Ros Rice - December Journal Entry

Ros Rice • December 6, 2023

Thank you for reading our latest newsletter!

Kia ora Everyone, 

Here we are at the end of 2023. I know by the time you read this, we have a coalition deal, and we know the form of the new Government.  A new Government is going to mean a lot of new things to get used to. I remember last time National came into Government, a lot of our language had to change.  Several of us from the 'Wellington world' travelled around the motu, to teach about the new terms and the new attitudes we needed to understand. 


I remember how difficult it was for us to change calling our clients ‘ customers’. Yet we coped, we managed, we are adaptable and we can get with the programme when we need to. 


CNA will try and keep you up to date if we hear of any new terms that we all need to be aware of during the next year. This brings me to something that has come up with our research into banks. We have heard of a lot of Incorporated Societies who are considering changing to Trusts. We just want to highlight two issues that you may not have thought of. 


  • When you are a Trust with an appointed Board, you will not be as representative of your members as you used to be. That may change how your community thinks about you, so just be aware of that change of representation. 

  • Due to the Anti-money laundering Act, any organisation (whether you have been part of your Bank for years or not), who calls itself a Trust, will come under what is called Enhanced Customer Due Diligence (or ECDD).  The requirements of ECDD are that the Bank is required to: 


  1. Obtain identity proof of all those on your Governance Board, and also staff who handle the bank account. 
  2. To identify and verify the arrangements to know who are the beneficial owner(s) so that they can make decisions about the level of risk your Trust presents. 
  3. Banks will ask about your “source of wealth”. That is the origin of your entire body of assets. The origin of the funds used for transactions or activities.  We know of a Community Library that was asked for proof of how they funded all the library books. (although this was a bit extreme. It can happen.) 
  4. Banks will also want to know about your “source of funds”.  You will need to provide proof. 

  • There are other measures too.  But this is simply so you are prepared for a different trip to the Bank than you are used to if you change your legal entity to a Trust. Take a deep breath and understand that Banks are required by legislation to take these measures if you are a Trust. Just take things one step at a time. 


On that note have a very happy Christmas. Here after such a busy year, we are all very tired, and I plan to sleep the holidays away. Do what you need to for yourself, and come back refreshed and relaxed for a new 2024. 


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