New Zealand Legislation: Bills
Bills are proposed Acts
In this Act, unless the context otherwise requires,—
AML/CFT means anti-money laundering and countering the financing of terrorism
AML/CFT programme means a compliance programme established under section 53(1)
AML/CFT requirements means the requirements set out in Part 2
AML/CFT supervisor, in relation to a reporting entity, means the person referred to in section 127(1) that is responsible for supervising the reporting entity under Parts 3 and 4
applicable threshold value means the threshold value that—
(a) is prescribed in regulations; and
(b) applies to a particular person, class of persons, transaction, class of transactions, financial activity, or class of financial activities prescribed in regulations
bearer-negotiable instrument means—
(a) a bill of exchange; or
(b) a cheque; or
(c) a promissory note; or
(d) a bearer bond; or
(e) a traveller’s cheque; or
(f) a money order, postal order, or similar order; or
(g) any other instrument prescribed by regulations
beneficial owner means the individual who—
(a) has effective control of a customer or person on whose behalf a transaction is conducted; or
(b) owns a prescribed threshold of the customer or person on whose behalf a transaction is conducted
beneficiary institution, in relation to a wire transfer from an ordering institution, means any person who receives those funds and then makes those funds available to a person (the payee) by—
(a) crediting it to an account held by the payee; or
(b) paying it to the payee
business relationship means a business, professional, or commercial relationship between a reporting entity and a customer that has an element of duration or that is expected by the reporting entity, at the time when contact is established, to have an element of duration
cash means—
(a) physical currency:
(b) bearer-negotiable instruments
cash report means a report made under subpart 6 of Part 2
casino means the holder of a casino operator’s licence under the Gambling Act 2003
chief executive means the chief executive of the Ministry
civil liability act has the meaning set out in section 76
code of practice and proposed code of practice have the meanings set out in section 59
Commissioner means the Commissioner of Police
constable has the same meaning as in section 4 of the Policing Act 2008
correspondent banking relationship has the meaning set out in section 26(3)
country includes any State, territory, province, or other part of a country
customer—
(a) means a new customer or an existing customer; and
(b) includes—
(i) a facility holder:
(ii) a person conducting or seeking to conduct an occasional transaction through a reporting entity:
(iii) a junket organiser as defined in section 4(1) of the Gambling Act 2003:
(iv) a person or class of persons declared by regulations to be a customer for the purposes of this Act; but
(c) excludes a person or class of persons that is declared by regulations not to be a customer for the purposes of this Act
Customs officer has the same meaning as in section 2(1) of the Customs and Excise Act 1996
designated business group means a group of 2 or more persons where—
(b) each member of the group has elected, in writing, to be a member of the group and the election is in force; and
(c) each election was made in accordance with regulations (if any); and
(d) no member of the group is a member of another designated business group; and
(e) each member of the group is—
(i) related to each other member of the group within the meaning of section 2(3) of the Companies Act 1993 and is—
(A) a reporting entity resident in New Zealand; or
(B) a person that is resident in another country with sufficient anti-money laundering and countering the financing of terrorism systems and is supervised or regulated for anti-money laundering and countering the financing of terrorism purposes; or
(ii) providing a service under a joint venture agreement, to which each member of the group is a party; or
(iii) a government department named in Schedule 1 of the State Sector Act 1988, a State enterprise under the State-Owned Enterprises Act 1986, or a Crown entity under section 7 of the Crown Entities Act 2004; or
(iv) related to 1 or more of the entities in subparagraph (iii) through the provision of common products or services; or
(v) an entity or class of entities prescribed by regulations to be a member of a designated entity; and
(f) each member of the group satisfies any conditions that may be prescribed by regulations and that apply to that member
domestic wire transfer has the meaning set out in section 24(7)
existing customer, in relation to a reporting entity, means a person who was in a business relationship with the reporting entity immediately before the commencement of Part 2
facility—
(a) means any account or arrangement—
(i) that is provided by a reporting entity; and
(ii) through which a facility holder may conduct 2 or more transactions; and
(b) without limiting paragraph (a), includes—
(i) a life insurance policy:
(ii) membership of a superannuation scheme:
(iii) the provision, by a reporting entity, of facilities for safe custody, including (without limitation) a safety deposit box:
(iv) an account or arrangement declared by regulations to be a facility for the purposes of this Act; but
(c) excludes an account or arrangement declared by regulations not to be a facility for the purposes of this Act
