Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2013

2013/231

Coat of Arms of New Zealand

Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2013

Jerry Mateparae, Governor-General

Order in Council

At Wellington this 27th day of May 2013

Present:
His Excellency the Governor-General in Council

Pursuant to sections 153 and 154 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, His Excellency the Governor-General makes the following regulations, acting—

  • (a) on the advice and with the consent of the Executive Council; and

  • (b) in relation to regulations made under section 154 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, on the recommendation of the Minister (as defined by section 5 of that Act) made in accordance with section 154(2) and (3) of that Act.

Regulations

1 Title
  • These regulations are the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2013.

2 Commencement
  • (1) These regulations, other than regulation 13, come into force on 30 June 2013.

    (2) Regulation 13 comes into force on 30 June 2018.

3 Principal regulations
4 Regulation 5 and cross-heading revoked
  • Revoke regulation 5 and the cross-heading above regulation 5.

5 Regulation 7 amended (Certain transactions at cashier of casino exempt from section 49(2) of Act)
  • (1) In the heading to regulation 7, replace at cashier of casino exempt from section 49(2) with in casinos exempt from section 49.

    (2) Replace regulation 7(1) with:

    • (1) This regulation applies to 1 or more of the following transactions that take place at the cashier of a casino or at a gaming table in a casino:

      • (a) the purchase of chips or tokens below $6,000:

      • (b) the redemption of chips or tokens below $6,000:

      • (c) the exchange of coins below $6,000 into different denominations of the same currency:

      • (d) the exchange of notes below $6,000 into different denominations of the same currency.

6 Regulation 13 amended (Relevant services provided by non-finance business in respect of provision of consumer credit)
  • (1) In the heading to regulation 13, replace provision of consumer with certain types of.

    (2) Replace regulation 13(1) with:

    • (1) This regulation applies to a relevant service provided in respect of the provision of credit in the ordinary course of a non-finance business by one person (person A) to another person (person B) if—

      • (a) the provision of credit to person B—

        • (i) is not provided under a credit contract; or

        • (ii) is provided under a credit contract that is incidental to the supply of goods or services, or both, by person A to person B; or

      • (b) the credit contract to which the provision of credit relates is assigned by person A in the ordinary course of the non-finance business within 1 working day of providing the credit to person B under the credit contract.

7 Regulation 14 amended (Relevant services provided in respect of certain loyalty schemes)
  • (1) In regulation 14(3), definition of loyalty scheme, paragraph (a), replace the purchase of goods from, or the use of, with the acquisition of goods or services from.

    (2) In regulation 14(3), definition of loyalty scheme, paragraph (b), replace the purchase of goods from, or the use of services of, with the acquisition of goods or services from.

    (3) After regulation 14(3), insert:

    • (4) In this regulation, acquisition,—

      • (a) in relation to goods, means acquiring goods by way of gift, sale, exchange, lease, hire, or hire purchase; and

      • (b) in relation to services, includes accepting a service.

8 Regulation 15 replaced (Relevant services provided in respect of certain stored value instruments)
  • Replace regulation 15 with:

    15 Relevant services provided in respect of certain stored value instruments
    • (1) This regulation applies to a relevant service provided in respect of a stored value instrument that—

      • (a) has a maximum possible value at any one time of less than,—

        • (i) if the stored value instrument is redeemable for cash, $1,000:

        • (ii) if the stored value instrument is not redeemable for cash, $5,000; and

      • (b) is not capable of being reloaded with $10,000 or more in any consecutive 12-month period; and

      • (c) is not capable of being reloaded directly through transfer from an account held at a financial institution that is—

        • (i) unregulated for AML/CFT purposes; or

        • (ii) located in a country with insufficient money laundering and countering financing of terrorism systems and measures.

      (2) A relevant service to which this regulation applies is exempt from all of the provisions of the Act.

      (3) For the purposes of this regulation,—

      debit card means an instrument that can be used to withdraw cash or make payments by debiting an account held at a financial institution

      gift facility has the same meaning as in regulation 9(2) of the Financial Service Providers (Exemptions) Regulations 2010

      stored value instrument

      • (a) means a portable device, including a gift facility, that is capable of storing monetary value in a form that is not physical currency, regardless of whether the device is reloadable or able to be redeemed for cash; and

      • (b) includes—

        • (i) a portable device whose value, or associated value, is transferable to a third party or able to be remitted; and

        • (ii) any account or other arrangement associated with the value stored on the device; but

      • (c)  does not include a credit card or a debit card.

9 Regulation 18 amended (Relevant services provided under premium funding agreement by non-insurance company)
  • In regulation 18(2), replace sections 15 to 17, 19 to 21, and 23 to 25 with sections 14 to 26.

10 New regulation 20A inserted (Relevant services provided in respect of certain employer superannuation schemes)
  • After regulation 20, insert:

    20A Relevant services provided in respect of certain employer superannuation schemes
    • (1) A relevant service provided in respect of promoting or operating a limited employer superannuation scheme or a specified restricted scheme is exempt from all of the provisions of the Act.

