The Department of Internal Affairs

Te Tari Taiwhenua | Department of Internal Affairs

Building a safe, prosperous and respected nation



 

Information for High Value Dealers

High Value Dealers Guideline

This guide is designed to help high value dealers develop an understanding and meet their obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act).

High Value Dealers Factsheet

If you are a high value dealer (HVD) and are covered by the Anti-Money Laundering Act (AML/CFT Act) you will have compliance obligations from 1 August 2019.

Only HVDs who deal in cash transactions equal to or above NZD10,000 will be covered by the AML/CFT Act. The threshold value has not yet been defined in the regulations.

The following factsheet provides information on when HVDs are covered by the AML/CFT Act and includes a high-level overview of their compliance obligations:

These additional factsheets provide further information relating to the money laundering/terrorism financing (ML/TF) risks associated with the different types of HVD:

Frequently Asked Questions

Frequently Asked Questions for High Value Dealers

Regulatory approach for High Value Dealers

We take a risk-based approach to our supervision of high value goods dealers (HVDs). We focus on those HVDs which are more at risk of being misused by criminals.

We have engaged with HVD trade associations so that we can understand where the risks and challenges lie for HVDs. We’ve also undertaken sector wide engagement and education to ensure HVDs have all the information they need to understand their AML/CFT compliance obligations. HVDs have fewer AML/CFT obligations than other reporting entities.

From 1 August 2019 we will undertake visits to HVDs to check they are complying with their AML/CFT obligations. We may ask HVDs to demonstrate their processes for meeting their compliance obligations. This will include checking records relating to their cash transactions over $10,000 and reviewing the reports that have been submitted to the FIU. Our visits will help us identify areas of best practice and also areas that may require further attention or guidance. A visit from DIA may not mean there is something wrong, but it will help us gauge your level of understanding of your AML/CFT obligations and how effectively you are applying them. In some instances, we may request that a HVD have an independent audit undertaken of their level of compliance with their AML/CFT obligations.

As the AML/CFT supervisor, our preference is to work with HVD’s to help them understand their AML CFT obligations. Although, we are prepared to investigate potential breaches of AML/CFT compliance obligations and escalate our regulatory response depending on the severity of the breach. These actions can range from formal remediation arrangements, to formal warnings, enforceable undertaking or prosecution.

Customer due diligence

In this section:

Amended Identity Verification Code of Practice 2013

On 10 October 2013 an Amended Identity Verification Code of Practice was gazetted under section 64 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). The amendments come into force on 1 November 2013.

Guidance on Expired Passports for Identification in Customer Due Diligence

This factsheet outlines how to use expired passports for identification purposes in accordance with the Amended Identity Verification Code of Practice 2013:

Providing Proof of Identification

When engaging in cash transactions equal to or above NZD10,000, HVDs need to ask their customers to provide proof of identification to be able to comply with the AML/CFT Act. The following CDD information sheets can be used to help your customers understand why they are being asked to provide proof of identification.

Customer Due Diligence information sheet: proof of identification

This information sheet is available in English, Maori, Chinese, Samoan and Hindi:

Factsheet: Birth Certificates with Redacted Information

This document outlines the position the AML/CFT Supervisors have taken on birth certificates with redacted information (other than name and date of birth) as a form of identification under the Identity Verification Code of Practice.

Statement of Kiwi Access Card

This document outlines the position the AML/CFT Supervisors have taken on the kiwi access card as a form of identification for the purposes of Identity Verification Code of Practice.

Outsourcing Customer Due Diligence

Outsourcing CDD typically occurs during the onboarding process for a new customer. While these providers can provide a useful service, we want to remind reporting entities that outsourced CDD does not exist in isolation from their wider CDD procedures and obligations.

In the Ordinary Course of Business Guideline - Updated December 2017

This guideline is designed to help clarify the meaning of the phrase "in the ordinary course of business" in the definition of HVD in the AML/CFT Act:

This December 2017 update replaces the previous version published in 2012.

Designated Non-Financial Businesses and Professions and Casinos Sector Risk Assessment – December 2019

The Designated Non-Financial Businesses and Professions and Casinos Sector Risk Assessment (DNFBP SRA) is a review of the characteristics of the sectors covered by the AML/CFT Act - lawyers, conveyancers, accountants, real estate agents, high value dealers and the New Zealand Racing Board. The SRA is intended to help AML/CFT supervisors understand the money laundering and terrorism financing risks across these sectors and assist reporting entities by providing guidance on the specific risks and vulnerabilities relevant to their business.

NZ Police Financial Intelligence Unit (FIU)

The FIU collects, analyses and disseminates financial intelligence relating to suspicious transactions/activities, money laundering and the financing of terrorism. 

NZ Financial Intelligence Unit (NZ Police website)

The FIU has also released the National Risk Assessment (NRA) and a support document under the AML/CFT Act 2009. 

The NRA is designed principally for the use of the Ministry of Justice, AML/CFT supervisors, and the New Zealand Customs Service. The NRA may also be useful to reporting entities in understanding the broader picture of money laundering and terrorist financing risks at a national level.

The NRA can be found on the Police website.

Other Customer Due Diligence Guidelines

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.

On 9 July 2021 the Anti-Money Laundering and Countering of Financing of Terrorism (Requirements and Compliance) Amendment Regulation came into force. The companies and partnerships guidance assists reporting entities to understand and implement the requirement to undertake customer due diligence for nominee directors and nominee general partners. 

Designated Business Groups Guidelines

Designated Business Group - Scope Guideline (updated October 2022)

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

This October 2022 update replaces the previous version published in 2017.

Designated Business Group - Formation Guideline (updated October 2022)

This guideline is designed to help reporting entities understand the process for forming a Designated Business Group. This guideline also explains the process for notifying an AML/CFT supervisor about the formation of, or change to, a designated business group and provides the forms for doing so.

This October 2022 update replaces the previous version published in 2020.