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Terrorism Suppression Act: Key Provisions and Requirements

The Terrorism Suppression Act (TSA) is a critical piece of legislation aimed at preventing and combating terrorism in New Zealand. Under this act, the Prime Minister has the power to designate individuals or groups as terrorist entities, making it illegal for anyone to participate in or support their activities.

Designations under the TSA

There are two types of designations made under the TSA:

  • UN List: Entities designated by the United Nations (UN) under UNSC Resolutions 1267/1989 and the 1988 List. These designations engage the criminal provisions of the TSA.
  • New Zealand Designations: Designations made under UNSC Resolution 1373, which allows member states to identify entities against which they should take action. Designations under this resolution do not specifically identify the entities, leaving it to New Zealand and other countries to determine which groups to outlaw.

Consequences of Designation

Once an entity is designated as a terrorist organization:

  • It becomes illegal for anyone to participate in or support their activities.
  • This includes providing financial assistance, resources, or any form of support.
  • Designations also trigger strict reporting requirements under the Anti-Money Laundering and Countering the Financing of Terrorism Act (AML/CTF).

Reporting Requirements

Under AML/CTF:

  • Suspicious Transaction Reports (STRs): Reporting entities are required to submit STRs to the Financial Intelligence Unit (FIU) when they have reasonable grounds for suspicion that an transaction or activity is related to money laundering or terrorism financing.
  • Objective Test: The test for a SAR is objective, meaning that if an objective observer would conclude that there were reasonable grounds for suspicion, then a report must be submitted.

When to Report?

Once reasonable grounds for suspicion exist:

  • Reporting entities must submit a SAR to the FIU as soon as practicable, but no later than three working days.
  • In practice, this means that reporting entities will need to conduct enquiries to gather information to establish reasonable grounds for suspicion before submitting a report.

Conclusion

The Terrorism Suppression Act and its associated regulations aim to prevent and combat terrorism in New Zealand by designating terrorist organizations and requiring reporting entities to submit Suspicious Transaction Reports when they have reasonable grounds for suspicion. Understanding the requirements under AML/CTF is crucial for reporting entities to meet their obligations and help prevent terrorist financing.