Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011

Reprint as at 9 July 2021

Coat of Arms of New Zealand

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011

(SR 2011/222)

Anand Satyanand, Governor-General

Order in Council

At Wellington this 27th day of June 2011

Present:
His Excellency the Governor-General in Council

Note

Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this official reprint.

Note 4 at the end of this reprint provides a list of the amendments incorporated.

These regulations are administered by the Ministry of Justice.

Pursuant to sections 5, 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 that Act, 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.

Contents

1Title
2Commencement
3Expiry [Revoked]
4Interpretation
Definition of beneficial owner
5Prescribed threshold
Applicable threshold value for wire transfer
5AApplicable threshold value for wire transfer is $1,000
Applicable threshold value for high-value dealers
5ABApplicable threshold value for high-value dealers is $10,000
Definition of customer
5BDefinition of customer
Definition of designated business group
6Prescribed election process
7Prescribed member: certain money transfer service agents and sub-agents
7APrescribed member: limited partnerships
8Prescribed member: overseas companies, etc [Revoked]
9Prescribed condition of membership of designated business group [Revoked]
Definition of occasional transaction
10Applicable threshold value
11Inclusion: cash transaction in casino: $6,000 or more
12Inclusion: travellers cheques: $5,000 or more
13Inclusion: money orders or postal orders: $1,000 or more
13AInclusion: wire transfers of more than $1,000
14Inclusion: currency exchange transactions: $1,000 or more
15Inclusion: transactions involving certain stored value instruments
Definition of reporting entity
16Inclusion: certain financial advice providers
17Inclusion: trust and company service providers [Revoked]
18Exclusion: reporting entities whose every relevant service is exempt from Act
18AExclusion: non-finance businesses that transfer money to facilitate purchase of goods or services
19Exclusion: accommodation provider that provides registered guest with safety deposit box
20Exclusion: lawyers, etc [Revoked]
21Exclusion: pawnbrokers
21AExclusion: providers of Internet auctions
21ABExclusion: certain registered auctioneers
21BExclusion: property management activities
22Exclusion: financial institutions that are in liquidation, etc
23Exclusion: public service agencies
24Exclusion: Reserve Bank of New Zealand
Timing of due diligence
24ATime at which real estate agents must conduct customer due diligence
Prescribed enactments
[Revoked]
25Financial Service Providers (Registration and Dispute Resolution) Act 2008 prescribed for certain purposes [Revoked]
Gazette Information
Reprint notes

Regulations

1 Title

These regulations are the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011.

2 Commencement

(1)

These regulations come into force on 28 July 2011.

(2)

However, regulations 11 to 24 (as replaced by the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 on 27 July 2016) come into force on 27 July 2016.

Regulation 2(2): inserted, on 27 July 2016, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

3 Expiry
[Revoked]

Regulation 3: revoked, on 9 July 2021, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

4 Interpretation

In these regulations, unless the context otherwise requires,—

financial activity means any financial activity referred to in paragraph (a)(i) to (xiii) of the definition of financial institution in section 5(1) of the Act

relevant service means,—

(a)

in relation to a financial institution, services provided by the financial institution in the course of carrying out a financial activity; and

(b)

in relation to a reporting entity that is not a financial institution, services provided by the reporting entity in the course of carrying out an activity (including, to avoid doubt, a financial activity) that attracts any obligations under the Act or the regulations.

Regulation 4 financial activity: amended, on 18 January 2018, by regulation 5 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

Definition of beneficial owner

5 Prescribed threshold

For the purposes of paragraph (b) of the definition of beneficial owner in section 5(1) of the Act, the prescribed threshold is more than 25%.

Regulation 5: amended, on 18 January 2018, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

Regulation 5: amended, on 30 June 2013, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 (SR 2013/230).

Applicable threshold value for wire transfer

Heading: inserted, on 30 June 2013, by regulation 5 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 (SR 2013/230).

5A Applicable threshold value for wire transfer is $1,000

For the purposes of section 27(1) of the Act, the applicable threshold value of a wire transfer is $1,000.

Regulation 5A: inserted, on 30 June 2013, by regulation 5 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 (SR 2013/230).

Applicable threshold value for high-value dealers

Heading: inserted, on 1 August 2019, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2019 (LI 2019/143).

5AB Applicable threshold value for high-value dealers is $10,000

For the purposes of the definition of high-value dealer in section 5(1) of the Act, the applicable threshold value is $10,000.

