AML/CFT regulations: Tranche 1 consultation

Closed 31 Oct 2017

Opened 13 Oct 2017

Overview

The Ministry of Justice is seeking submissions on proposed regulations under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009.

Recent amendments to the Act put in place “Phase 2” of New Zealand’s AML/CFT laws. These changes affect businesses already covered by the law (known as Phase 1 reporting entities) and extended the AML/CFT regime to cover more businesses (known as Phase 2 reporting entities) that are at risk of being targeted by criminals to launder money and finance terrorism.

The proposed regulations outline how various AML/CFT measures will work in practice. Your feedback will help ensure the regulations are fit for purpose.

What is proposed?

Because the AML/CFT reforms will come into effect in stages for different sectors, the new regulations will be made in different rounds or ‘tranches’.

This consultation covers the first tranche which relates to:

  • prescribing the information that Phase 1 and 2 entities need to provide when they submit a Suspicious Activity Report
  • prescribing the annual report form for many of the Phase 2 entities
  • clarifying the scope of an 'occasional activity' under the AML/CFT Act
  • several minor and technical amendments to four existing AML/CFT Regulations.

These draft regulations address measures that come into effect from 1 July 2018, including matters related to the Phase 2 reporting entities that have to comply with the Act from that date (that is, lawyers, conveyancers and trust and company service providers). They also address wider changes which affect Phase 1 and Phase 2 entities (such as suspicious activity report requirements).

How to have your say

You can:

Please send us your views by 5pm Tuesday, 31 October 2017.

Next steps

We anticipate that final decisions on the first tranche of regulations will be made in December, and they will come into effect by February 2018.

Other technical changes and sector-specific regulations, for example, timing of customer due diligence for real estate agents, will be addressed in 2018.

Personal information and confidentiality

We will hold your personal information in accordance with the Privacy Act 1993.

We accept submissions made in confidence or anonymously. Please clearly indicate if you want your submission to be treated as confidential.

We may be asked to release submissions in accordance with the Official Information Act 1982 and the Privacy Act 1993. These laws have provisions to protect sensitive information given in confidence but we can’t guarantee the information can be withheld. However, we won’t release individuals’ contact details.

 

Audiences

  • NZ private sector

Interests

  • Anti-Money Laundering and Countering Financing of Terrorism