Phase 2 AML/CFT exposure draft amendment Bill

Overview

In December 2016 and January 2017, we sought feedback on an exposure draft of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Amendment Bill.

This consultation was part of the Government’s move to put in place “Phase 2” of the current AML/CFT Act.

Phase 1 of the AML/CFT laws came into effect in 2013, covering banks, various financial services and casinos.

Phase 2 will extend the laws to cover real estate agents, conveyancers, many lawyers, accountants, and some additional gambling operators and some businesses that trade in high-value goods such as cars, boats, jewellery, bullion, art and antiquities.

Evidence shows these businesses are at high risk of being targeted by criminals to launder money.

Your feedback informed the final draft of the Bill, which is now being considered by Parliament.

What was proposed?

The proposed changes aim to strike a balance between combating crime, minimising costs and enabling New Zealand to meet its international obligations.

The proposed details of Phase 2 were set out in the draft amendment Bill:

Exposure draft of the AML/CFT Amendment Bill (PDF, 270 KB)

The proposals were explained in the information paper about the draft Bill.

AML/CFT information paper (PDF, 441 KB)

The information paper asked several questions. We asked for input on 3 key issues:

• Is the exposure draft of the AML/CFT Amendment Bill clear and does it accurately reflect the initial proposals outlined in this paper?
• Can businesses use provisions in the Bill to reduce compliance costs associated with Phase 2?
• What else can be done to help businesses reduce compliance costs associated with implementation of Phase 2?

While the focus was on issues related to Phase 2 sectors, some of the proposed reforms will also affect Phase 1 businesses.

Summary of submissions

Read the summary of submissions:

Submissions Analysis of the Exposure Draft Amendment Bill for Phase 2 of the AML/CFT Reforms

You can also read a summary of key points from workshops with real estate agents, lawyers, conveyancers, accountants and high value dealers on ways to reduce AML/CFT compliance costs.

Summary report on workshop feedback on ways to reduce cost compliance

What happens next?

Your feedback informed the final draft of the Bill, which is now being considered by Parliament.

There will be further opportunities to comment on and influence the shape of the proposed law reforms when the Bill is considered by a Parliamentary select committee.

The Government intends to pass the law about the middle of 2017. After that, businesses will have a period of time to prepare for the changes.  

Previous consultation

The proposals in the exposure draft Bill were informed by an earlier consultation, which took place in August and September 2016.

Find out more about that consultation, including the submissions received.