Regulation 5AB: inserted, on 1 August 2019, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2019 (LI 2019/143).

Definition of customer

Heading: inserted, on 1 January 2019, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125).

5B Definition of customer

(1)

For the purposes of paragraph (c) of the definition of customer in section 5(1) of the Act, a customer, in relation to a real estate agent (as defined in section 4(1) of the Real Estate Agents Act 2008)—

(a)

means a client (as defined in section 4(1) of the Real Estate Agents Act 2008) of that real estate agent; and

(b)

does not include any party to a real estate transaction on whose behalf the real estate agent is not carrying out real estate agency work; but

(c)

despite paragraph (b), includes a person who conducts an occasional transaction with a real estate agent.

(2)

For the purposes of paragraph (b)(iv) of the definition of customer in section 5(1) of the Act, a customer,—

(a)

in relation to a liquidator appointed under section 241(2)(c) of the Companies Act 1993, means the company in liquidation; and

(b)

in relation to the provision of relevant services to an executor or administrator of an estate, means that executor or administrator.

Regulation 5B: inserted, on 1 January 2019, by regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125).

Regulation 5B(2): inserted, on 9 July 2021, by regulation 5 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Definition of designated business group

6 Prescribed election process

(1)

For the purposes of paragraph (b) of the definition of designated business group in section 5(1) of the Act, an election is made in accordance with these regulations if it is made in writing in the form issued by, and provided to, the AML/CFT supervisor, which must contain the following information:

(a)

the name of each entity electing to join the designated business group:

(b)

the name and contact details of a contact person for the designated business group:

(c)

the name and contact details of each entity’s intended AML/CFT compliance officer:

(d)

sufficient information to determine that each entity is eligible:

(e)

the date that the election will take effect (if more than 30 days from submission of an application containing the information in paragraphs (a) to (d)).

(2)

An election comes into force on the latest of the following:

(a)

the expiry of the initial 30-day period if the AML/CFT supervisor has not requested further information during that period:

(b)

if the AML/CFT supervisor has requested further information during the initial 30-day period, the expiry of any second or subsequent 30-day period during which the AML/CFT supervisor has not indicated that the entity is ineligible or that its eligibility cannot be determined:

(c)

the date stated in the form.

(3)

In this regulation,—

initial 30-day period means the period of 30 days that commences on the day after receipt of the approved form by the AML/CFT supervisor

second or subsequent 30-day period means a period of 30 days that commences on the day after receipt of any further information requested by the AML/CFT supervisor.

Regulation 6(1): amended, on 18 January 2018, by regulation 7 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

7 Prescribed member: certain money transfer service agents and sub-agents

(1)

Reporting entities are entities, for the purposes of paragraph (d)(xiii) of the definition of designated business group in section 5 of the Act, if—

(a)

the entities are each money transfer agents or sub-agents; and

(b)

each entity is related to every other entity in the designated business group or proposed designated business group in either of the following ways:

(i)

one of those entities is a money transfer agent and the other entities are the sub-agents of that agent:

(ii)

those entities are each sub-agents of the same money transfer agent.

(2)

[Revoked]

Regulation 7(1): amended, on 18 January 2018, by regulation 8(1) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

Regulation 7(2): revoked, on 18 January 2018, by regulation 8(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

7A Prescribed member: limited partnerships

(1)

A related limited partnership is an entity for the purposes of paragraph (d)(xiii) of the definition of designated business group in section 5(1) of the Act.

(2)

For the purposes of this regulation, limited partnership has the meaning set out in section 6 of the Limited Partnerships Act 2008.

Regulation 7A: inserted, on 9 July 2021, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

8 Prescribed member: overseas companies, etc
[Revoked]

Regulation 8: revoked, on 1 August 2019, by section 69(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

9 Prescribed condition of membership of designated business group
[Revoked]

Regulation 9: revoked, on 1 August 2019, by section 69(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).

Definition of occasional transaction

10 Applicable threshold value

(1)

For the purposes of paragraph (a) of the definition of occasional transaction in section 5(1) of the Act, the applicable threshold value is $10,000.

(2)

To avoid doubt, subclause (1) does not apply to a transaction or class of transactions declared by regulations to be an occasional transaction for the purposes of the Act.

