AML/CFT Update

We’ve made some improvements to how CDD Candidates are selected in the Connectworks CDD workflow, to help you ensure that all beneficial owners and parties with authority to act on behalf of your clients are having their requirements met.

In the updated workflow you can:

  • Specify the type of relationship a CDD Candidate has to a client 

    • Relationships that can be selected are: Effective control; Authority to act; Transactions conducted on behalf; >25% ownership (companies only); and Other.

    • More than one relationship can be selected per candidate.

    • Buckets for each relationship (showing all candidates with a particular relationship to the client) are displayed below the selection box.

  • Record information about the nature of a Candidate’s beneficial ownership or authority to act on behalf of a client.

    • The new AML Relationships block in the Perform CDD section contains two groups of sub-field: AML Relationship information; and Authority to act. Each group can be completed either by entering information into it, or indicating that information is not required.

    • Where a candidate has not been flagged as having authority to act and/or beneficial ownership, the checkbox indicating that information is not required about that kind of AML Relationship is automatically checked.

  • Select companies and trusts as CDD Candidates

    • Companies & trusts have different kinds of identifying information than natural persons. This is reflected on their Identity Verification block.

    • Where one company or trust client has a beneficial ownership relationship in another, its completed CDD record can be reused to create the identity verification, linking the records together. 

Important Information

If you’ve completed CDD for a client, you don’t have to do anything - completed records aren’t affected by the new fields. 

Existing CDD Candidates

All existing CDD candidates in ongoing workflows will be automatically marked as having an ‘other’ AML-relationship to the client. This relationship can be modified in the CDD Candidates section.

All existing Candidates will also have a new AML Relationships block in the Perform CDD section, which will be incomplete by default. You can complete this section by recording information about the Candidate’s AML relationship to the client, or by flagging that further information is not needed.

Linking previously-completed CDD records

If you have trust or company clients with beneficial ownership relationships to other clients, you can reuse their completed CDD records to verify their identity when performing CDD on the other client. For example, if you have a trustee company with a relationship to a number of trusts, you can perform CDD on the trustee company, then link that record into the CDD records of the trusts it is involved in.

To do this, just select the trust or company as a CDD candidate, then click the button to verify its identity information. If it’s had CDD completed, you’ll be able to use it here to create a new identity record. 

When reviewing and confirming the CDD, the reviewer can see whether a company/trust Candidate has had a full workflow completed by looking at the Identity Determination section of the Summary Review form. CDD Candidates whose identity determinations are based on completed CDD Workflows have an extra line of text stating this.


July two minute update

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AML/CFT enhancements
Experts say Connectworks has the most comprehensive AML/CFT solution around, but we're not stopping there. In the upcoming month we're making a release of two major features:

The first is the ability to select companies and trusts as CDD Candidates, and then link their completed CDD records into the CDD of other entities they're involved in.

So for example: 'Company A' is a shareholder of several other companies. Once you have completed CDD on 'Company A' you will be able to easily re-use the determination you made when doing CDD on the other companies which it has an ownership stake in, or control of. The ability to re-use a prior CDD determination will be available for any company, trust or individual. This will help firms to eliminate double handling data. Simply complete the CDD process once and it will be available to use across all roles in multiple entities.

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The second change is that users can specify a party’s AML-relevant relationship to a client at the same time as selecting the party as a CDD candidate. i.e. the reason for that person being a CDD candidate. This is being done to better align the CDD process in Connectworks with the requirements of the AML/CFT legislation. Relationships that can be selected are:

  • Effective control

  • Authority to act

  • Transactions conducted on behalf

  • >25% ownership (companies only)

  • Other

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More than one reason can be selected. Once the reason/s for undertaking CDD are selected fields relating to each will show, where users can record relevant information. We will communicate with existing users closer to the release date detailing what has changed and how to complete CDD that is still in progress. 

We're still working on a number of additional enhancements including the ability to drill through ownership structures to identify ultimate beneficial ownership by natural persons, an "AML Compliance Officer" user role, providing access to independent guidance on country risks and more.

