Is your business subject to the requirements of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009?

21 July, 2023 | Marie Hansen

It is estimated that $1.35 billion is laundered in New Zealand every year. To combat this, the New Zealand government passed the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, which came into effect in stages, starting from 2013.

The purpose of the legislation is to detect and deter money laundering and financing of terrorism by placing obligations on entities of the type commonly targeted by money launderers.

Businesses subject to the legislation (called ‘reporting entities”) are required to:

• undertake a risk assessment to identify the risk of money being laundered or terrorism being financed through their business;
• implement policies and procedures to detect and deter money laundering and financing of terrorism, including conducting due diligence on their customers; and
• report annually to their supervisor (the Department of Internal Affairs (DIA), Financial Markets Authority (FMA) or the Reserve Bank, depending on the type of reporting entity they are).
• Report suspicious activity to the Police Financial Intelligence Unit (FIU).

The following types of businesses are subject to the AML/CFT laws in New Zealand include:

• High value dealers (businesses who buy or sell jewellery, precious metals, precious stones, watches, motor vehicles, boats, art or antiquities, and accept or make cash payments (or a series of related cash payments) of $10,000 or more).
• Real Estate Agents
• Life insurers
• Financial advisers
• Trust and Company Service providers
• Issuers of securities
• Futures dealers
• Collective investments schemes
• Brokers
• Non deposit taking lenders
• Money remitters
• Non-bank deposit takers
• Casinos and sports/racing betting businesses.
• Banks
• Accountants
• Lawyers and Conveyancers

Understanding and complying with Anti-Money Laundering legislation in New Zealand is vital for businesses operating in the affected sectors. By adhering to these laws, businesses contribute to the collective effort to combat financial crimes and ensure the integrity of our financial system.

Businesses who fail to comply with the legislation can be subject to audit and investigations by their supervisor, resulting in court proceedings and significant fines. Individuals that are found to be complicit with or assist money launderers can face imprisonment.

At Smith and Partners, our team of experienced lawyers is well-versed in AML compliance matters and can provide tailored guidance to businesses seeking to understand and comply with their AML obligations. By partnering with us, you can navigate the complexities of AML requirements with confidence and ensure a secure business environment for all.

Do you need advice on how to meet your obligations under AML/CFT Laws? Contact expert AML Compliance Lawyer, Marie Hansen today to set up an appointment to discuss how we can help make your business or organisation compliant. Phone 09 836 0939 or email marie.hansen@smithpartners.co.nz.