Anti-Money Laundering and Countering Financing of Terrorism Act 2009

4 Overview

(1)

This section is a guide to the general scheme and effect of this Act, but does not affect the interpretation or application of the other provisions of the Act.

(2)

Part 1 deals with preliminary matters such as definitions of terms used in the Act. It sets out the purpose of the Act and the extent to which it applies to reporting entities.

(3)

Part 2 deals with AML/CFT requirements and compliance and has 7 subparts, as follows:

(a)

subpart 1 includes provisions dealing with requirements on reporting entities to conduct due diligence on customers and certain other persons, the ability of reporting entities to rely on third parties to carry out customer due diligence and other AML/CFT functions, and prohibitions on establishing or continuing business relationships and setting up facilities in certain circumstances:

(b)

subpart 2 includes provisions dealing with requirements on reporting entities to report suspicious activities and protection of persons making suspicious activity reports:

(ba)

subpart 2A sets out requirements on reporting entities to report certain prescribed transactions:

(c)

subpart 3 sets out requirements on reporting entities to keep records and includes provisions concerning the storage and destruction of records:

(d)

subpart 4 deals with reporting entities’ internal policies and procedures relating to the prevention of money laundering and the financing of terrorism, including provisions setting out requirements for reporting entities to have an AML/CFT programme for detecting and managing the risk of money laundering and the financing of terrorism, to carry out a risk assessment before conducting customer due diligence or establishing an AML/CFT programme, and to review, audit, and report on their risk assessment and AML/CFT programmes:

(e)

subpart 5 deals with codes of practice and includes provisions relating to the preparation of codes by AML/CFT supervisors, approval of codes of practice, and their legal effect:

(f)

subpart 6 contains provisions relating to the reporting of certain movements of cash into and out of New Zealand.

(4)

Part 3 deals with enforcement and contains provisions relating to civil liability acts, offences, search and seizure, penalties, and immunity of certain persons from civil and criminal proceedings.

(5)

Part 4 deals with institutional arrangements and miscellaneous matters and has 2 subparts, as follows:

(a)

subpart 1 includes provisions that identify the AML/CFT supervisors and their functions, powers, and ability to delegate supervisory functions; the financial intelligence functions of the Commissioner of Police and a requirement on that person to issue guidelines relating to the reporting of suspicious activities and prescribed transactions; the roles and responsibilities of the Ministry, the AML/CFT co-ordination committee required to be established by the chief executive of the Ministry, and other agencies concerning monitoring, evaluating, and advising on the operation of the AML/CFT regulatory system:

(b)

subpart 2 includes regulation-making powers and provisions relating to the Minister’s power to grant exemptions from the requirements of the Act.

Section 4(3): amended, on 1 July 2017, by section 4(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2015 (2015 No 96).

Section 4(3)(b): replaced, on 11 August 2017, by section 4(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Section 4(3)(ba): inserted, on 1 July 2017, by section 4(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2015 (2015 No 96).

Section 4(5)(a): amended, on 11 August 2017, by section 4(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).