Update on changes to AML/CFT Act regulations
01 June 2023
The Government has proposed changes to regulations under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act), following a Ministry of Justice-led review completed in June 2022. The Ministry of Justice consulted on draft regulations (PDF, 220KB) in February 2023: Consultation Document (PDF, 494KB).
As part of this work the Ministry of Justice sought feedback on these draft amendments, and you provided your insights and comments over March/April, which supported the drafting process.
Through the drafting process, it has become clear that six of the proposed changes need to be in primary legislation rather than in regulations. They have therefore come out of this package and will not be issued. Officials will be advising the Minister of Justice on the next available legislative vehicle to make these amendments to the Act. All other changes in the package are continuing to be progressed and are expected to proceed as planned.
The following are the 6 changes which will not be issued at this time:
|
Proposed Change |
# in exposure draft |
|---|---|
|
Define professional services in the DNFBP definition |
Page 10, new regulation 7B ‘Managing Client Funds’ |
|
Define engaging in or giving instructions in the DNFBP definition |
Page 11, new regulation 7C ‘Engaging in or giving instructions on behalf of customer to another person’ |
|
Page 11, new regulation 7C ‘Engaging in or giving instructions on behalf of customer to another person’ |
Page 11, new regulation 10A ‘Definition of occasional transaction’ |
|
Relaxing the address verification requirement under standard CDD |
Page 19, new regulation 24AJ ‘Exemption from address verification requirement’ |
|
Extension to SAR reporting for law firms |
Page 28, new regulation 34 ‘Extension of time for reporting suspicious activities: law firms’ |
|
Extension to PTR reporting |
Page 28, new regulation 35 ‘Extension of time for submitting prescribed transaction report in certain cases’ |
More information about the process and the work to date is available on the Ministry of Justice website. Available here Consultation on changes to AML/CFT Act regulations | New Zealand Ministry of Justice
