Bitcoin without KYC & AML

It is possible to buy Bitcoin without KYC & AML in New Zealand. Typically you would buy the bitcoin directly from someone else who has it. There are services that provide market places for this type of Bitcoin trading. 

Lightning Pay is a registered FSP must follow AML procedures in line with New Zealand law.

Lightning Pay is a registered FSP

In New Zealand, financial service providers (FSPs) are required to verify customers' proof of identity and address as part of their obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).

Legal Requirements Under the AML/CFT Act

FSPs must perform customer due diligence (CDD) on new and existing customers. This includes:

  1. Identity Verification

    • FSPs must collect information about a customer’s full legal name, date of birth, and other identifying details.
    • Common forms of identity documents include:
      • Passports
      • New Zealand driver licenses
      • National identity cards
    • These documents must be verified, either electronically or in person, to ensure they are genuine.

  2. Address Verification

    • FSPs are required to confirm the customer’s residential address.
    • Acceptable proof of address documents include:
      • Utility bills
      • Bank statements
      • Government-issued letters
    • This helps to confirm the customer's location and assess their risk level.

  3. Enhanced Due Diligence

    • For high-risk customers (e.g., politically exposed persons), additional information may be required, such as the source of funds or wealth.

Why Financial Service Providers in New Zealand Must Verify Proof of Identity and Address

In New Zealand, financial service providers (FSPs) are required to verify customers' proof of identity and address as part of their obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). 

Legal Requirements Under the AML/CFT Act

FSPs must perform customer due diligence (CDD) on new and existing customers. This includes:

  1. Identity Verification

    • FSPs must collect information about a customer’s full legal name, date of birth, and other identifying details.
    • Common forms of identity documents include:
      • Passports
      • New Zealand driver licenses
      • National identity cards
    • These documents must be verified, either electronically or in person, to ensure they are genuine.

  2. Address Verification

    • FSPs are required to confirm the customer’s residential address.
    • Acceptable proof of address documents include:
      • Utility bills
      • Bank statements
      • Government-issued letters
    • This helps to confirm the customer's location and assess their risk level.

  3. Enhanced Due Diligence

    • For high-risk customers (e.g., politically exposed persons or those from high-risk jurisdictions), additional information may be required, such as the source of funds or wealth.

Benefits of Identity and Address Verification

  1. Reduced Risk of Fraud

    • Verification deters fraudsters from impersonating others or setting up fake accounts.

  2. Improved Financial Security

    • Ensures that only legitimate individuals and entities can access financial services.

  3. Facilitating Law Enforcement

    • A clear record of customer identities makes it easier for authorities to investigate suspicious activities.

  4. Complying with Regulations

    • FSPs that fail to comply with AML/CFT requirements face significant penalties, including fines and reputational damage.

Impact on Customers

We are required to hold the information we collect about you on file.

Consequences of Non-Compliance for FSPs

Financial service providers that fail to meet their AML/CFT obligations face serious repercussions, such as:

  • Heavy fines
  • License suspension or cancellation
  • Damage to reputation
  • Legal action from regulators such as the Department of Internal Affairs (DIA) or the Financial Markets Authority (FMA).