Welcome to the August issue of Compliance News

Kia ora koutou,

We take a system-based approach to our role as a supervisor and to support this approach in this issue we highlight two recently published reports.

One is from our system partner, the New Zealand Police Financial Intelligence Unit, and a second report is the Basel AML Index report that ranks countries risk of money laundering and terrorism financing.

I encourage you to review these reports for relevance to your money laundering and terrorism financing risk assessment and AML/CFT programme.

As you are aware, all reporting entities are required to submit an annual report to their supervisor by 31 August. We have received a significant number of submissions and appreciate the compliance officers who have completed their reports. We will commence our follow up to all those who have not yet met this requirement from next week. I ask all Compliance Officers to take heed of this reminder and ensure this report is completed and submitted with urgency.

On behalf of the entire AML Group, I thank you for your continued support in strengthening the AML/CFT system and preventing harm to your business reputation and New Zealand communities.

Ngā mihi,

Mike Stone
Director AML Group, Regulatory Services

Submissions by reporting entities of an annual report of their risk assessment and AML/CFT programme are now due. This is a legal requirement under the AML/CFT Act and we encourage all reporting entities who have not yet completed their submission to make this a priority.

Please submit your annual report through our secure platform.

Submit your annual report

Helping to build understanding of the independent audit requirement

For many businesses 2020 is the first year they are required to have an independent audit completed. We have created this webinar to help businesses understand this obligation and achieve the best results from their audit. This webinar:

Provides an overview of the independent audit obligation;
Explains the requirements for independence and an appropriately qualified auditor;
Overviews the scope and process of an AML/CFT audit; and
Highlights what questions you can expect from your auditor.

You can watch the webinar here

Country risk ratings for money laundering and terrorism financing

The Basel AML Index is an independent research-based ranking of the risk of money laundering and terrorism financing (ML/TF) of countries around the world. The Index shows many countries financial systems remain exposed to money laundering and terrorism financing risks that may impact New Zealand businesses.

Real Estate sector regulatory findings

After publishing our regulatory findings report for compliance assessments completed over the 12 months ending 30 June 2019, and in response to requests, we have published this article for the real estate sector for compliance assessments completed from 1 January 2019 – 31 July 2020.

NZ Police Financial Intelligence Unit release report

The Financial Intelligence Unit (FIU) receives and analyses information contained in reports submitted by reporting entities including Suspicious Activity Reports and Prescribed Transaction Reports. They have published a report for July 2020 that we encourage compliance officers to review.