AML/CFT regulations: Tranche 2 consultation

Overview

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) aims to detect and deter money laundering and terrorism financing. It requires certain businesses to put anti-money laundering and countering financing of terrorism (AML/CFT) measures in place. These include assessing the money laundering and terrorism financing risks their business may face, establishing a compliance programme, confirming their customers’ identities, and reporting suspicious activities.

Banks, casinos and a range of financial service providers (‘Phase 1 reporting entities’) have been subject to the Act since 2013.

Amendments to the Act in 2017 extended the AML/CFT regime to cover more businesses at risk of being used to launder money and finance terrorism (referred to here as ‘Phase 2 reporting entities’). A staged approach is being taken to implementation of these businesses which include:

• Lawyers, conveyancers and trust and company service providers – must comply from 1 July 2018
• Accountants – must comply from 1 October 2018
• Real estate agents – must comply from 1 January 2019
• The New Zealand Racing Board and certain businesses that deal in high value goods (such as cars, boats, jewellery, art) – must comply from 1 August 2019.

This consultation covered the second tranche of Regulations related to the real estate agents and three technical matters relating to the wider real estate sector. These were confirmed on 30 July 2018 and published in the Gazette on 2 August 2018.

• Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018

The consultation also related to the New Zealand Racing Board. These Regulations are not yet confirmed.

A further tranche of Regulations relating the dealers in high value goods will be developed over the coming months.

Consultation closed 12 June 2018