facility holder, in relation to a facility,—
(a) means the person in whose name the facility is established; or
(b) if that facility is a life insurance policy, means any person who for the time being is the legal holder of that policy; or
(c) if that facility consists of membership of a superannuation scheme, means any person who is a member of the scheme within the meaning of member in section 2(1) of the Superannuation Schemes Act 1989
financial institution—
(a) means a person who, in the ordinary course of business, carries on 1 or more of the following financial activities:
(i) accepting deposits or other repayable funds from the public:
(ii) lending to or for a customer, including consumer credit, mortgage credit, factoring (with or without recourse), and financing of commercial transactions (including forfeiting):
(iii) financial leasing (excluding financial leasing arrangements in relation to consumer products):
(iv) transferring money or value for, or on behalf of, a customer:
(v) issuing or managing the means of payment (for example, credit or debit cards, cheques, traveller’s cheques, money orders, bankers’ drafts, or electronic money):
(vi) undertaking financial guarantees and commitments:
(vii) trading for the person's own account or for the accounts of customers in any of the following:
(A) money market instruments (for example, cheques, bills, certificates of deposit, or derivatives):
(B) foreign exchange:
(C) exchange, interest rate, or index instruments:
(D) transferable securities:
(E) commodity futures trading:
(viii) participating in securities issues and the provision of financial services related to those issues:
(ix) managing individual or collective portfolios:
(x) safe keeping or administering of cash or liquid securities on behalf of other persons:
(xi) investing, administering, or managing funds or money on behalf of other persons:
(xii) underwriting or placement of life insurance or other investment related insurance:
(xiii) money or currency changing; and
(b) includes a person or class of persons declared by regulations to be a financial institution for the purposes of this Act; but
(c) excludes a person or class of persons declared by regulations not to be a financial institution for the purposes of this Act
financing of terrorism has the same meaning as in section 4(1) of the Terrorism Suppression Act 2002
gambling inspector has the same meaning as in section 4(1) of the Gambling Act 2003
government agency means—
(a) a government department named in Schedule 1 of the State Sector Act 1988; or
(b) a Crown entity under section 7 of the Crown Entities Act 2004; or
(c) the Reserve Bank, the Parliamentary Counsel Office, the New Zealand Police, and the New Zealand Security Intelligence Service; or
(d) any international counterpart of the entities in paragraphs (a) to (c)
identity information means information obtained under sections 13, 17, 21, and 24(1) and (2) and any other information relating to identity prescribed by sections 26(2)(g) and 27(b)
individual means a natural person, other than a deceased natural person
intermediary institution, in relation to a wire transfer, is a person that participates in a transfer of funds that takes place through more than 1 institution but is not an ordering institution or a beneficiary institution
law enforcement purposes means—
(a) the administration of this Act:
(b) the detection, investigation, and prosecution of—
(i) any offence under this Act; or
(ii) a money laundering offence; or
(iii) any offence under section 143B of the Tax Administration Act 1994; or
(iv) any serious offence (within the meaning of section 243(1) of the Crimes Act 1961)
(c) the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 2009:
(d) the enforcement of the Misuse of Drugs Act 1975:
(e) the enforcement of the Terrorism Suppression Act 2002:
(f) the administration of the Mutual Assistance in Criminal Matters Act 1992:
(g) the investigation of matters relating to security under the New Zealand Security Intelligence Service Act 1969:
(h) any action referred to in paragraphs (a) to (g) taken in respect of legislation of an overseas jurisdiction that is broadly equivalent to the enactments listed in those paragraphs
Minister means the Minister who is, with the authority of the Prime Minister, for the time being responsible for the administration of this Act
Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act
money laundering offence means an offence against section 243 of the Crimes Act 1961 or section 12B of the Misuse of Drugs Act 1975 or any act committed overseas that, if committed in New Zealand, would be an offence under those sections of those Acts
occasional transaction—
(a) means a cash transaction that occurs outside of a business relationship and is over the applicable threshold value (whether the transaction is carried out in a single operation or several operations that appear to be linked); and
(b) includes a transaction or class of transactions declared by regulations to be an occasional transaction for the purposes of this Act; but
(c) excludes—
(i) cheque deposits; and
(ii) a transaction or class of transactions declared by regulations not to be an occasional transaction for the purposes of this Act
ordering institution—
(a) means any person who has been instructed by a person (the payer) to electronically transfer funds controlled by the payer to a person (the payee) who may or may not be the payer on the basis that the transferred funds will be made available to the payee by a beneficiary institution; and