Regulation 10(1): replaced, on 18 January 2018, by regulation 11 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

11 Inclusion: cash transaction in casino: $6,000 or more

(1)

This regulation applies to every cash transaction that—

(a)

occurs outside of a business relationship in a casino; and

(b)

is for an amount of $6,000 or more (whether the transaction is carried out in a single operation or several operations that appear to be linked).

(2)

Every cash transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.

Regulation 11: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

12 Inclusion: travellers cheques: $5,000 or more

(1)

This regulation applies to every transaction that—

(a)

occurs outside of a business relationship; and

(b)

involves travellers cheques; and

(c)

is for an amount of $5,000 or more (whether the transaction is carried out in a single operation or several operations that appear to be linked).

(2)

Every transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.

Regulation 12: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

13 Inclusion: money orders or postal orders: $1,000 or more

(1)

This regulation applies to every transaction that—

(a)

occurs outside of a business relationship; and

(b)

involves a money order or postal order; and

(c)

is for an amount of $1,000 or more (whether the transaction is carried out in a single operation or several operations that appear to be linked).

(2)

Every cash transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.

Regulation 13: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

13A Inclusion: wire transfers of more than $1,000

(1)

This regulation applies to every transaction—

(a)

that is a wire transfer; and

(b)

that involves an amount of more than $1,000 (whether the transaction is carried out in a single operation or several operations that appear to be linked); and

(c)

that—

(i)

is carried out by a reporting entity that is an ordering institution and occurs outside of a business relationship with the originator; or

(ii)

involves the receipt of funds by a reporting entity that is a beneficiary institution and occurs outside of a business relationship with the beneficiary.

(2)

Every transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.

Regulation 13A: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

Regulation 13A(1): replaced, on 9 July 2021, by regulation 7 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

14 Inclusion: currency exchange transactions: $1,000 or more

(1)

This regulation applies to every transaction that—

(a)

occurs outside of a business relationship; and

(b)

involves currency exchange; and

(c)

is for an amount of $1,000 or more (whether the transaction is carried out in a single operation or several operations that appear to be linked).

(2)

Every transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.

Regulation 14: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

15 Inclusion: transactions involving certain stored value instruments

(1)

This regulation applies to every transaction (whether the transaction is carried out in a single operation or several operations that appear to be linked) that occurs outside of a business relationship and that involves the issuing or provision of a stored value instrument that—

(a)

has a maximum possible value at any one time of,—

(i)

if the stored value instrument is redeemable for cash, $1,000 or more:

(ii)

if the stored value instrument is not redeemable for cash, $5,000 or more; or

(iii)

despite subparagraphs (i) and (ii), if the stored value instrument is a voucher issued by TAB NZ, $10,000 or more; or

(b)

is capable of being reloaded with $10,000 or more in any consecutive 12-month period; or

(c)

is 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.

(1A)

Where the transaction under subclause (1) involves several operations that appear to be linked, the maximum possible value thresholds in subclauses (1)(a) and (b) apply to the combined total maximum value of all of the stored value instruments issued that are of the same kind (for example, all of the instruments are redeemable for cash or all of the instruments are not redeemable for cash).

(2)

This regulation does not apply to a stored value instrument that—

(a)

is issued or provided by a casino solely for 1 or more of the following purposes:

(i)

to facilitate gambling in the casino:

(ii)

to redeem winnings from gambling in the casino:

(iii)

to redeem unused credit provided by the casino; and

(b)

has a maximum potential value at any one time of less than $6,000.

(3)

Every transaction to which this regulation applies is declared to be an occasional transaction for the purposes of the Act.

(4)

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 that is not a non-finance business

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

non-finance business means a person whose only or principal business is the provision of goods or services that are not relevant services

stored value instrument—

(a)

means a portable device, including a gift facility or voucher, 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 is 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

voucher includes any document or other instrument issued by TAB NZ that has a monetary value and can be used to facilitate or carry out a transaction (for example to place a bet) irrespective of whether—

(a)

it can be redeemed for cash:

(b)

it can be split or consolidated for use in 2 or more transactions.

Regulation 15: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

Regulation 15(1): amended, on 9 July 2021, by regulation 8(1) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Regulation 15(1)(a)(iii): inserted, on 1 August 2019, by regulation 4(1) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations (No 2) 2018 (LI 2018/199).

Regulation 15(1)(a)(iii): amended, on 1 August 2020, by section 129 of the Racing Industry Act 2020 (2020 No 28).

