No images? Click here
Welcome to Compliance News
March 2022
In this issue:
- Updating contact details with The Department
- Operation Menelaus
- Complying with AML/CFT Verification during COVID-19
- FIU goAMLRegistration
- What you may have missed
Updating contact details with Te Tari Taiwhenua Internal Affairs
Reporting entities should ensure that Compliance Officer contact details are updated with the Department (e.g. when staff leave the organisation, goes on an extended period of leave etc).
To update these contact details, you can email AMLCFT@dia.govt.nz and provide the name, email and phone number of the new compliance officer.
Operation Menelaus
On 11th February 2022, Yinghui Zhang was sentenced to 12 months home detention for money laundering, providing unregistered financial services and structuring transactions to avoid AML/CFT requirements. The latter is an offence under section 101 of the AML/CFT Act.
This conviction was secured as part of New Zealand Police Operation Menelaus. This operation commenced in 2019 and was the first covert investigation of its kind in New Zealand to bring down a professional money-laundering operation. An estimated $8.4 million moved through a series of bank accounts in a little under two years. During the investigation, various assets were seized which included two homes, collectively worth $9 million, as well as numerous high-end cars and a significant portion of cash sitting in bank accounts.
The Department’s AML Group provided assistance to the Police at various stages of the investigation, including advice relating to the obligations of reporting entities under the AML/CFT Act.
“The Department’s aim is to maintain the integrity and stability of the financial system and in doing so, contribute to a safe, healthy and prosperous New Zealand with a strong international reputation,” said Paul Graham, (acting) Director for AML.
“From the Department’s perspective, the assistance provided to the Police to support their investigation reflects the AML Group’s strengthening relationship with a key sector partner,” says Andrew Holmes, Deputy Director of Operations for AML.
Complying with AML/CFT Verification during COVID-19
With the increasing number of COVID-19 cases throughout New Zealand, the Department reminds reporting entities of their obligations to comply with AML/CFT verification requirements.
Undertaking activities and transactions for current customers
The Department understands that, in the current situation, it may be more difficult for reporting entities to carry out ongoing CDD or enhanced CDD (if required) as per their usual face-to-face processes. Instead, reporting entities should apply a risk-based approach. This may mean, for example, that reporting entities accept scanned copies of documents as an interim measure, with the originals to be sighted at a reasonable later time.
New customers
Where a person’s identity cannot be verified face-to-face because it is not possible for them to attend in person, the AML/CFT Act includes delayed verification provisions. There also exception handling provisions under the Amended Identity Verification Code of Practice 2013. For further information please see the guidance: Complying with AML/CFT verification requirements during COVID-19 Alert Levels
Reporting entities must remain vigilant in this challenging environment, as criminals may try to target their products and services. The Department expects reporting entities to continue to effectively manage money laundering and financing of terrorism risks, and report suspicious activities where required to do so in accordance with the AML/CFT Act.
FIU goAML Registration
In conjunction with the New Zealand Police Financial Intelligence Unit (FIU), we have recently undertaken a review of registrations with goAML. GoAML is the FIU’s web-based reporting tool for submitting Prescribed Transaction Reports (PTRs) and Suspicious Activity Reports (SARs).
This review has identified that 37% of the reporting entities currently supervised by the Department are not registered with goAML.
Under the AML/CFT Act reporting entities are required to report all suspicious activities and prescribed transactions to the FIU via goAML.
High quality SARs and PTRs are vital to the work that the FIU does. The information contained in SARs is analysed to assist the New Zealand Police and other partner agencies with criminal investigations and national security measures. PTRs help build the intelligence picture, adding further transparency to the financial system by making certain ML/TF typologies even more difficult to hide.
If you are not registered for goAML, you must register here: New Zealand Financial Intelligence Unit (FIU) online reporting facility
For more information on your obligations to report suspicious activity and prescribed transaction please visit the New Zealand Financial Intelligence Unit website here: More Information and Guidance
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.
