The Department of Internal Affairs

The Department of Internal Affairs

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Services › Anti-Money Laundering › Codes of Practice and Guidelines

Territorial Scope of the AML/CFT Act 2009

Territorial Scope of the AML/CFT Act 2009

This guideline is designed to help reporting entities understand the territorial scope of the AML/CFT Act and assist them to determine whether they have obligations under the Act.

Beneficial Ownership Guideline

A key task in meeting the requirements of the AML/CFT Act is to identify and verify customers’ beneficial ownership arrangements. This guideline is to assist reporting entities in meeting the requirement to perform customer due diligence on the customer and beneficial owners of the customer.

Customer Due Diligence Fact Sheets

These fact sheets are designed to help reporting entities understand the identification and verification requirements for different types of customers. The fact sheets should be read in conjunction with the beneficial ownership guideline.

Guideline for Audits of Risk Assessments and AML/CFT Programmes

This guideline is designed to help reporting entities with the requirement to audit their AML/CFT risk assessment and AML/CFT programme. The guideline provides an overview of the what to consider when arranging and carrying out the audit.

Countries Assessment Guideline

This guideline is designed to help reporting entities decide when an assessment of another country's AML/CFT regulatory environment is required, and provides guidance on how to undertake this assessment.

Designated Business Groups Guideline

Scope Guideline

This guideline is designed to assist reporting entities to understand which obligations may be shared by members of a designated business group.

Formation Guideline

This guideline is designed to help reporting entities understand the process for forming a Designated Business Group. This guideline highlights the eligibility criteria and election process, and explains the process for notifying an AML/CFT supervisor of the formation of a DBG, any addition or withdrawal of a member, or any change in details.

AML/CFT Programme Guideline

The guideline is designed to help reporting entities develop their AML/CFT programme as required under section 56 of the AML/CFT Act. The guideline sets out the minimum requirements for a AML/CFT programme and outlines who is responsible for a reporting entity's AML/CFT programme. Reporting entities must have established an AML/CFT programme when the Act comes fully into force on 30 June 2013 (unless they are exempt from this requirement).

In the Ordinary Course of Business Guideline

This guideline is designed to help clarify the meaning of the phrase “in the ordinary course of business” in the definition of financial institution in the AML/CFT Act.

The meaning of this phrase is important if your business carries on an activity that is listed under the definition of financial institution. If the activity is in your “ordinary course of business”, your business will be a reporting entity under the Act.

Identity Verification Code of Practice 2011

NEW! Proposed changes to Identity Verification Code of Practice May 2013 (.pdf) 103kb

A proposed revised Identity Verification Code of Practice has been released for consultation pursuant to section 64 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

This updated version caters for and reflects the latest improvements in identification practice. For your convenience the key amendments in the document are marked as track changes.

Responses should be sent by close of business on 28 June 2013 to Angela Ibbotson at angela.ibbotson@dia.govt.nz

On 1 September 2011 the Identity Verification Code of Practice 2011 was gazetted. The code comes into force on 30 June 2013. This code of practice will help reporting entities verify the name and date of birth of customers (that are natural persons) they have assessed as low to medium risk. This code covers documentary identity verification, document certification and electronic identity verification.

Reporting entities may use this code to comply with customer due diligence requirements as required by the following sections of the AML/CFT Act:
  • Section 16 – standard customer due diligence: verification of identity requirements
  • Section 20 – simplified customer due diligence: verification of identity requirements
  • Section 24 – enhanced customer due diligence: verification of identity requirements
  • Section 28 – wire transfers: verification of identity requirements.
Complying with a code of practice is not mandatory, although it constitutes a safe harbour. If a reporting entity fully complies with the code it is deemed to be compliant with the relevant parts of the AML/CFT Act. If a reporting entity opts not to comply, it must notify its supervisor that it is opting out and adopt practices that are equally effective, otherwise it risks non-compliance.

For more information see our media release: New anti-money laundering code sets standard for customer ID checks (1 September 2011)

Risk Assessment Guideline

The AML/CFT Risk Assessment Guideline is designed to help reporting entities conduct a risk assessment, as required under section 58 of the AML/CFT Act. A risk assessment is the first step a business must take before developing an anti-money laundering and countering financing of terrorism programme. It involves identifying and assessing the risks the business reasonably expects to face from money laundering and financing of terrorism. Once a risk assessment is completed, a business must then put in place a programme that minimises or mitigates these risks. Further guidance will be provided on the compliance programme at a later date.

Following this guideline is not mandatory. Reporting entities may choose to carry out their risk assessment using alternative methodologies, as long as they comply with the AML/CFT Act.


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