The Department of Internal Affairs

The Department of Internal Affairs

Te Tari Taiwhenua

Building a safe, prosperous and respected nation


Services › Anti-Money Laundering › Sector and National Risk Assessments

These documents will be reviewed regularly.

Phase 2 AML/CFT Risk Assessment 2017

The Phase 2 Sector Risk Assessment (SRA) is a review of the characteristics of the new sectors covered by the AML/CFT Act - lawyers, conveyancers, accountants, real estate agents, high value dealers and the New Zealand Racing Board. The Phase 2 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.

AML/CFT Risk Assessment and Programme: Prompts and Notes for DIA reporting entities (Prompts and Notes)

This guideline provides reporting entities with a series of questions, supervisory expectation, reference material and suggested best practice that will help guide their risk assessment and programme. It provides a starting point, which can be supplemented with more detailed information provided by DIA supervisors. This guideline can be used by all DIA-supervised reporting entities, both small and large.

This guideline is not mandatory. Reporting entities may choose to use alternative methodologies to conduct their risk assessment and develop their programme.

Phase 1 AML/CFT Sector Risk Assessment Guides 2014

Help with assessing your money laundering risk

These guides provide you with help in thinking about how money launderers might use your business putting it at risk.

They will also help you conduct or revise your risk assessment which is compulsory under section 58 of the Anti-Money Laundering and Countering Financing of Terrorism Act.

We have used examples from overseas and international organisations such as the Financial Action Task Force. These examples may have reference to your business. Examples of how people launder money in New Zealand are in the Police National Risk Assessment.

The guides are not intended to replace your own risk assessment of your business. A copy of these guides is not a reporting entity risk assessment.

How to use the guides

There is a separate guide for each type of business that we regulate under the Anti-Money Laundering and Countering Financing of Terrorism Act.

Go to the guide that describes your business. You may need to look at more than one guide if your business provides more than one type of service.

In each guide there is a table to help you assess your business and the risk money laundering may pose to it.

The left-hand column of the table identifies some features that may be present in products or services that your business offers.

For each feature, reasons that might increase the risk of money laundering are in the 'higher risk factors' column. Reasons that might decrease the risk are in the 'lower risk factors' column.

In preparing your risk assessment, you should not wholly depend on the table. You should consider any special features of your business which might increase or lessen the risk.

Your anti-money laundering and countering financing of terrorism programme must include procedures, policies and controls to manage and lessen the risks identified in your risk assessment.

Phase 1 AML/CFT Sector Risk Assessment 2011

The Sector Risk Assessment (SRA) is a review of the characteristics of certain sectors of the financial system. It assesses the level of risk of money laundering occurring in that sector and outlines any particular risks in that area.

The Department of Internal Affairs' SRA is a preliminary assessment looking at the risks of money laundering in casinos, money service businesses, payroll remittance, lending, financial leasing, safe deposit/cash storage and non-bank credit card providers for the purposes of the AML/CFT Act.
The SRA is intended to help AML/CFT supervisors to understand the money laundering risks across the sector they will supervise, and assist reporting entities by providing guidance on the specific risks relevant to their sector or sub-sector.

Businesses are required to undertake a risk assessment of their business and should use the information in the SRA to help determine the risks that are relevant to their business. They should then incorporate any relevant risks in their own business money/terrorist financing risk assessment.

For more information please see our media release: Anti-money laundering risk assessment released (29 March 2011)

NZ Police Financial Intelligence Unit National Risk Assessment

The Financial Intelligence Unit of the New Zealand Police has 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.

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