N.Zealand Consultation paper on anti-money laundering

Justice Minister Simon Power has released a consultation paper on proposed regulations to prevent money laundering and the financing of terrorism.

The proposals and codes of practice for financial institutions and casinos are integral to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

It was always intended that obligations for those institutions would be brought into force after the legislation was passed to allow regulations to be developed.

The consultation document seeks public feedback on the content of the regulations, and proposes that obligations in the Act come into force two years after regulations are published to give the industry time to prepare for the new system.

“This Act is an essential component of New Zealand’s fight against organised crime, allowing the enforcement authorities to follow the money trail through financial systems, and enabling Police to use the Criminal Proceeds (Recovery) Act to attack those profits,” Mr Power said.

“It engages the help of financial institutions and casinos to detect and deter money laundering and terrorist financing.

"Officials and the industry have worked together to develop regulations which strike the right balance between giving effect to the law and minimising red tape.”

Mr Power also confirmed arrangements are in place to help financial institutions if they feel they have been caught up unintentionally in the reforms as a result of the definition of financial institution being broadly defined.

“Some of those situations will be dealt with in regulations, and some I will consider on a case-by-case basis through a ministerial exemption process.”

The Ministry of Justice has published the exemptions policy, which sets out the process for making an application for exemption under the Act.

“The regime will affect a wide range of businesses and it’s important that all financial sector organisations take time to consider whether the Act will affect them.”

Information on the exemption process and the regulatory consultation document are available on the Ministry of Justice website.

Submissions on the consultation document close on 6 September.

Source: Scoop