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Welcome to Compliance News February 2021
In this newsletter, we draw your attention specifically to enhanced customer due diligence (enhanced CDD). Last year we published an updated guideline and enhanced CDD webinar to help reporting entities understand this obligation. Please use the links in this newsletter to read and listen about the importance of enhanced CDD.
An update on New Zealand’s mutual evaluation
FATF (Financial Action Taskforce) mutual evaluations are in-depth country assessments analysing the implementation and effectiveness of measures to combat money laundering and terrorist financing. Mutual evaluations are major peer reviews, where members from different countries assess another country. A mutual evaluation report is the final product of that review and provides an in-depth description and analysis of a country’s AML/CFT system, as well as recommendations to the country to further strengthen its system.
The New Zealand mutual evaluation is close to being concluded. In November last year, New Zealand completed the final major milestone when the Department hosted virtual “face to face” discussions with the FATF secretariat and assessment team. The assessors have released their draft report and the New Zealand team contributed several key points for discussion at the FATF plenary on 23 February.
Once the report is discussed and a decision on ratings has been agreed at the plenary, the final assessment report will be published on the FATF website and available for all to read. The release of the report signals the time for all of government, reporting entities and all AML/CFT system stakeholders to take stock of how well we have done and how we can continue to improve. The report provides us all with an opportunity to reflect on the important part we all play in creating and maintaining a system hostile to those wishing to exploit it for criminal or terrorist gain.
Thank you all again for supporting us and for supporting the AML/CFT system for all New Zealanders.
Ngā mihi,
Mike Stone
Director AML Group, Regulatory Services
Enhanced CDD Webinar
Enhanced CDD is required or used where there are factors creating a higher level of money laundering and terrorism financing risk, or when specified in the AML/CFT Act. There are many types of enhanced CDD, which means that in different situations, reporting entities are required to use different added measures to mitigate the money laundering and terrorism financing risk.
We have created a webinar to help businesses understand the enhanced CDD obligations, and what information must be collected.
Updated Enhanced CCD guideline
The AML/CFT Supervisors have also updated the enhanced CDD guideline. This clarifies when source of wealth or source of funds identification and verification must be carried out, as well as some other small wording changes. All the changes are listed in the version history at the end of the guideline.
DNFBPs – Help us improve your guidance
We are currently undertaking a review of some sector specific guidance. Specifically, these guidelines:
We want to hear from you to ensure the guidance we publish is still helpful and fit-for-purpose. We want your feedback on how you use these guidelines, what works well, what does not, and where you think we could make improvements.
Have your say and be heard.
Help us reach you - update your details
As your supervisor, it is important that we know how to contact you, so we need your updated contact details.
Click here to find out the easiest way to keep your details up to date.
What you may have missed
Email: AMLCFT@dia.govt.nz