(b) includes a person declared by regulations to be an ordering institution for the purposes of this Act; but
(c) excludes a person or class of persons declared by regulations not to be an ordering institution for the purposes of this Act
physical currency means the coin and printed money (whether of New Zealand or of a foreign country) that—
(a) is designated as legal tender; and
(b) circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue
Police employee has the same meaning as in section 4 of the Policing Act 2008
politically exposed person means—
(a) an individual who holds, or has held at any time in the preceding 12 months, in any overseas country the prominent public function of—
(i) Head of State or head of a country or government; or
(ii) government minister or equivalent senior politician; or
(iii) Supreme Court Judge or equivalent senior Judge; or
(iv) governor of a central bank or any other position that has comparable influence to the Governor of the Reserve Bank of New Zealand; or
(v) senior foreign representative, ambassador, or high commissioner; or
(vi) high-ranking member of the armed forces; or
(vii) board chair, chief executive, or chief financial officer of, or any other position that has comparable influence in, any State enterprise; and
(b) an immediate family member of person referred to in paragraph (a), including—
(i) a spouse; or
(ii) a partner, being a person who is considered by the relevant national law as equivalent to a spouse; or
(iii) a child and a child's spouse or partner; or
(iv) a parent; and
(c) having regard to information that is public or readily available,—
(i) any individual who is known to have joint beneficial ownership of a legal entity or legal arrangement, or any other close relationship, with a person referred to in paragraph (a); or
(ii) any individual who has sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of a person described in paragraph (a)
registered bank has the same meaning as in section 2(1) of the Reserve Bank of New Zealand Act 1989
regulations means regulations made under this Act
reporting entity—
(a) means—
(i) a financial institution; and
(ii) a casino; and
(b) includes—
(i) a person or class of persons declared by regulations to be a reporting entity for the purposes of this Act; and
(ii) any other person that is required by any enactment to comply with this Act as if it were a reporting entity; but
(c) excludes a person or class of persons declared by regulations not to be a reporting entity for the purposes of this Act
security has the same meaning as in section 2(1) of the New Zealand Security Intelligence Service Act 1969
senior manager (and senior management correspondingly) means,—
(a) in relation to a reporting entity that is a company, a director within the meaning of section 126 of the Companies Act 1993; and
(b) in relation to a reporting entity that is not a company, a person who occupies a position comparable to that of a director (for example, a trustee or partner); and
(c) any other person who occupies a position within a reporting entity that allows that person to exercise an influence over the management or administration of the reporting entity (for example, a chief executive or a chief financial officer)
shell bank has the meaning set out in section 36(2)
suspicious property report has the same meaning as in section 4(1) of the Terrorism Suppression Act 2002
suspicious transaction report means a report made under section 37
transaction—
(a) means any deposit, withdrawal, exchange, or transfer of funds (in any denominated currency), whether—
(i) in cash; or
(ii) by cheque, payment order, or other instrument; or
(iii) by electronic or other non-physical means; and
(b) without limiting paragraph (a), includes—
(i) any payment made in satisfaction, in whole or in part, of any contractual or other legal obligation; and
(ii) a transaction or class of transactions declared by regulations to be a transaction for the purposes of this Act; but
(c) excludes the following:
(i) the placing of any bet:
(ii) participation in gambling as defined in section 4(1) of the Gambling Act 2003:
(iii) a transaction or class of transactions declared by regulations not to be a transaction for the purposes of this Act
trustee has the same meaning as in section 2(1) of the Trustee Act 1956
verification information means information obtained under sections 14, 18, 22, and 25
wire transfer—
(a) means a transaction carried out on behalf of a person (the originator) through a reporting entity by electronic means with a view to making an amount of money available to a beneficiary (who may also be the originator) at another financial institution; and
(b) includes a transfer or transaction, or class of transfers or transactions, declared by regulations to be a wire transfer for the purposes of this Act; but
(c) excludes—
(i) transfers and settlements between financial institutions if both the originator and the beneficiary are financial institutions acting on their own behalf; and
(ii) credit and debit card transactions if the credit or debit card number accompanies the transaction; and
(iii) any other transfer or transaction or class of transfers or transactions declared by regulations not to be a wire transfer for the purposes of this Act.
