Welcome to Compliance News June 2021

In this issue:

An update from the AML Group Director
Annual Reporting starting 1 July
Interim solution for corporate trustee annual report obligations extended
Changes to regulations coming into force
What you may have missed

Update from the AML Group Director

Kia ora koutou,

As mentioned in the previous issue of Compliance News, the New Zealand Mutual Evaluation Report has been published on the Financial Action Task Force website. We can proudly say that we were assessed as having established a comprehensive multi-tiered risk assessment process with strong domestic co-ordination and co-operation. As an AML/CFT supervisor, we were also assessed as having a good understanding of the inherent risk profiles of our sectors with the level of supervision for each sector broadly commensurate with the level of risk.

There were also recommendations where New Zealand could improve, including further development of New Zealand’s technical framework. The Ministry of Justice, New Zealand Police and the Department, as well as other AML/CFT agencies, are considering these recommendations as part of the Statutory Review of the AML/CFT Act, which will commence on 1 July 2021. While this process is in the early stages, the Department is working closely with the Ministry of Justice to ensure that the Minister of Justice has the appropriate information to seek agreement from Cabinet and move forward with the work. The Ministry of Justice has also started working with an industry advisory group that represents a cross-section of reporting entities, AML consultants and academics.

You should also be aware that you are able to file your AML/CFT annual report for 2021 from 1 July 2021. Annual reports are an important tool as they help the Department know you and your business better and be more responsive to risk. If you have any issues with completing or submitting your AML/CFT annual report, please get in touch with us at amlcft@dia.govt.nz.

On behalf of the entire AML Group, thank you for continuing to support us in our efforts to prevent criminals and terrorist financers from exploiting New Zealand businesses.

Ngā mihi, 

Mike Stone  
Director AML Group, Regulatory Services

Annual Reporting starts 1 July

Submitting an annual report to your supervisor is a legal requirement under the AML/CFT Act 2009.

From 1 July 2021, those who are required to submit an annual report will be able to do so through our portal AML Online.

Your annual report covers information about your business from the period of 1 July 2020 - 30 June 2021. We have created ‘before you start’ checklists for financial institutions and designated non-financial businesses and professions (lawyers, accountants and real estate agents), to help you prepare the information you need before starting your annual report.

The deadline for completing your annual report is 31 August 2021.

Interim solution for corporate trustee annual report obligations extended

While the Ministry of Justice continues to examine the issues regarding corporate trustees, the Department of Internal Affairs wants to provide reporting entities with the same certainty as the previous two years around their annual reporting obligations.

Therefore, we are extending the interim solution for corporate trustee annual report obligations for 2021.

Changes to regulations coming into force

In December 2020 we shared that Cabinet had agreed to make changes to the AML/CFT Regulations. These changes include the removal of the expiry dates, adding some new regulations, and amendments to other regulations. These will come into force on 9 July 2021.

Some of the key changes relate to the frequency of audits, the capture of disbursements and timing of customer due diligence for commercial leasing transactions.

What you may have missed

Barrister Sole Exemption Factsheet

We have published a new factsheet relating to the class exemption approved for barristers sole on 15 March 2021. This factsheet is designed to explain the background to the exemption, reasons behind its approval and the circumstances in which the exemption applies to barristers sole.

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.