need to:

  • gather information about a customer's identity, and
  • verify a customer's identity to make sure the customer is who they say they are.

This process aids the detection, management and mitigation of the risk of money laundering and the financing of terrorism.

You must already be, or become, a customer of a New Zealand reporting entity so that CDD can be carried out by them. If you aren't a customer of a New Zealand reporting entity, you can become one by choosing to use the service(s) provided by them.

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New Zealand reporting entity

A New Zealand reporting entity is an organisation that provides financial-related services such as banking, foreign exchange, financial advice and life insurance.

The following websites have details of New Zealand reporting entities:

Note

Please don't call, write or email the DIA, FMA or Reserve Bank regarding New Zealand reporting entities.

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Offshore person

For an individual an offshore person is someone who:

  • is a New Zealand citizen and has been overseas for the last three or more years continuously, or
  • doesn’t have a New Zealand residence class visa granted by Immigration New Zealand, or
  • has a New Zealand residence class visa and has been overseas for the last twelve or more months continuously.

A company is an offshore person if it is:

  • incorporated outside New Zealand, or
  • 25% or more owned or controlled by offshore persons.

A trust is an offshore person if:

  • 25% or more of its governing body are offshore, or
  • offshore person(s) have 25% or more beneficial interest or entitlement to its trust property, or
  • 25% or more of persons with the right to amend or control the trust’s trust deed are offshore persons, or
  • 25% or more of persons with the right to control the composition of the trust’s governing body are offshore persons.

A unit trust is an offshore person if:

  • the manager or trustee (or both) are offshore person(s), or
  • offshore person(s) have beneficial interest or 25% or more of the trust’s property.

A non-individual partnership, unincorporated joint venture, or other unincorporated body is an offshore person if:

  • 25% or more of its partners (or members) are offshore persons, or
  • offshore person(s) have a beneficial interest or entitlement to 25% or more of its profits or assets, or
  • offshore person(s) have the right to exercise (or control the exercise) of 25% or more of voting power at a meeting.