Services › Anti-Money Laundering › AML/CFT Act and Regulations
- About the AML/CFT Act
- AML/CFT Regulations and Commencement Order 2011
- Policy decision on 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
Policy decision on shared compliance officer for DBGsThe Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) permits related reporting entities to share certain obligations under the Act. While the Act allows related reporting entities to share certain obligations through the formation of a designated business group (DBG) it does not allow members to share a single compliance officer. Industry view is that a single compliance officer would improve effectiveness through sharing compliance expertise, would reduce compliance costs to reporting entities and would align better with the purpose of a DBG.
The Minister of Justice has approved Cabinet consideration of a shared compliance officer policy that will allow members of a DBG to appoint one person as compliance officer for the DBG if all members adopt a joint AML/CFT programme. The policy is subject to Cabinet approval and the Minister of Justice intends to take the issue to Cabinet in February 2013. It is proposed that an exemption that would permit DBGs to share a compliance officer across their corporate structure will be included in the final regulations currently being developed by the Ministry of Justice. Conditions that might apply to an exemption are still to be considered.
We will keep reporting entities up to date on progress with these proposals.