More AML/CFT webinars
Learn how to manage your AML obligations in Connectworks (30mins). We're still getting record attendance numbers for our AML/CFT webinars, so have scheduled three more. Click the links below to register:
Friday 2nd August @ 11am - Register
Tuesday 6th August @ 2pm - Register
Thursday 8th August @ 10am - Register

New features and reports - Assets and Liabilities (Trusts)
A new "Account filter" has been added to the Assets & Liabilities reports.
This account filter will allow users to select the account/s that will populate into the Assets & Liabilities ledger reports. Cases where this filter may be used include: excluding fully-gifted debt accounts from the Debt & Gifting report, or reporting on distributions made to specific beneficiaries. 

Edit Assets & Liabilities reports in situ. This functionality has been added to allow users to edit entries and accounts in Assets & Liabilities reports from the Reports page itself (screenshot below). This will make editing information before generating reports much faster and easier. 

Two new reports are also available: Assets Bought and Sold, and Financial Position.

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Webinars 
We use GoToWebinar - simply register for this months live sessions below. You are also welcome to visit our Training Video Platform to view recordings of our most popular topics at your own pace. If you would like to arrange a one-on-one training webinar for your firm get in touch with us at enquire@connectworks.com

Companies overview
A high-level overview on all company functionality including annual return processing. 45mins. 
Friday 9th August @ 1pm - Register

Trusts overview
A high level overview on all trust & trustee company functionality. 45mins.
Wednesday 7th August @ 1pm - Register

Training for existing users
This month we are running three 30-min sessions on document management, starting with the basics and building up to advanced usage. Register for just one webinar or all three, it's free to attend! We will provide handouts for each session to registrants on the day.

Session 1: The basics of document management
Tuesday 13th August @ 3pm - Register

  • Uploading historic documents (Companies & Trusts)

  • Document Tagging and filtering

  • Document naming convention

  • Downloading documents

Session 2: Client engagement
Tuesday 20th August @ 3pm - Register

  • Emailing documents

  • Using precedents

  • Three methods of signing

Session 3: Advanced document signing
Tuesday 27th August @ 3pm - Register

  • Setting signing policies

  • Document signing when a trustee/shareholder is a company or a trust


Quote of the month
"Tough times go away. Tough people do not."
- Walter Payton

June two minute update

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Your DIA AML/CFT reporting deadline is approaching - Are you ready?
The deadline for most firms’ first DIA annual report is in just 2 months time. Connectworks offers an easy, workflow-driven process for AML/CFT compliance based on DIA requirements, and also includes cheap and robust ID checks. Importantly, it has reports available to help you easily complete questions 6.17 to 6.22, 7.1 to 7.5 and 11.4 in Part 3 of your report.

With Connectworks you can know, and show, you have a robust AML solution to auditors and others. The AML functionality is automatically included with entity management subscriptions, or can be used as a stand-alone solution.
Our next webinar demonstration is Friday 5th July @ 3pm - Register 

New functionality for CRS and FATCA reporting.
A number of fields relating to CRS and FATCA have been added to, or
modified, within the Tax & Finances section of a trusts profile. These are:

  • New field: Subject to CRS reporting (Subject to FATCA has been available for several years).

  • Financial classification: This is a drop down menu allowing firms to
    indicate a trust’s type, from a financial point of view. The options are:
    Not specified (default), Passive Non-Financial Entity, Active Non-Financial
    Entity, Reporting NZ Financial Institution, and Non-Reporting NZ Financial Institution.

  • New field: Tax residency country.

  • New Field: Global Intermediary Identification Number (GIIN) number. This number is required where an entity is subject to FATCA.

  • IRD number has been renamed as IRD/Taxpayer Identification Number to
    allow the recording of tax numbers for jurisdictions other than New Zealand.

The new fields have also been added to the Trusts report and the Trust Profile report. They are currently only available in trust profiles, but in due course will be added to company and individual profiles as well.

