Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Reprint as at 1 December 2014

Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Public Act2009 No 35
Date of assent16 October 2009
Commencementsee section 2

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Justice.


Contents

1 Title

2 Commencement

Part 1
Preliminary provisions

3 Purpose

4 Overview

5 Interpretation

6 Application of this Act to reporting entities

7 Amounts not in New Zealand currency

8 Act binds the Crown

Part 2
AML/CFT requirements and compliance

9 Non-compliance not excused by contractual obligations

Subpart 1Customer due diligence

10 Definitions

11 Customer due diligence

12 Reliance on risk assessment when establishing level of risk

13 Basis for verifying identity

Standard customer due diligence

14 Circumstances when standard customer due diligence applies

15 Standard customer due diligence: identity requirements

16 Standard customer due diligence: verification of identity requirements

17 Standard customer due diligence: other requirements

Simplified customer due diligence

18 Circumstances when simplified customer due diligence applies

19 Simplified customer due diligence: identity requirements

20 Simplified customer due diligence: verification of identity requirements

21 Simplified customer due diligence: other requirements

Enhanced customer due diligence

22 Circumstances when enhanced customer due diligence applies

23 Enhanced customer due diligence: identity requirements

24 Enhanced customer due diligence: verification of identity requirements

25 Enhanced customer due diligence: other requirements

26 Politically exposed person

27 Wire transfers: identity requirements

28 Wire transfers: verification of identity requirements

29 Correspondent banking relationships

30 New or developing technologies, or products, that might favour anonymity

Ongoing customer due diligence and account monitoring

31 Ongoing customer due diligence and account monitoring

Reliance on third parties

32 Reliance on member of designated business group

33 Reliance on other reporting entities or persons in another country

34 Reliance on agents

35 Use of information obtained from third party conducting customer due diligence

36 Protection of personal information and designated business groups

Prohibitions

37 Prohibitions if customer due diligence not conducted

38 Prohibition on false customer names and customer anonymity

39 Prohibition on establishing or continuing business relationship involving shell bank

Subpart 2Suspicious transaction reports

40 Reporting entities to report suspicious transactions

41 Nature of suspicious transaction report

42 Privileged communication defined

43 Auditors may report suspicious transactions

44 Protection of persons reporting suspicious transactions

45 Immunity from liability for disclosure of information relating to money laundering transactions

46 Disclosure of information relating to suspicious transaction reports

47 Disclosure of information in proceedings

48 Disclosure of personal information relating to employees or senior managers

Subpart 3Record keeping

49 Obligation to keep transaction records

50 Obligation to keep identity and verification records

51 Obligation to keep other records

52 How records to be kept

53 When records need not be kept

54 Destruction of records

55 Other laws not affected

Subpart 4Compliance with AML/CFT requirements

56 Reporting entity must have AML/CFT programme and AML/CFT compliance officer

57 Minimum requirements for AML/CFT programmes

58 Risk assessment

59 Review and audit of risk assessment and AML/CFT programme

60 Annual AML/CFT report

61 Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements

Subpart 5Codes of practice

62 Interpretation

63 AML/CFT supervisors to prepare codes of practice for relevant sectors

64 Procedure for approval and publication of codes of practice

65 Amendment and revocation of codes of practice

66 Proof of codes of practice

67 Legal effect of codes of practice

Subpart 6Cross-border transportation of cash

68 Reports about movement of cash into or out of New Zealand

69 Reports about receipt of cash from outside New Zealand

70 Reporting requirements

71 Information to be forwarded to Commissioner

Part 3
Enforcement

Subpart 1General provisions relating to Part

Proceedings for civil penalties

72 When and how civil penalty proceedings brought

Relationship between civil penalty and criminal proceedings

73 Relationship between concurrent civil penalty proceedings and criminal proceedings

74 One penalty only rule

75 Restriction on use of evidence given in civil penalty proceedings

Immunities

76 Protection for AML/CFT supervisors

77 Protection for reporting entities, officers, etc, acting in compliance with this Act

Subpart 2Civil liability

78 Meaning of civil liability act

79 Possible responses to civil liability act

Formal warnings

80 Formal warnings

Enforceable undertakings

81 Enforceable undertakings

82 Enforcement of undertakings

83 Assessment of compensation for breach of undertakings

Injunctions

84 Powers of High Court not affected

