Regulations to support high value dealers to comply with the AML/CFT Act

Closes 15 Feb 2019

Consultation Contents

We have two regulations we would like to receive your input on:

  1. Setting the applicable threshold for high value dealers at $5,000, $10,000 or $15,000
  2. Clarifying obligations for registered auctioneers

You can find the links to these questions below. You'll also find some questions to gather some personal information from you. This information is optional, but it will help us analyse your submission and allow us to get in touch if we have any further questions.

Buying and selling high value assets is attractive for criminals because such transactions can avoid interaction with the financial sector. Many such assets may be easily hidden and can be transferred to third parties with limited documentation. In particular, criminals may buy such goods with cash (that is, physical currency) and give them to other parties to avoid detection by financial institutions.

The money laundering and terrorism financing risks associated with high value goods include:

  • In New Zealand, valuable assets such as silver and gold, jewellery and precious stones, cars, boats, artwork and other items have been associated with offenders.
  • Criminals may also use cash to buy high value goods such as jewellery or watches, then travel overseas with them to transfer value while avoiding detection by financial institutions.
  • Organised crime groups may use cash to purchase high value goods then sell them for cash, so they can disguise the origin of the funds and deposit the money into the financial system without raising red flags.
  • Criminals use criminal proceeds to buy real estate and luxury goods such as motor vehicles and boats for personal use.

Introducing AML/CFT measures will deter criminals from using those services and help detect them if they do. Importantly, it will also strengthen the overall AML/CFT system. It will make it harder for criminals to move cash anonymously using high value goods. Reporting by high value dealers will provide valuable information and help make it easier to detect crime.

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Setting the applicable threshold (Required)
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Clarifying obligations for registered auctioneers
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About you
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