Services › Anti-Money Laundering › AML/CFT News - August 2012

In this issue:

• Countdown to commencement
• Roadshow 2012
• Countries Assessment Guideline
• Ministry of Justice - consultation on regulations
• Designated Business Group Guideline
• Introducing the RealMe service
• Supervisors' work programme - milestones
• Contact us

Countdown to commencement

The AML/CFT Act comes into full force on 30 June 2013.

Reporting entities now have less than one year to prepare.

If you are a reporting entity under the Act, you need to prepare your risk assessment and AML/CFT programme now so that you have the required processes and procedures in place.

The supervisors have already issued a number of guidelines to help you get ready, and will provide further guidance and information closer to 30 June 2013.

The March issue of AML/CFT News includes information to help you get started with AML/CFT compliance.

Roadshow 2012

In May and June, representatives from Internal Affairs, the Financial Markets Authority and the Police Financial Intelligence Unit presented the second round of the AML/CFT Roadshow.

The 2012 Roadshow was presented in two parts, with a total of 24 presentations in 10 locations. Part One introduced the AML/CFT Act and covered the material that was presented last year. Part Two gave more detail on selected topics about compliance with the AML/CFT Act.

Both presentations, including speaker notes, are available on the Internal Affairs and Financial Markets Authority websites. A summary of the frequently asked questions and answers will soon be available.

The Roadshow was another good opportunity for reporting entities to seek guidance from the AML/CFT supervisors and Police Financial Intelligence Unit.

Feedback Questionnaire

If you attended the 2012 Roadshow, please tell us what you thought by completing a brief online questionnaire. Your feedback will help us to plan future seminars and roadshows.

Countries Assessment Guideline

Under the AML/CFT Act and Regulations, you may need to assess aspects of another country’s regulatory environment.

The Countries Assessment Guideline is designed to help you decide when you need to undertake this assessment, and how to go about it. It includes links to useful resources and websites.

Reporting entities should consider the countries that they regularly do business with, and incorporate them into their AML/CFT procedures and processes.

We recommend that reporting entities incorporate  countries assessment when setting up and reviewing their AML/CFT risk assessment and AML/CFT programme.

Ministry of Justice - consultation on regulations

The Ministry of Justice is consulting on proposals for a final set of administrative and minor regulations under the AML/CFT Act.

Proposals include:

• Administrative matters: an annual reporting form and information to be contained in suspicious transaction reports
• Technical amendments: in response to feedback on the AML/CFT Regulations promulgated in June 2011
• Final policy matters: certain exemptions, and some other minor policy proposals.

The consultation document is available on the Ministry of Justice website.

Submissions should be made to the Ministry of Justice by Friday 17 August.

Designated Business Group Guideline

Under the AML/CFT Act, there is provision for reporting entities to become part of a Designated Business Group (DBG) with shared AML/CFT programmes.

AML/CFT supervisors have published DBG guidance online in two parts:

1. The DBG - Scope Guideline outlines AML/CFT obligations that may be shared by members of a DBG.
2. The DBG - Formation Guideline outlines the eligibility criteria, the election process and how to notify your supervisor that you intend to form a DBG.

Introducing the RealMe service

Our last newsletter included information about the Electronic Identity Verification Bill. This Bill widens the eligibility for the igovt identity  verification service and puts in place protections and principles for its use.

Since then, Internal Affairs and New Zealand Post have launched a new brand, RealMe.

RealMe will allow people to access services online and to prove information about themselves to participating organisations. Initially, this will be verified identity and address information, which can assist with AML/CFT customer due diligence requirements.

The igovt logon service will become part of RealMe service (with RealMe branding), but the igovt identity verification service will continue to be branded as igovt.

Customers will have their identity information verified by igovt and their address verified by New Zealand Post. Conditions and costs of using the service are yet to be determined.

RealMe is currently under development and scheduled for launch in March/April 2013.

For more information, visit www.realme.govt.nz or email realme@nzpost.co.nz

Supervisors’ work programme - milestones

Many reporting entities have asked what supervisors are working on and when future guidelines can be expected. The following are the approximate milestones that supervisors are working towards:

Issuers of securities	by end 2012
Beneficial ownership	by end 2012
Audit	by end 2012
Other guidelines (including sector specific)	as required
Annual report form (via regulations)	estimated January 2013
AML/CFT Act 2009 in full force	30 June 2013

Contact us

Internal Affairs is your supervisor if you are a casino, money service business, payroll remittance business, non-deposit taking lender, financial leasor, safe deposit/cash storage provider, non-bank credit card provider, trust and company service provider or any other financial institution not supervised by the Reserve Bank or Financial Markets Authority.

Please email amlcft@dia.govt.nz if you have any questions.

The Financial Markets Authority is your supervisor if you are an issuer of securities, broker, financial adviser, trustee company, collective investment scheme or futures dealer.

Please email aml@fma.govt.nz if you have any questions.