      (2) In this regulation,—

      associated person has the same meaning as in section 2(2) of the Securities Markets Act 1988

      complying superannuation fund and Crown contribution have the same meanings as in section 4(1) of the KiwiSaver Act 2006

      employer superannuation scheme means a registered superannuation scheme (within the meaning of section 2(1) of the Superannuation Schemes Act 1989) that—

      • (a) is promoted by 1 employer and admission to the membership of which is conditional on either or both of the following:

        • (i) being an employee of that employer or an employee of an associated person of that employer:

        • (ii) being a relative, spouse, civil union partner, de facto partner, or dependant of a person who is an employee of that employer or an employee of an associated person of that employer; or

      • (b) is closed to new members and that was promoted only by—

        • (i) 1 employer; or

        • (ii) 1 employer and 1 or more associated persons of that employer

      limited employer superannuation scheme means an employer superannuation scheme under which—

      • (a) the nature of the contributions to the scheme and the quantum of those contributions, or the manner of calculating that quantum, are provided for in the trust deed that governs the scheme:

      • (b) the only kinds of contributions that may be made to the scheme are—

        • (i) contributions made by members and employers:

        • (ii) transfers from other superannuation schemes:

        • (iii) in the case of a complying superannuation scheme, Crown contributions:

      • (c) the contributions payable by each member who is an employee and the contributions payable by the employer for that member are both determined by a percentage of that member's salary or wages, except where the scheme operates on the principle of unallocated funding:

      • (d) the employer deducts the contributions payable by members who are employees from their salaries or wages and, when the employer's own contributions become payable, pays those members' contributions with the employer's contributions into the scheme's bank account or to the scheme's administrator

      specified restricted scheme means a KiwiSaver scheme that is specified in section 61 of the KiwiSaver Amendment Act 2011.

11 Regulation 23 replaced (Relevant services provided in respect of overseas pension bank accounts)
  • Replace regulation 23 with:

    23 Relevant services provided in respect of overseas pension bank accounts
    • A relevant service provided in respect of a special bank account within the meaning of the Social Security (Alternative Arrangement for Overseas Pensions) Regulations 1996 is exempt from sections 14 to 26 of the Act.

12 Regulation 24 amended (Relevant services provided in respect of trust accounts)
  • (1) In the heading to regulation 24, after trust accounts, insert or client funds accounts.

    (2) In regulation 24(1), after a trust account, insert or client funds account.

    (3) In regulation 24(1)(c), after trust account, insert or client funds account.

    (4) In regulation 24(3), replace trust account with trust account or client funds account.

13 Principal regulations revoked

Michael Webster,
for 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 amend the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 (the principal regulations). The regulations, except for regulation 13, come into force on 30 June 2013, the same date on which the principal regulations come into force. Regulation 13 comes into force on 30 June 2018, the date immediately after the expiry of the principal regulations.

Regulation 4 revokes regulation 5 of the principal regulations, which exempts wire transfers of $1,000 or less from the obligation of identifying the originator. The substance of the regulation is relocated in the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011 by the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013. The effect of that relocation is to set a permanent threshold of $1,000 for wire transfers.

Regulation 5 amends regulation 7 of the principal regulations, which exempts certain transactions that take place at the cashier of a casino from certain record-keeping requirements. The amendment extends the exemption to transactions that take place at a gaming table in a casino. The amendment also limits the exemption for the exchange of coins and notes in a casino to exchanges of money in the same currency.

Regulation 6 amends regulation 13 of the principal regulations, which provides exemptions for consumer credit provided by non-finance businesses, that is businesses whose only or principal business is the provision of goods or non-financial services. The existing exemptions for those businesses are restricted to cases where credit is given to consumers. The amendment removes that restriction.

Regulation 7 amends regulation 14 of the principal regulations, which exempts certain loyalty schemes. The amendment clarifies that schemes are not excluded from the exemption just because credits are awarded for the supply of services or for transactions other than sales.

Regulation 8 replaces regulation 15 of the principal regulations, which relates to stored value instruments (in general terms, cards issued to enable purchases of certain goods and services). The new regulation 15 is in the same terms as the former regulation, except for the following differences. The new regulation limits the exemption by excluding from its ambit instruments that can be reloaded with $10,000 or more in any consecutive 12-month period or that can be reloaded directly through a transfer from an account held at a financial institution that is unregulated for money laundering and countering financing of terrorism purposes, or that is located in a country with insufficient measures against money laundering and countering financing of terrorism. The new regulation contains a definition of debit card because a debit card is excluded from the definition of stored value instrument. The definition of stored value instrument is further changed by deleting the words “other device in respect of which a person is required to conduct customer due diligence in accordance with the Act”, because those words could be read as depriving stored value instruments of the benefit of the exemption.

Regulation 9 amends regulation 18 of the principal regulations, which provides exemptions for certain services provided under premium funding agreements. The effect of the amendment is to exempt such services wholly from undertaking customer due diligence.

Regulation 10 inserts a new regulation 20A, which exempts limited employer superannuation schemes as well as KiwiSaver schemes that are specified in section 61 of the KiwiSaver Amendment Act 2011 from the provisions of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. A limited employer superannuation scheme is one that is open only to employees of the person promoting the scheme or to the spouses, civil union partners, de facto partners, or dependants of those employees and that is subject to a number of other restrictions.

Regulation 11 replaces regulation 23 of the principal regulations, which relates to bank accounts opened under social welfare legislation for the receipt of overseas pensions. The effect of the replacement is to wholly exempt banks from undertaking customer due diligence in respect of such accounts.

Regulation 12 amends regulation 24 of the principal regulations, which conditionally exempts reporting entities with whom trust accounts are held from having to conduct due diligence in respect of the beneficiaries for whom the funds in the trust accounts are held. The amendment extends the exemption to any account that is operated by a reporting entity or person subject to the Financial Transactions Reporting Act 1996 for the purpose of holding funds that belong to more than 1 client. The conditions specified in the principal regulations for the exemption remain unchanged.

Regulation 13 revokes the principal regulations on 30 June 2018, that is, immediately after their expiry in accordance with regulation 3 of the principal regulations.


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

Date of notification in Gazette: 30 May 2013.

These regulations are administered by the Ministry of Justice.