Services › Anti-Money Laundering › AML/CFT Act and Regulations
- About the AML/CFT Act
- AML/CFT Regulations and Commencement Order 2011
- Shared compliance officer for DBGs
About the AML/CFT ActThe Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) places obligations on New Zealand’s financial institutions and casinos to detect and deter money laundering and terrorism financing.
The Act will ensure that businesses take appropriate measures to guard against money laundering and terrorism financing. This enhances the reputation of individual businesses, and of New Zealand as a safe place in which to do business.
AML/CFT Regulations and Commencement Order 2011The Anti-Money Laundering and Countering Financing of Terrorism Act Commencement Order 2011 brought the full AML/CFT Act into force on 30 June 2013. This gave reporting entities time to prepare for the new regime. Businesses must be compliant with all of the obligations within the AML/CFT Act and Regulations that apply to them on this date.
There are four sets of AML/CFT Regulations:
Definitions RegulationsThe Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011 commence on 28 July 2011 and will:
- Include certain financial advisers and trust and company service providers
- Exclude certain entities from the Act
- Establish thresholds for occasional transactions and beneficial ownership
- Extend eligibility for designated business groups and establish the procedure for electing to be a member.
Exemptions RegulationsThe Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 commence on 30 June 2013 and:
- Exempt some transactions and services from the Act or parts of the Act
Requirements and Compliance RegulationsThe Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Regulations 2011 come into force on 30 June 2013 and:
- Require customer due diligence to be carried out on anonymous accounts
- Require information to be collected about beneficiaries of trusts that are customers of reporting entities
- Expand the scope of entities to which simplified due diligence can be applied
- Prescribe annual reporting requirements.
Ministerial Exemption Form RegulationsThe Anti-Money Laundering and Countering Financing of Terrorism (Ministerial Exemption Form) Regulations 2011 comes into force on 28 July 2011 and will:
- Prescribe the form in which the Minister must make Ministerial exemptions
Shared compliance officer for DBGsWhere related reporting entities form a designated business group (DBG), the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) permits them to share certain obligations under the Act. Whilst the Act does not extend this to sharing a compliance officer, a Ministerial exemption has been approved for this purpose. This enables a single compliance officer to administer and maintain the AML/CFT programmes of every reporting entity that is a member of a DBG. This is intended to improve effectiveness by sharing compliance expertise across the DBG, as well as reducing compliance costs for those reporting entities within it. The current exemption came into force on 30 June 2013 and will expire on 30 June 2018.
Whether the exemption is extended beyond 30 June 2018 will be considered closer to this date. We will keep reporting entities up to date.
For further information regarding the process for forming a DBG, please refer to the Guidelines.