Know your Customer (KYC) and anti-money laundering (AML) are probably terms you’ve heard before, especially as discussions around consumer privacy and security increase. However, sometimes the meanings of KYC and AML can become confusing depending on who you speak to or the application they’re being used for.
Note that this article does not constitute legal advice and is opinionated based on self-review of New Zealand requirements.
The Anti-Money Laundering (“AML”) Countering Financing of Terrorism Act 2009 ("Act”) requires reporting entities in New Zealand to undertake Know Your Customer (“KYC”) processes (commonly referred to as “customer due diligence”). The New Zealand AML Supervisors (e.g., Financial Markets Authority, Department of Internal Affairs) have done a great job of providing guidance to reporting entities to understand how to perform KYC processes for natural persons (individuals) and legal persons (legal entities).
The European General Data Protection Regulation (GDPR) came into effect from 25 May 2018. This regulation brings with it a new set of challenges for blockchain companies. Think of it this way - GDPR is like an iceberg floating in the sea.