AML/CFT Legislation

Overview

Money laundering is how criminals disguise the illegal origins of their money. Financers of terrorism use similar techniques to money launderers to avoid detection by authorities and to protect the identity of those providing and receiving the funds.

About the AML/CFT Act

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) places obligations on New Zealand’s financial institutions, casinos, virtual assets service providers, accountants, lawyers, conveyancers and high value dealers to detect and deter money laundering and terrorism financing.

The Act ensures 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.

The Act came into full force on 30 June 2013.

AML/CFT Regulations

Definitions Regulations

The Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011 commenced on 28 July 2011.

Exemptions Regulations

The Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 commence on 30 June 2013.

Requirements and Compliance Regulations

The Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Regulations 2011 came into force on 30 June 2013.

Ministerial Exemption Form Regulations

The Anti-Money Laundering and Countering Financing of Terrorism (Ministerial Exemption Form) Regulations 2011 came into force on 28 July 2011.

You can find the submission to the Cabinet Legislation Committee on the Ministry of Justice website, together with all other AML/CFT Cabinet papers.

Ministerial Exemptions

The AML/CFT Act provides for two types of exemptions – Regulatory exemptions and Ministerial exemptions. Regulatory exemptions are set out in the AML/CFT regulations.

The Minister of Justice may grant a Ministerial exemption from any or all provisions of the Act. Exemptions may be granted for businesses, transactions, products, services or customers and may be subject to conditions.

The Ministry of Justice invites applications for Ministerial Exemptions under the AML/CFT Act.

For further information and a copy of the Ministerial Exemption Policy go to the Ministry of Justice website.

Supervisory Framework (updated November 2019)

The AML/CFT Supervisory Framework sets out the AML/CFT framework and outlines the shared objectives, functions, powers and guiding principles of the three AML/CFT supervisors and the compliance tools and techniques available to them.

Approach to Compliance and Enforcement

The Department's approach to compliance and enforcement in this area is set out in the document:

What do businesses need to do?

section 5 of the Act you need:

  • Risk Assessment of the money laundering and financing of terrorism that you could expect in the course of running your business
  • An AML/CFT Programme that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism
  • Compliance Officer appointed to administer and maintain your AML/CFT programme
  • Customer Due Diligence processes including customer identification and verification of identity
  • Suspicious Activity Reporting, Auditing and Annual Reporting systems and processes.

Codes of practice and guidelines have been released to help you determine what your obligations are and how you can meet them.