AML/CFT Act: Early regulations package draft for public consultation
02 March 2023
Background
The Government proposes to make changes to regulations in the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act), following a Ministry of Justice-led review held between July 2021 and 30 June 2022.
The Ministry of Justice is now seeking feedback on these draft regulatory amendments, and you have until 14 April 2023 to have your say.
Proposed changes
In October 2022, Cabinet agreed to the Ministry’s proposal to implement the review’s immediate recommendations, which require issuing new or amending existing AML/CFT regulations.
This regulatory package seeks to give relief to businesses and respond to immediate issues identified by the statutory review. This includes regulations which respond to the following issues:
- Definitions and terminology that are out of date, unclear, or not fit-for-purpose.
- Obligations which are set to a standard of risk higher than actual risk, causing unnecessary costs to business.
- Gaps in regulations relating to known high-risk areas of cash, virtual assets, high-risk countries, and high-risk customers.
- Limited visibility of remittance networks and consequent limited levels of assurance.
- Areas of the FATF Standards where we currently fall short, such as availability of information relating to wire transfers.
- Inability to share information between agencies and the AML/CFT regime where information has been supplied or obtained under legislation not listed in section 140 of the AML/CFT Act.
Consultation: begins on 1 March 2023
This consultation seeks your input on how the Ministry has drafted the regulatory amendments, particularly whether the draft wording is clear enough and meets the regulations’ intended purpose, how it might be made clearer, and whether the changes might create any unintended consequences.
For more information and to find the consultation document and draft regulations, go the Ministry of Justice's website.
How to get in touch
You have till 5pm on 14 April 2023 to have your say.
Please email your feedback to aml@justice.govt.nz
or post a written submission to:
The AML/CFT Act consultation team
Ministry of Justice
DX Box SX 10088
Wellington, New Zealand.
