Your obligations - AML/CFT

FMA's 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. You can also read sector risk assessments prepared by the Reserve Bank and the Department of Internal Affairs for the sectors they supervise, and the national risk assessment.

This guideline is designed to help you conduct your money laundering and terrorism financing risk assessment (risk assessment) under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 (the Act).

Download the Supervisor's risk assessment guide to AML/CFT obligations PDF, 155KB.

This guide describes how a small financial adviser business may go about AML/CFT obligations in a simple way. It focuses on risk assessments, customer due diligence (CDD) and suspicious transaction reports (STR) because they are particularly important obligations under the AML/CFT regime, which affect financial advisers in a unique way.

Download the AML/CFT guide for small financial adviser businesses PDF, 570KB.

• the nature, size and complexity of your business
• the types of products or services you provide
• the methods by which you deliver products and services to your customers.
• the types of customers you deal with
• the countries you deal with
• the institutions you deal with
• any other applicable guidance material produced by the AML/CFT supervisors.

• Engage an independent and qualified auditor early – this is to ensure one is available to assist you.
• Review and address issues in your risk assessment, AML/CFT compliance programme and supporting policies and procedures internally before the independent audit.
• Refer to the guidelines and reports and our AML/CFT FAQs that detail specific information on what is necessary to complete your AML/CFT audit.
• It will take time for your auditor to review your risk assessment, compliance programme, test supporting evidence and prepare an audit report. You should also allow sufficient time (sometimes up to several weeks) to review the audit findings, and agree with the final report.

This guideline is to help reporting entities manage the requirement to audit their AML/CFT risk assessment and AML/CFT programme, as required under section 59(2) of the AML/CFT Act.

Download the Audit Guideline for risk assessment and AML/CFT programme PDF, 290KB.

This information is intended to help our REs, especially small financial adviser businesses, get value from their AML/CFT Audit. Adopting all (or any) of these items in discussions with auditors is optional, but we believe that by considering these suggestions, REs are more likely to achieve the best possible results from their audit.

Download Getting the best outcome from your AML/CFT audit guide PDF, 1.3MB.

This report provides a general commentary on some of the audits we have examined from the period from 1 July 2016 to 30 June 2018, which marked our fifth year of monitoring compliance with the Act. We focused on risk assessments being up to date and well-maintained; adequacy and effectiveness of policies, procedures and controls as per the AML/CFT programme; customer due diligence, ongoing customer due diligence and enhanced due diligence; governance and management oversight. 

Download the AML/CFT monitoring report 2018 PDF, 265KB.

In the case of an international wire transfer, the first reporting entity to transfer funds, and the last reporting entity to receive funds, must do a PTR. We expect that a reporting entity that receives and/or passes on instructions from a client to do an international wire transfer, but does not actually transfer the funds, is not required to do a PTR. This means that international wire transfers carried out by a bank on behalf of another reporting entity will be reportable by the bank. If an international wire transfer is settled outside the banking system (for example if a reporting entity carries out a transaction on behalf of a client and as a result money is made available to a beneficiary at another entity in another jurisdiction) the reporting entity must submit a PTR.

Automated reporting

Automated reporting applies to those entities submitting PTRs through the FIU xml schema. To ensure smooth implementation of automated reporting a transitional compliance period will apply until 1 July 2018. REs submitting automated reports are expected to provide PTRs as soon as they are able from 1 November 2017. However, REs will not be considered non-compliant prior to the end of the transitional compliance period (1 July 2018).

Manual reporting

Manually reporting applies to entities submitting reports one-by-one into the goAML web tool. REs submitting PTRs manually to the FIU are expected to report from 1 November 2017. PTRs will be used by FIU to help build an intelligence picture across the financial system. Please refer to the FIU website for more information. If you have any further questions please email us at aml@fma.govt.nz.