Financial Transactions Reporting (Interpretation) Regulations 2008

2008/309

Crest

Financial Transactions Reporting (Interpretation) Regulations 2008

Rt Hon Dame Sian Elias, Administrator of the Government

Order in Council

At Wellington this 15th day of September 2008

Present:
Her Excellency the Administrator of the Government in Council

Pursuant to section 56(1)(e) of the Financial Transactions Reporting Act 1996, Her Excellency the Administrator of the Government, acting on the advice and with the consent of the Executive Council, and on the recommendation of the Minister of Justice, makes the following regulations.

Regulations

1 Title

  • These regulations are the Financial Transactions Reporting (Interpretation) Regulations 2008.

2 Commencement

  • These regulations come into force on the day after the date of their notification in the Gazette.

3 Interpretation

  • In these regulations, unless the context otherwise requires,—

    prescribed amount means the prescribed amount referred to in paragraph (a) of the definition of prescribed amount in section 2(1) of the Act

    remittance card facility means a facility that—

    • (a) has as its principal purpose the withdrawal of cash from an automatic teller machine outside New Zealand or the transfer of value or withdrawal of cash at a point of sale outside New Zealand; and

    • (b) is accessed by means of a portable device in the form of a card that can operate on an international automatic teller machine and electronic funds transfer at point of sale network.

4 Remittance card facility deemed not to be facility if certain conditions met

  • For the purposes of section 6 of the Act, a remittance card facility is deemed not to be a facility if the conditions set out in regulation 5 are satisfied.

5 Conditions

  • The conditions referred to in regulation 4 are as follows:

    • (a) the identity of the principal facility holder of the remittance card facility is verified in accordance with section 6 of the Financial Transactions Reporting Act 1996:

    • (b) the remittance card facility is one on which transactions may not be made by means of a cheque:

    • (c) the remittance card facility cannot operate with a debit balance:

    • (d) a financial institution may only have 2 cards on issue at any one time in respect of a remittance card facility, one of which must be held by the principal facility holder and the other by 1 other person (the second card holder):

    • (e) in any consecutive 12-month period, the aggregated value of the transactions involving payments from the remittance card facility must not exceed the prescribed amount:

    • (f) the maximum balance of the remittance card facility does not exceed the prescribed amount:

    • (g) the remittance card facility's terms and conditions must include the conditions set out in paragraphs (e) and (f):

    • (h) the principal facility holder must acknowledge in writing—

      • (i) that the principal purpose of the remittance card facility is for the withdrawal of cash from an automatic teller machine outside New Zealand or the transfer of value or withdrawal of cash at a point of sale outside New Zealand; and

      • (ii) that at the time the remittance card facility is established the second card holder is not resident in New Zealand:

    • (i) the principal facility holder must not hold more than 1 remittance card facility with any 1 financial institution in any period of 12 consecutive months:

    • (j) the financial institution must, in accordance with section 30 of the Act, keep all records as are reasonably necessary to—

      • (i) identify the name and address of the second card holder; and

      • (ii) establish that the second card holder is not resident in New Zealand:

    • (k) payments into the remittance card facility can only be made in New Zealand:

    • (l) financial institutions offering a remittance card facility carry out, in respect of the facility,—

      • (i) ongoing due diligence; and

      • (ii) monitoring of transactions.

Rebecca Kitteridge,
Clerk of the Executive Council.

Explanatory note

This note is not part of the regulations, but is intended to indicate their general effect.

These regulations, which come into force on the day after the date of their notification in the Gazette, relate to the definition of facility in the Financial Transactions Reporting Act 1996 and deem remittance card facilities not to be facilities for the purposes of section 6 of that Act if certain conditions are met. The regulations have the effect of exempting financial institutions from the requirement to verify the identity of the second card holder of the facility. The purpose of these regulations is to facilitate remittances from people in New Zealand to people in other countries, particularly Pacific Island countries. Financial institutions are not exempt from any other requirements of the Financial Transactions Reporting Act 1996.

Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 18 September 2008.

These regulations are administered by the Ministry of Justice.