High Value Dealers doing their bit to prevent money laundering

Every year about $1.35 billion is laundered through New Zealand businesses to disguise the illegal origins of money from crimes such as drug dealing, fraud, tax evasion or theft. Criminals often target high value dealers to turn illicit cash into assets.

To combat this the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) has expanded to cover high value dealers from today. High value dealers will have fewer obligations under the AML/CFT Act than other businesses that we supervise.

Dealers of high value goods that might be affected include bullion dealers; jewellers, precious metal and stone dealers, motor vehicle and ship or boat dealers, antique and art dealers, and other businesses that accept or provide large amounts of cash for certain types of goods.

The AML/CFT Act applies to high value dealers who buy or sell goods using cash transactions at or over $10,000. The cash threshold applies to a single transaction or a series of related transactions that add up to $10,000 or more. If a high value dealer only conducts electronic transactions, then they are not captured by the AML/CFT Act.

Cash includes NZD and foreign currency as well as any type of cheque (bank, personal, travellers), promissory notes, bills of exchange, bearer bonds, money orders, postal order or similar orders.

High value dealers that deal in cash transactions of $10,000 or over will need to verify customers’ identities. Records of the customer’s identity and the verification documents must be kept. They will need to submit transaction reports to the NZ Police Financial Intelligence Unit (FIU) and have an audit of their business conducted if requested by DIA. High value dealers may report activity or transactions that appear suspicious to the FIU.

DIA is the AML/CFT supervisor for dealers of high value goods and has been working alongside HVD peak bodies to inform their members about their AML/CFT obligations.

More information and guidance for high value dealers is available on the DIA website.


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