6‑28 Ongoing customer due diligence—tran

6‑28 Ongoing customer due diligence—transferred pre‑commencement customer

(1) For the purposes of paragraph 30(3)(b) of the Act, a reporting entity is taken to comply with the matters mentioned in paragraphs 30(2)(b) and (c) of the Act in relation to a customer if: (a) the customer became a customer of the reporting entity as a result of any of the following events occurring: (i) another reporting entity (the prior entity) has assigned, conveyed, sold or transferred the whole or a part of its business to the reporting entity; (ii) all or part of the assets and liabilities of another reporting entity (the prior entity) have become the assets and liabilities of the reporting entity as a result of a voluntary transfer that has taken effect under Part 3 of the Financial Sector (Transfer and Restructure) Act 1999; (iii) all or part of the assets and liabilities of another reporting entity (the prior entity) have become the assets and liabilities of the reporting entity as a result of a compulsory transfer that has taken effect under an Act; and (b) immediately before that event, the customer was a pre‑commencement customer of the prior entity; and (c) the reporting entity has obtained copies of the records that the prior entity kept under sections 107, 108, 111 and 114 of the Act in relation to the customer; and (d) the reporting entity monitors for significant changes in the nature and purpose of the reporting entity’s business relationship with the customer that may result in the ML/TF risk of the customer being medium or high. (2) However, subsection (1) ceases to apply in relation to the customer if: (a) a suspicious matter reporting obligation arises for the reporting entity in relation the customer; or (b) there is a significant change in the nature and purpose of the business relationship with the customer which results in the ML/TF risk of the customer being medium or high.