Know your AML CFT risks and implement a successful programme | Training sessions in June

First of all, thank you - as the compliance officer for your business you are vital to mitigating the risk of your business being misused by criminals.

One of our roles as supervisor is to help you comply with the AML CFT legislation as well as monitor and assess risks across your business sector. It's your role to understand how these risks apply to your business and put an effective programme in place to mitigate them.

Read more to find out about upcoming training to help you to do this well, observations from our regulatory visits and some lessons learned from recent enforcement actions. There's also an update on the new secure platform, AML Online that you'll be able to use to submit this year's annual report and more.

In this issue:

Observations from our regulatory visits
Training available to help you
Lessons learned from recent enforcements
AML Online a new way to engage

Observations from our regulatory visits

In our recent regulatory visits some observations and trends have emerged. With our newly joined sectors, we have found that many risk assessments are too light in detail and the risks specific to the business are not adequately thought through.

Tailor your risk assessments

Risk assessments must be tailored to your business and consider the range of ML/TF risks your business may face, for example from your customers, by the products and services you offer and the countries you deal with. The risk assessment guideline can help you with this.

Focus on practical processes in your AML CFT Programme

Sectors who have needed to comply with AML CFT for longer are doing well at their written documents (i.e.. Risk Assessment and AML CFT Programme). However, when we undertake onsite inspections we often find that when the effectiveness of the AML CFT policies, procedures and controls are tested, many are failing. It’s important to focus on practical processes that are easy to implement and maintain.

Training to help you at 14 locations nationwide in June

We are running a series of 16 training workshops at 14 locations nationwide to help you understand what is needed to get your risk assessment and your AML CFT programme right and to comply with the law.

Check out the details and sign up if you are interested. These are for all sectors.

Lessons learned

We have had two recent cases of businesses who were non-compliant with their AML/CFT requirements. Read the newsfeed about Denton Morrell Limited and one to be announced shortly for more insight into these cases. Make sure that your business is:

keeping tabs on your customers by conducting customer due diligence and ongoing reviews
adequately monitoring accounts and transactions as well as source of funds/wealth verification when required
identifying the risks specific to your business in your written risk assessment
updating your AML CFT programme regularly to mitigate the risks in your business.

AML Online and Website changes

If you haven’t already, please visit our refreshed website www.dia.govt.nz/amlcft. Content is now organised by your business sector which should make it much easier to find guidance.

Work is also underway on AML Online, a new secure platform to engage with us online. In AML Online, you will be able to manage your business details, delegate access to others, submit documents securely, and send us queries. This year you will be able to submit your annual reports entirely online. This replaces the process used in previous years where a manual PDF had to be completed and emailed through to us.

Our goal is to reduce the compliance burden and make it easier for you to engage with us.

AML Online will be available in mid June in time for annual reporting and we’ll send you an activation link beforehand. You can start preparing for this by getting your RealMe verified identity.