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.