Issue #21    October 2019

In this issue:

•    AML/CFT information for customers
•    Risk assessment training 
•    Annual AML/CFT Report
•    Compliance action taken
•    Changes in the AML Leadership team
•    AML newsfeed

AML/CFT information for customers and clients

Several businesses we supervise have told us they find it hard to explain to their customers why they must provide their identity documents or information about the source of their wealth. There is a general overview brochure available on the Ministry of Justice website that can be provided to your customers. There is also more detailed information on our website, including explanation of why a customer may be asked to provide proof of identification.

Risk assessment training

We’ve prepared a webinar on how to complete a risk assessment for your business.

Knowing your ML/TF risks is fundamental to meeting your obligations under the AML/CFT Act. The Department has created an online seminar to help businesses with their ML/FT risk assessments.

The webinar covers:

• What a ML/FT risk assessment is and why you need one;
• Tips for writing your risk assessment;
• What your risk assessment must cover; and
• Methodology for conducting a risk assessment.

We are currently working on a series of webinars for compliance officers which will dive deeper into some of the AML/CFT requirements. To make sure we are covering the topics you need help with most, we have created a survey. Please let us know what you would like us to focus on next.

Annual AML/CFT Report

Thank you to those businesses that have recently submitted their annual AML/CFT reports to us. For some sectors, this is the first time they have had to do so.

Your annual report is a key part of your requirements under the AML/CFT Act. It’s an opportunity for you to review the status of your risk assessment and AML/CFT compliance programme. 

DIA uses the information from annual reports to deepen our understanding of how businesses meet their AML/CFT obligations and assess and mitigate their ML/TF risks. It also helps us better understand the sectors we supervise. This is particularly important for our newly supervised sectors.

Our regulatory practice is risk-based and we use the information we get from annual reports to help target our desk-based reviews and onsite inspections.

We know how disruptive and harmful it can be to a business that is unwittingly taken advantage of by money launderers or those involved in financing terrorism. Complying with the AML/CFT Act will help reduce the chance of that happening. Keeping our money clean is also vital to protecting New Zealand’s reputation as a good place to do business.

Shared learnings from High Value Dealers with AML/CFT Act  

Since 1 August high value dealers who buy or sell goods using cash transactions at or over $10,000 have been covered by the AML/CFT Act. We spoke to two high value dealers in the motor vehicle sector about what they did to be regulation ready.  Read more here.

Compliance action taken

On 23 August 2019 we filed civil proceedings in the Auckland High Court against OTT Trading Group Limited, an Auckland-based money remitter, and MSI Group Limited, a Christchurch-based money remitter, under the AML/CFT Act. The Department seeks a civil pecuniary penalty against each of them.

The Department also seeks injunctions against three individuals associated with these two companies to prevent them from providing services regulated by New Zealand’s anti-money laundering legislation in the future.

This is the fourth civil proceeding to be filed since the AML/CFT Act took effect on 30 June 2013. 

The Department’s claim alleges that OTT Trading Group Limited and MSI Group Limited failed to meet their AML/CFT obligations as money remitters. The obligations the Department alleges they breached include those involving customer due diligence, account monitoring, record keeping and their AML/CFT programme. It is not alleged that OTT Trading Group Limited or MSI Group Limited were involved in money laundering or the financing of terrorism. You can read more about the civil proceeding here.

Changes in the AML Leadership team

We wanted to let you know about some changes that are happening in the AML leadership team. Andrew Holmes will be stepping up into the role of Deputy Director Operations for the next six months while our current Deputy Director Operations Trish Millward is seconded to the role of Principal Advisor AML.

AML newsfeed

Here are links to AML news you may have missed on our website: 

• New audit guidelines.
• Shared learnings from High Value Dealers getting on board with AML/CFT Act.
• Reminder for reporting entities relating to higher risk jurisdictions.
• Statement on the Kiwi Access Card.  

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.