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FinTechs belonging to this category provide identification services, which are required for most banking services.
Introduction
Attitude of the country towards identification services
There are no notable reservations in relation to identification services in New Zealand. New Zealand’s AML laws and regulations demand that in most cases where client funds are handled by professionals the beneficial owners must be identified and, in some cases, the source of wealth of the client be obtained as well.
Legal affairs
Obligations and requirements to provide identification services
There is no licence or registration specific to providing identification services in New Zealand.
Additional comments regarding the legal situation for identification services or what FinTech’s must be aware of in this business area
The Privacy Act 2020 (Privacy Act) and its associated regulations provide a framework for handling personal information in New Zealand. Providing services of this nature will be captured by the Privacy Act. Providers should create a compliant privacy policy and appoint a privacy officer prior to engaging in this business.
Economic conditions
Market size for identification services and biggest companies in this business area
Identification requirements for AML laws have created a notable market. Entities subject to New Zealand AML legislation can either manage their statutory compliance internally or appoint a third party. It can be a lot simpler to contract a third party and it has created competition in this area.
There is insufficient publicly available information to advise on market shares and revenue in this area.
Additional comments regarding the economic situation for identification services or what FinTech’s must be aware of in this business area
N/A.