26.11.2021

Review of Anti-Money Laundering law is underway

The Ministry of Justice is carrying out a statutory review of the Anti-Money Laundering and Countering Financing of Terrorism Act 2013 (Act) to consider:

  • how it has performed since it was introduced in 2013;
  • and what should change.

The Ministry aims to complete this review by the end of June 2022 and provide a report to the Minister.

A Summary Document has been released by the Ministry for feedback. The scope of the statutory review of the Act and its impact on Anti-Money Laundering and Countering Finance of Terrorism (AML/CFT) is broad and far-reaching, with the key areas of focus including:

  • Institutional arrangements and stewardship: The Ministry will review the foundations of the Act, including what it aims to achieve, its risk-based approach to preparing regulations and the structure of the regime.  It will also consider if the right agencies and people are involved and whether they have been given the powers they need to carry out their work.
  • Scope of the Act: This involves a review of who should have AML/CFT obligations, including clarifying when international businesses have obligations under the Act.
  • Supervision, regulation, and enforcement: The Ministry will look at how businesses are currently supervised to ensure that they comply with their AML/CFT obligations.  It will see if the offences and penalties in the Act are still appropriate.  In particular, the Ministry would like to explore whether penalties are appropriate for employees, senior managers and the directors of businesses to ensure that people who actually make the decisions in a business can be held responsible.
  • Preventive measures: This section of the review will look at whether the steps the Act currently requires businesses to take (e.g. customer due diligence checks) effectively protect businesses from harm associated with money laundering and financing terrorism.
  • Other issues or topics and minor changes: The Ministry will consider other matters such as the use of technology, including digital identity services, the privacy and protection of information and how to harmonise New Zealand’s AML/CFT regime with Australia’s. 

Underpinning the above, the Ministry recognises that while anti-money laundering laws are important, they may sometimes make things overly challenging for both people and businesses.  This signals that the Ministry’s review will seek to balance a comprehensive and robust AML/CFT regime against identified risk while allowing people and businesses to operate without disproportionately onerous compliance obligations.

Public consultation closes on 3 December 2021 (via online survey or email submission). There will be further targeted consultation with the private sector and communities from February 2022 to April 2022, with the review finishing by 30 June 2022.

If you have any questions about the Act, this review or you would like to make a submission during the consultation period, please get in touch with our Business Advice Team or your usual contact at Hesketh Henry.

 

Disclaimer:  The information contained in this article is current at the date of publishing and is of a general nature.  It should be used as a guide only and not as a substitute for obtaining legal advice.  Specific legal advice should be sought where required.

 

 

Do you need expert legal advice?
Contact the expert team at Hesketh Henry.
Kerry
Media contact - Kerry Browne
Please contact Kerry with any media enquiries and with any questions related to marketing or sponsorships on +64 9 375 8747 or via email.

Related Articles / Insights & Opinion

Force Majeure – Not A Get Out Of Jail Free Card
Woolworths Group Ltd v Twentieth Super Pace Nominees Pty Ltd [2021] NSWSC 344
17.06.2022 Posted in Trade and Transport
Payment Claims: Incorrect Due Date From Delayed Delivery
Nicholls Group Projects Ltd v Plan Design Build Homes Ltd
20.05.2022 Posted in Construction
Employment Court Deems Gloriavale Residents Employees
The definition of “employee” in the Employment Relations Act 2000 (ERA) can at times be tricky to navigate; recent cases involving builders, couriers, and uber drivers can attest to the issues tha...
18.05.2022 Posted in Employment
New proposals on modern slavery place higher responsibilities on NZ organisations
Over recent years, modern slavery has become a more prominent issue in New Zealand.
13.05.2022 Posted in Business Advice
Insurance Contracts Bill – submissions on exposure draft closing soon
As we reported in late February, the Ministry of Business, Innovation and Employment (MBIE) is seeking submissions on the exposure draft Insurance Contracts Bill.  Submissions close on 4 May 2022. MB...
20.04.2022 Posted in Insurance
Matariki and Fair Pay Agreements
Matariki Te Pire mō te Hararei Tūmatanui o te Kāhui o Matariki (Te Kāhui o Matariki Public Holiday Bill) received Royal Assent yesterday, and the new Act comes into force today – 12 April 20...
12.04.2022 Posted in Employment
A Landmark Change? – Proposed reform of the occupational regulation of engineers
Engineers engage in building work that is critical to public safety. Despite this, few restrictions are placed on who can carry out and supervise complex and specialised projects that require high levels of professional judgement, skill and technical competence.
07.04.2022 Posted in Construction
Send us an enquiry
For expert legal advice, please complete the form below or call us on (09) 375 8700.
  • This field is for validation purposes and should be left unchanged.
-->