85 Performance injunctions

86 When High Court may grant performance injunctions

87 Restraining injunctions

88 When High Court may grant restraining injunctions and interim injunctions

89 Undertaking as to damages not required by AML/CFT supervisor

Pecuniary penalties

90 Pecuniary penalties for civil liability act

Subpart 3Offences

Offence and penalties relating to civil liability act

91 Offence and penalties for civil liability act

Offences relating to suspicious transaction reports

92 Failing to report suspicious transaction

93 Providing false or misleading information in connection with suspicious transaction report

94 Unlawful disclosure of suspicious transaction report

95 Failure to keep or retain adequate records relating to suspicious transaction

96 Obstruction of investigation relating to suspicious transaction report

97 Contravention of section 47(1)

98 Defence

99 Time limit for prosecution of offences relating to civil liability act and suspicious transaction reports

100 Penalties

Other offences relating to non-compliance with AML/CFT requirements

101 Structuring transaction to avoid application of AML/CFT requirements

102 Offence to obstruct AML/CFT supervisor

103 Offence to provide false or misleading information to AML/CFT supervisor

104 Time limit for prosecution of offences relating to non-compliance with AML/CFT requirements

105 Penalties

Offences relating to cross-border transportation of cash

106 Failure to report cash over applicable threshold value moved into or out of New Zealand

107 Failure to report cash over applicable threshold value received by person in New Zealand from overseas

108 Structuring cross-border transportation to avoid application of AML/CFT requirements

109 Defence

110 Providing false or misleading information in connection with cash report

111 Offence to obstruct or not to answer questions from Customs officer

112 Penalties

113 Chief executive of New Zealand Customs Service may deal with cash reporting offences

Relationship with Customs and Excise Act 1996

114 Relationship with Customs and Excise Act 1996

Computer searches by Customs officer

115 Duty of persons with knowledge of computer or computer network or other data storage devices to assist access to Customs officer

Subpart 4Search and seizure

116 Definitions

Search warrants

117 Search warrant

118 Powers under search warrant

Conduct of entry, search, and seizure

119 Assistance with searches [Repealed]

120 Enforcement officers to show identity card on request [Repealed]

121 Announcement before entry [Repealed]

122 Details of warrant to be given to occupier

123 Occupier entitled to be present during search

124 Use of electronic equipment

125 Copies of documents seized to be provided [Repealed]

126 Receipts for things seized [Repealed]

127 Application of sections 198A and 198B of Summary Proceedings Act 1957 [Repealed]

Return and retention of things seized

[Repealed]

128 Return and retention of things seized [Repealed]

129 Order to retain things seized [Repealed]

Part 4
Institutional arrangements and miscellaneous provisions

Subpart 1Institutional arrangements

AML/CFT supervisors

130 AML/CFT supervisors

131 Functions

132 Powers

133 Matters relating to conduct of on-site inspections

134 Delegation of supervisory function and powers

135 Authority to act as delegate

136 Effect of delegation

Use and disclosure of information

137 Power to use information obtained as AML/CFT supervisor in other capacity and vice versa

138 Restriction on power to use information under section 137

139 Power to disclose information supplied or obtained as AML/CFT supervisor

140 Power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes

141 Enforcement officers

Financial intelligence functions of Commissioner

142 Financial intelligence functions of Commissioner

143 Powers relating to financial intelligence functions of Commissioner

144 Delegation of powers of Commissioner

145 Guidelines relating to reporting of suspicious transactions

146 Consultation on proposed guidelines

147 Availability of guidelines

148 Review of guidelines

Co-ordination

149 Role of Ministry

150 AML/CFT co-ordination committee

151 Role of AML/CFT co-ordination committee

152 Functions

Subpart 2Miscellaneous provisions

Regulations

153 Regulations

154 Regulations relating to application of Act

155 Regulations relating to countermeasures

156 Consultation not required for consolidation of certain regulations and minor amendments

Ministerial exemptions

157 Minister may grant exemptions

158 Minister must consult before granting exemption

159 Requirements relating to exemptions

Transitional and savings provisions

160 Transitional and savings provisions

Consequential amendments, repeals, and revocation

161 Amendments to other enactments

162 Amendment to Financial Transactions Reporting Act 1996 consequential on bringing into force of Part 2

163 Amendment to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash

Schedule 1
Transitional and savings provisions

Schedule 2
Consequential amendments

Reprint notes


The Parliament of New Zealand enacts as follows: