When is Additional Due Diligence Required for Non-Face-to-Face Transactions and Relationships?
In New Zealand, additional due diligence is required for non-face-to-face transactions and relationships under the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act). The Financial Intelligence Unit (FIU) oversees compliance with AML/CFT requirements.
To Whom are Suspicious Activity Reports Made?
Suspicious activity reports (SARs) are made to the New Zealand Police’s Financial Intelligence Unit (FIU).
New Legislation: Mandatory Reporting of Wire Transfers over NZD1000
The Government has introduced new legislation requiring the mandatory reporting of wire transfers over NZD1000 (approximately USD654). This law is expected to come into force in 2017.
Penalties for Non-Compliance
Failure to comply with AML/CFT requirements can result in severe penalties, including fines and imprisonment. Individuals and entities found guilty of non-compliance may be subject to criminal prosecution.
Risk-Based Approach
The AML/CFT Act requires a risk-based approach to identifying and mitigating money laundering and terrorism financing risks.
Verification of Identification Documents
Individuals must provide identification documents that are certified as true copies by a trusted referee. The documents must include the individual’s name, date of birth, and photographic identification.
Case Law Impacting Transfer of Information
Specialist advice is recommended to ensure compliance with New Zealand laws and regulations when transferring information to this jurisdiction. There are no specific bank secrecy laws in New Zealand.
Summary of AML/CFT Requirements
New Zealand’s AML/CFT requirements are designed to prevent money laundering and terrorism financing by requiring financial institutions and other reporting entities to identify and verify customer identities, monitor transactions for suspicious activity, and report suspicious transactions to the FIU. Effective implementation of these requirements is critical to preventing criminal activities in New Zealand.
Additional Resources
For more information on AML/CFT requirements in New Zealand, please refer to the following resources:
- Anti-Money Laundering and Countering Financing of Terrorism Act 2009
- Financial Intelligence Unit (FIU)
- Department of Internal Affairs
- Code of Practice for Identification Documents
Please note that this article is a summary of the AML/CFT requirements in New Zealand and should not be considered as legal advice. Specialist advice should be sought if you are required to comply with these requirements.