Regulation 15(1A): inserted, on 9 July 2021, by regulation 8(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Regulation 15(4) debit card: amended, on 9 July 2021, by regulation 8(3) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Regulation 15(4) non-finance business: inserted, on 9 July 2021, by regulation 8(4) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Regulation 15(4) stored value instrument paragraph (a): amended, on 1 August 2019, by regulation 4(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations (No 2) 2018 (LI 2018/199).

Regulation 15(4) voucher: inserted, on 1 August 2019, by regulation 4(3) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations (No 2) 2018 (LI 2018/199).

Regulation 15(4) voucher: amended, on 1 August 2020, by section 129 of the Racing Industry Act 2020 (2020 No 28).

Definition of reporting entity

Heading: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

16 Inclusion: certain financial advice providers

(1)

This regulation applies to a financial advice provider so far as that provider arranges for a reporting entity to provide a relevant service in respect of a relevant product to a customer or an intended customer of the reporting entity.

(2)

Subject to regulation 20, a financial advice provider to whom this regulation applies is declared to be a reporting entity for the purposes of the Act.

(3)

An individual (person A) to whom this regulation applies is deemed to have complied with the Act and any regulations if—

(a)

the obligations that apply to person A under the Act and any regulations are discharged by another reporting entity (person B); and

(b)

person A is a partner, director, employee, agent, or other person acting in the course of, and for the purposes of, person B’s business.

(4)

In this regulation,—

(a)

bank notice product, bonus bond, call building society share, call credit union share, call debt security, co-operative share, credit union fixed term deposit product, credit union savings account product, fixed term redeemable building society share, PIE call fund unit, and PIE term fund unit have the same meanings as in regulation 5(1) of the Financial Markets Conduct Regulations 2014:

(b)

DIMS facility, financial advice provider, financial product, and investment authority have the same meanings as in section 6(1) of the Financial Markets Conduct Act 2013:

(c)

investment-linked contract of insurance means any contract of insurance other than—

(i)

a pure risk contract of insurance (within the meaning of section 9(3) of the Financial Markets Conduct Act 2013); or

(ii)

a life insurance policy (within the meaning of section 2(1) of the Securities Act 1978) issued before 1 January 2009.

(5)

In this regulation, relevant product—

(a)

means—

(i)

a financial product (other than a product referred to in paragraph (b)); or

(ii)

a DIMS facility (other than a facility referred to in paragraph (b)(xiii)); or

(iii)

an investment-linked contract of insurance; or

(iv)

a renewal or variation of the terms or conditions of an existing product referred to in any of subparagraphs (i) to (iii); but

(b)

does not include any of the following products:

(i)

a bank notice product:

(ii)

a bonus bond:

(iii)

a call building society share:

(iv)

a call credit union share:

(v)

a call debt security:

(vi)

a co-operative share:

(vii)

a credit union fixed term deposit product:

(viii)

a credit union savings account product:

(ix)

a fixed term deposit product issued by a registered bank:

(x)

a fixed term redeemable building society share:

(xi)

a PIE call fund unit:

(xii)

a PIE term fund unit:

(xiii)

a DIMS facility, if the investment authority covers only 1 or more products referred to in any of subparagraphs (i) to (xii):

(xiv)

a renewal or variation of the terms or conditions of an existing product referred to in any of subparagraphs (i) to (xiii).

Regulation 16: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

Regulation 16 heading: amended, on 15 March 2021, by regulation 4(1) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2020 (LI 2020/311).

Regulation 16(1): replaced, on 15 March 2021, by regulation 4(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2020 (LI 2020/311).

Regulation 16(2): amended, on 15 March 2021, by regulation 4(3) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2020 (LI 2020/311).

Regulation 16(4): replaced, on 15 March 2021, by regulation 4(4) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2020 (LI 2020/311).

Regulation 16(5): inserted, on 15 March 2021, by regulation 4(4) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2020 (LI 2020/311).

17 Inclusion: trust and company service providers
[Revoked]

Regulation 17: revoked, on 1 July 2018, by regulation 12 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305).

18 Exclusion: reporting entities whose every relevant service is exempt from Act

(1)

This regulation applies to a person who, but for this regulation, would be a reporting entity (whether because the person is a financial institution or otherwise) but who only performs relevant services that are exempt from all provisions of the Act.

(2)

A person to whom this regulation applies is declared not to be a reporting entity for the purposes of the Act.

