Who Are Reporting Entities and Sector Supervisors?

The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) came into force on 30 June 2013.

The Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 introduced new obligations and extends the coverage of previous legislation.  The amendment act also increases the number of reporting entities and report types that need to be sent to the New Zealand Financial Intelligence Unit (FIU).

The FIU receives information from reporting entities (financial institutions and certain professions) in the form of:

  • Suspicious Activity Reports (SAR) (from 1 July 2018)
  • Suspicious Transaction Reports (STR)
  • Prescribed Transactions Reports (PTR)
  • Suspicious Property Reports (SPR)
  • Border Cash Reports (BCR)

Information is also received from domestic and international partner agencies.

Reporting entities

Reporting Entities are businesses supervised under Section 5 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

Reporting entities need to be familiar with the obligations imposed by the AML/CFT Act.  These obligations include:

  • undertaking Suspicious Transaction Reporting
  • undertaking Prescribed Transactions Reporting
  • undertaking Suspicious Activity Reporting (from 1 July 2018)
  • carrying out an assessment of the money laundering and terrorism financing risk they 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.

Reporting entities need to confirm their reporting obligations with their Sector Supervisors in the first instance.

All relevant acts and regulations are available from the New Zealand Legislation website.

Sector Supervisors

Businesses that are required to comply with the AML/CFT Act are supervised by an appropriate organisation.

There are three agencies that currently supervise and monitor reporting entities.  These are referred to as Sector Supervisors and are as follows.

  1. Reserve Bank of New Zealand (RBNZ)
    Supervises banks, life insurers, and non-bank deposit takers.
  2. Financial Markets Authority (FMA)
    Supervises issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, and financial advisers.
  3. Department of Internal Affairs (DIA)
    Supervises casinos, non-deposit taking lenders, money changers, lawyers, conveyancers and any other financial institutions not supervised by the Reserve Bank or the Financial Markets Authority.

    The AML/CFT Amendment Act 2017 introduces a supervision regime for lawyers, conveyancers, accountants, real estate agents, sports and race betting, and businesses that deal in certain high value goods. Refer to The Department of Internal Affairs website for further information and compliance dates.

Reporting entities should contact their sector supervisor to confirm their reporting obligations using the links above (before contacting the FIU).