More information on CRS (Common Reporting Standards) can be found here.

Helping staff adapt to new technology
As business becomes increasingly digital, it’s naturally important that staff embrace the required changes. We like the following article’s practical guidance on this topic: Nine Ways To Help Employees Adapt To New Company Technology.

New trust types
We’ve added new options to the trust type dropdown menu in the trust profile. In addition to the existing trust types you can now select: Business Value Protection TrustLiving TrustProperty TrustTestamentary Trust and Standby Trust.

Updated workflows (Companies)
Eight workflows relating to shareholder and shareholding changes to have been updated with advice to check shareholder continuity tracking.
Shareholder continuity tracking in Connectworks is an easy 3-step process:
Step 1. Ensure the shareholding details (including shareholder rights) are correct in Connectworks.
Step 2. Press the button to produce the shareholder continuity tracking report.
Step 3. Look up the continuity details on the resulting table.

Staff not getting our newsletters?
We recently found that we had a large number of professional Connectworks users who were not on our mailing list to receive these monthly newsletters and user updates. If there are staff at your firm who should be receiving our newsletters and updates but aren’t, please email enquire@connectworks.com with their name and email address in the heading, or direct them to our registration form available here.

Why Connectworks is your firms best signing solution
We all know that signing documents on paper is expensive, slow, time-consuming and lacks robust security. But while it’s heading in the same direction as video stores and cheques, it will be an evolutionary transition. Firms we meet commonly have examples such as a father / daughter business where he doesn’t want to sign electronically and she doesn’t want to deal with bits of paper, envelopes and posting.

Flexibility is therefore the key to success. And in our opinion, Connectworks offers more flexibility than some of those big global solutions you’ve heard of, which don’t work well when a signatory doesn’t want to sign electronically. With Connectworks there are 4 ways to sign;

  1. Electronically on screen

  2. By inserting a signature saved securely in Connectworks

  3. By printing, signing, scanning and uploading

  4. Upload a document wet-signed by one or more clients or staff

Connectworks even supports any combination of these 4 methods on the same document. Other features of Connectworks signing functionality include:

  • The ability to upload and distribute any document for signing (not just ones generated from Connectworks library of over 400 precedents).

  • Set a signing policy against a client entity (e.g. One director and a witness, or Two Directors). The document is deemed signed once that criteria is met.

  • Connectworks even supports the witnessing of electronic signatures.

  • It’s easy to identify outstanding signatures on documents and resolution approvals.

  • Your firm can have a branded client portal at no extra charge. This means that your firms branding will appear for your clients when they log in to Connectworks.

  • The branded client portal can also act as a private digital vault for your clients’ important documents.

  • On a client-by-client basis, you can choose between login-free signing (easier for infrequent signers) or login-required (more secure).

  • An unlimited number of documents can be signed for just a few dollars per client, per annum. You can have signing-only plans for individual clients (those not involved in a company or trust you manage) for just $5 per annum.

  • Document Packs enable the efficient collating, sending, signing and tracking of multiple documents. It’s especially great for year-end or when there are corporate actions.

Register for our Document Signing & Client Portal webinar below to learn more!

Webinars 
We use GoToWebinar - simply register for this months live sessions below. You are also welcome to visit our Training Video Platform to view recordings of our most popular topics at your own pace. If you would like to arrange a one-on-one training webinar for your firm get in touch with us at enquire@connectworks.com

Companies overview
A high-level overview on all company functionality including annual return processing. 45mins. 
Thursday 4th July @ 3pm - Register 

AML/CFT in Connectworks
Learn how to manage your AML obligations in Connectworks. 30mins.
Friday 5th July @ 3pm - Register 

Trusts overview
A high level overview on all trust & trustee company functionality. 45mins.
Monday 8th July @ 3pm - Register 

Document Signing and Client Portal
Lean about Connectworks flexible signing options and the Branded Client Portal.
30mins.
Monday 11th July @ 3pm - Register