The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) and its regulations place obligations on New Zealand’s financial institutions to detect and deter money laundering and terrorism financing.
It facilitates co-operation amongst reporting entities, supervisors, and other government agencies, in particular, law enforcement and regulatory agencies.
The FMA supervises designated business groups (DBGs) and reporting entities listed in Section 130 of the Act.
The Reserve Bank supervises banks, life insurers, and non-bank deposit takers.
The Department of Internal Affairs covers casinos, non-deposit-taking lenders, money changers and reporting entities not covered by the other supervisors.
The reporting entities supervised by the FMA are listed in Section 130 of the Act. They include:
The Minister of Justice may grant a range of exemptions to all or any of the Act’s requirements.
The Act imposes several obligations as below:
Section 58 of the Act requires each reporting entity to assess the risk it may reasonably expect to face of money laundering and financing of terrorism in the course of its business. The Act calls this a risk assessment.
A risk assessment is the first step a business must take before developing an AML/CFT compliance programme. The supervisors have issued a guideline on how to complete a risk assessment. The FMA has published a separate guideline for small financial adviser businesses.
The Act takes a risk-based approach to compliance. Reporting entities (within the limits set by the Act and regulations) have some flexibility to determine the way in which they meet their obligations based on their risk assessment. Once a risk assessment is completed, a business can then put in place an AML/CFT programme that minimises or mitigates these risks. See the AML/CFT programme guideline.
The AML/CFT programme will set out your procedures, policies and controls for detecting, managing and mitigating the risk of money laundering, and the financing of terrorism your business may reasonably expect to face. The programme must be in writing and based on your risk assessment.
All reporting entities are required to prepare an annual report on their risk assessment and AML/CFT programme. Information from these reports will provide us with important information on the people and organisations we supervise, and help us:
Annual reports can be submitted on our e-services portal www2.e-services.fma.govt.nz/.
Each reporting entity must ensure its risk assessment and AML/CFT programme are audited every 2 years or at any other time at the request of the FMA. We may also request a copy of any audit report. You do not need to submit your audit report to us unless we request to see it.
From 1 November 2017 reporting entities must submit prescribed transaction reports (PTR) to the Financial Intelligence Unit (FIU) at the Police.
The Anti-Money Laundering and Countering Financing of Terrorism (Prescribed Transactions Reporting) Regulations 2016 specify the following threshold values for the two types of prescribed transaction:
Please refer to the FIU website for more information. If you have any further questions please email us at aml@fma.govt.nz
The Anti-Money Laundering and Countering Financing of Terrorism Act provides for 2 types of exemptions:
The Ministry of Justice (MoJ) 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 Anti-Money Laundering and Countering Financing of Terrorism (Ministerial Exemption Form) Regulations 2011 prescribe the form in which the Minister must make ministerial exemptions.