Reporting entities and sector supervisors

The Anti-Money Laundering and Countering the Financing of Terrorism Act 2009 (AML/CFT Act) came fully into force on 30 June 2013. The Act places new obligations and extends the coverage of previous legislation and greatly increase the number of reports sent to the Police Financial Intelligence Unit (FIU).

The FIU receives information from:

  • reporting entities (mainly banks, financial institutions and casinos) in the form of Suspicious Transaction Reports and Suspicious Property Reports
  • Prescribed Transactions Reports (from 1 November 2017)
  • Border Cash Reports
  • domestic and international partner agencies

The information provided is collected and analysed within the FIU's database and used for a wide variety of investigations.

Suspicious Transaction Reports are important indicators and warnings and, contribute to the creation of FIU intelligence products and profiles.

As well as the current Suspicious Transaction Reports, Prescribed Transactions Reports will add further transparency to the financial system by making certain money laundering and terrorist financing typologies even more difficult to hide, as well as improve the detection and thus disruption of organised crime, fraud and tax evasion.

Reporting entities

As a reporting entity you should be familiar with the obligations imposed by the AML/CFT Act, so you can comply with its requirements. These obligations include:

  • undertaking Suspicious Transaction Reporting
  • undertaking Prescribed Transactions Reporting (from 1 November 2017)
  • carrying out an assessment of the money laundering and terrorism financing risk a reporting entity may reasonably expect to face
  • establishing, implementing and maintaining an AML/CFT compliance programme that includes internal procedures, policies and controls that will detect, manage and mitigate this risk
  • carrying out customer due diligence (CDD), which includes customer identification and verification and ongoing CDD
  • robust record keeping.

The Parliamentary Counsel Office website contains a copy of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) Act 2009.

In addition to the AML/CFT Act reporting entities also need to understand the:

The AML/CFT Act, PTR Regulations and exemptions are on the New Zealand Legislation website.

These regulations come into force on 1 November 2017.    For further information refer to the Prescribed Transactions Reporting web page.

Sector supervisors

Three organisations monitor and supervise the reporting entities within their sector. These are:

  • the Reserve Bank of New Zealand - supervises banks, life insurers, and non-bank deposit takers
    AML information at the Reserve Bank of New Zealand
  • the Financial Markets Authority - supervises issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, and financial advisers
    AML information at the Financial Markets Authority
  • the Department of Internal Affairs - supervises casinos, non-deposit taking lenders, money changers, and any other financial institutions not supervised by the Reserve Bank or the Financial Markets Authority.
    AML information at the Department of Internal Affairs.