Welcome to the June issue of Compliance News
Kia ora koutou,
I would like to start by acknowledging the unprecedented effects the COVID-19 pandemic has had on the country, and potentially your business. We all united to keep our communities safe and I’m confident that our unity will prevail to prevent the harm money laundering and terrorism financing can cause to New Zealanders.
In this newsletter, there’s a range of articles that we hope you find valuable. We have published an update on some regulation changes that the Ministry of Justice is progressing, an overview of the independent audit obligation, and some articles of interest about our regulatory findings including a new webinar.
On the matter of the independent audit obligation, while there are some changes pending, 2020 deadlines that impact many of the businesses we supervise must be met. Until new regulations come into force the current obligations remain.
From 1 July all businesses we supervise can commence the submission of their annual report via our AML Online portal. For most this will not be the first time you submit an annual report or use AML Online. To make it easier improvements have been made to AML Online portal since last year with more help available as you work through the questions and content of your submission.
If you are no longer providing captured activities, please contact us by email at amlcft@dia.govt.nz.
Ngā mihi,
Mike Stone
Director AML Group, Regulatory Services
Expiring regulations update
Two regulations that are a key part of the AML/CFT system are due to expire and Cabinet has agreed to make changes. Until new regulations come into force reporting entities must comply with the requirements of the current regulations.
It's almost time to file an annual report
Submitting an annual report to your supervisor is a legal requirement under the AML/CFT Act.
From 1 July you will be able to submit your annual report through our portal AML Online. The deadline for completion is 31 August 2020. If you haven’t accessed AML Online before you will need to have a verified RealMe account which may take time so please start now here.
Once you have the verified Real Me you will need to email us at amlcft@dia.govt.nz to be sent an access link to AML Online to submit your annual report. Since last year we have made some improvements and included more help text to the annual report form. We have also made it easier by providing ‘before you start’ checklists for financial institutions and DNFBPs. These are designed to help you pull together all the information required before you submit your annual report.
Independent audit obligation
The AML/CFT Act requires all reporting entities to complete an independent audit every two years. The audit obligation is a systemic check of a reporting entity’s AML/CFT programme and will assess whether the AML/CFT programme is functioning in practice and that the policies, procedures and controls in place are based on the money laundering and financing terrorism risks identified by that business.
Interim solution for corporate trustee annual report
The Ministry of Justice is preparing a consultation document asking the public for their views on a proposed draft class exemption for corporate trustees that are reporting entities under the AML/CFT Act, and which meet the requirements set out in the draft exemption. Once this document has been finalised, it will be published on the Ministry of Justice web page which you can access here.
While this is in progress the Department wants to provide reporting entities with the same certainty as last year around their annual reporting obligations. Therefore, we are extending the interim solution announced in 2019 for corporate trustee annual report obligations for 2020.
Regulatory findings webinar
In response to requests to share the outcomes of our compliance assessments, we have published a webinar based on our regulatory findings for the 12 months ended 30 June 2019.
This webinar expands on our recently published Regulatory Findings Report. It highlights the Department’s regulatory findings and brings these findings to life with examples of good practice and unsatisfactory practice we have observed from our compliance assessments.
Judgment in civil proceeding against individuals
In November last year, the Department filed a civil proceeding in the Auckland High Court seeking injunctions against three individuals associated with Auckland based money remitter OTT Trading Company (OTT) and a Christchurch based money remitter, MSI Group Limited (MSI).
The proceedings filed resulted in a judgment restraining the three individuals associated with these two companies from acting as a compliance officer of any reporting entity, and two of the individuals from acting as senior managers of any reporting entity or engaging in any business activity that would make them a reporting entity under the AML/CFT Act.
Accountant sector regulatory findings
Earlier this year we released a Regulatory Findings Report for the twelve months ending 30 June 2019.
We have received requests from businesses for specific sector feedback and are progressing the development of articles to meet these requests. We have published an article on findings for the accountancy sector and are working to publish more sector-specific regulatory findings.
We encourage everyone to refer to our website dia.govt.nz/amlcft regularly for updates on our guidance, information and advice.
The team are ready to assist either by phone - 0800 25 78 87 - or email the team on AMLCFT@dia.govt.nz.