Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017

  • Corrections have been made to Schedule 1 on 14 August 2017 under section 25(1)(j)(iii) of the Legislation Act 2012.
29 Section 59 replaced (Review and audit of risk assessment and AML/CFT programme)

Replace section 59 with:

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

(1)

A reporting entity (other than a high-value dealer) must review its risk assessment and AML/CFT programme to—

(a)

ensure that the risk assessment and AML/CFT programme are up to date; and

(b)

identify any deficiencies in the effectiveness of the risk assessment and the AML/CFT programme; and

(c)

make any changes to the risk assessment or AML/CFT programme identified as being necessary under paragraph (b).

(2)

A reporting entity (other than a high-value dealer) must ensure that its risk assessment and AML/CFT programme are audited every 2 years or during a different time period prescribed by regulations, or at any other time at the request of the relevant AML/CFT supervisor.

59A Audit of compliance with AML/CFT obligations

A high-value dealer must ensure that its compliance with its AML/CFT obligations under section 6(4)(d)(ii), and any regulations, is audited when the relevant AML/CFT supervisor requests.

59B Who carries out audit

(1)

An audit under section 59 or 59A must be carried out by an independent person, appointed by the reporting entity, who is appropriately qualified to conduct the audit.

(2)

A person appointed to conduct an audit is not required to be—

(a)

a chartered accountant within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996; or

(b)

qualified to undertake financial audits.

(3)

A person appointed to conduct an audit must not have been involved in—

(a)

the establishment, implementation, or maintenance of the reporting entity’s AML/CFT programme (if any); or

(b)

the undertaking of the reporting entity’s risk assessment (if any).

(4)

The audit of a risk assessment under section 59 is limited to an audit of whether the reporting entity’s risk assessment fulfils the requirements in section 58(3).

(5)

A reporting entity must provide a copy of any audit to its AML/CFT supervisor on request.