The Government is finalising details of how to implement Phase 2 of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act, and how the law will work in practice.
Phase 1 of the AML/CFT laws came into effect in 2013, covering varoius 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.
The proposed changes aim to strike a balance between combating crime, minimising costs and enabling New Zealand to meet its international obligations.
The details of Phase 2 are set out in a draft amendment Bill:
Exposure draft of the AML/CFT Amendment Bill (PDF, 270 KB)
The proposals are explained in the information paper about the draft Bill.
AML/CFT information paper (PDF, 441 KB)
Note: An earlier version of the information paper contained an error on pages 13 and 24 in the sections about Reliance on another business. The incorrect wording was: "entity A has reasonable cause to believe that entity A has conducted customer due diligence to the appropriate standard." The correct wording (used in this version) is: "entity A has reasonable cause to believe that entity B has conducted customer due diligence to the appropriate standard."
The information paper asks 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 is on issues related to Phase 2 sectors, some of the proposed reforms will also affect Phase 1 businesses.
What happens next?
A Bill will be introduced to Parliament in early 2017. 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.
Personal information and confidentiality
We will hold your personal information in accordance with the Privacy Act 1993.
We accepted submissions made in confidence or anonymously. People who wanted their input to be treated as confidential were asked to clearly indicate that in their submission.
We may be asked to release submissions in accordance with the Official Information Act 1982 and the Privacy Act 1993. These laws have provisions designed to protect sensitive information given in confidence, but we cannot guarantee the information can be withheld. We will not release individuals’ contact details.
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.