This page sets out some questions and answers for reporting entities and stakeholders to support changes planned for the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 and the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011. These changes come into force 9 July 2021.

Why are there going to be changes?

New Zealand’s anti-money laundering and countering financing of terrorism (AML/CFT) system is intended to adapt as money laundering and terrorism financing risks evolve. 

Two regulations, that are a key part of the AML/CFT system, are due to expire soon. These are the AML/CFT (Exemptions) Regulations 2011 which were scheduled to expire on 30 June 2020, and the AML/CFT (Definitions) Regulations 2011 which partially expire on 27 July 2021. 

In October 2019 the Ministry of Justice consulted on the AML/CFT Exemptions and AML/CFT Definitions Regulations. This was to identify whether each regulation is still required, and, if so, whether changes or updates are needed to be fit-for-purpose and reflect the current risk environment.  

Cabinet has agreed to make changes to the AML/CFT (Exemptions) Regulations 2011 and the AML/CFT (Definitions) Regulations 2011 and to issue six new regulations. 

What will change?

The changes include the removal of the expiry dates, adding some new regulations and amendments to other regulations.

When will the changes come into force?

The new regulations will come into force 9 July 2021.

My business has an issue that isn’t addressed by these changes. What can I do? 

The Ministry of Justice is leading a review of New Zealand’s anti-money laundering legislation.  This follows the Financial Action Task Force evaluation of New Zealand’s compliance with international anti-money laundering and countering financing of terrorism standards.  The review will commence in 2021 and there will be public consultation on this review which will provide a good opportunity for issues to be considered.

Who was consulted in the development of the proposed changes?

The Ministry of Justice consulted with some key stakeholders and professional representative bodies in the development of the proposed changes.  

How will I know whether I need to get audits every three or four years?

Once the regulations are in force, all AML/CFT audits will be required every three years. However, the AML/CFT supervisors are able to require a more frequent, or a less frequent, audit, depending on their assessment of a reporting entity’s money laundering and terrorism financing risk. 

The AML/CFT supervisors will notify you if you are required to have an audit more or less frequently than every three years. 

I’m due to get an audit after the regulations come into force. When is my audit due?

If you have an audit due after the regulations come into force, your next audit is due three years from the date of your last audit, or, if you haven’t yet had an audit, you next audit is due three years from the date you became a reporting entity.