Regulation 18: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

18A Exclusion: non-finance businesses that transfer money to facilitate purchase of goods or services

(1)

A person is not a reporting entity, for the purposes of the Act, by reason only that, in the ordinary course of a non-finance business, the person transfers money on behalf of a customer to facilitate the purchase of goods or services by the customer.

(2)

In this regulation, non-finance business means a person whose only or principal business is the provision of goods or services that are not relevant services.

Regulation 18A: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

19 Exclusion: accommodation provider that provides registered guest with safety deposit box

(1)

If the condition in subclause (2) is satisfied, it is declared that a person is not a reporting entity, for the purposes of the Act, by reason only that, in the ordinary course of the person’s business as a provider of accommodation, the person provides his or her registered guests with a safety deposit box or safety deposit boxes.

(2)

The condition is that the safety deposit box is—

(a)

located in the room of the registered guest and is controlled by the registered guest; or

(b)

located outside the room of the registered guest but within the place of the traveller accommodation, is controlled by the provider of the traveller accommodation, and holds funds of registered guests.

(3)

In this regulation, registered guest means a guest whose name and contact details have been recorded by the provider of the accommodation.

Regulation 19: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

20 Exclusion: lawyers, etc
[Revoked]

Regulation 20: revoked, on 9 July 2021, by regulation 9 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

21 Exclusion: pawnbrokers

It is declared that a person is not a reporting entity, for the purposes of the Act, by reason only that the person carries out a relevant service in the ordinary course of the person’s business as a pawnbroker within the meaning of section 4 of the Secondhand Dealers and Pawnbrokers Act 2004.

Regulation 21: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

21A Exclusion: providers of Internet auctions

(1)

[Revoked]

(2)

It is declared that a person is not a reporting entity, for the purposes of the Act, by reason only that the person provides relevant services in the ordinary course of the person’s business as a provider of Internet auctions.

(3)

In this regulation,—

auction means a process in which property of any kind (including goods, services, and interests in land) is offered for sale by an auctioneer on behalf of a vendor, and—

(a)

bids for the property are placed with the auctioneer in real time, whether in person, by telephone, via the Internet, or by any other means; and

(b)

the property is sold when the auctioneer so indicates

Internet auction means a process, not being an auction as defined by this subclause, that is operated online to enable members of the public to conclude contracts for the sale and purchase of goods or the provision and acquisition of non-financial services

non-financial service means a service that is not, or does not include, a relevant service.

Regulation 21A: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

Regulation 21A heading: amended, on 1 January 2019, by regulation 5(1) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125).

Regulation 21A(1): revoked, on 1 January 2019, by regulation 5(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125).

21AB Exclusion: certain registered auctioneers

(1)

A person who is a registered auctioneer is declared not to be a reporting entity for the purposes of the Act.

(2)

However, the declaration does not apply to a registered auctioneer who—

(a)

provides real estate agency work referred to in paragraph (a) of the definition of designated non-financial business or profession in section 5(1) of the Act; or

(b)

carries out the activities referred in paragraph (a) of the definition of high-value dealer in section 5(1) of the Act; or

(c)

is a reporting entity under the Act for a reason other than being a registered auctioneer.

(3)

A registered auctioneer that is a reporting entity by reason only that the registered auctioneer has reporting obligations for the activities specified in subclause (2) has reporting obligations only in respect of those activities.

(4)

In this regulation, registered auctioneer has the same meaning as in section 4(1) of the Auctioneers Act 2013.

Regulation 21AB: inserted, on 1 August 2019, by regulation 5 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2019 (LI 2019/143).

21B Exclusion: property management activities

(1)

For the purposes of the definition of designated non-financial business or profession in section 5(1) of the Act (and the associated definition of reporting entity), a person who carries out any property management activity is not managing client funds, accounts, securities, or other assets.

(2)

In this regulation, property management activity—

(a)

means—

(i)

acting, or offering to act, for reward in respect of the negotiation, grant, approval, or assignment of tenancies in relation to residential premises (within the meaning of section 2(1) of the Residential Tenancies Act 1986), irrespective of whether that activity is carried on by itself or in conjunction with other businesses; and

(ii)

in relation to any real property (whether residential premises, commercial premises, or other real property),—

(A)

collecting or offering to collect money payable for the use, maintenance, repair, improvement, or oversight of any property; and

(B)

holding or disbursing money received for the use, maintenance, repair, improvement, or oversight of any property; and

(C)

holding or disbursing money received for the advertising of, or negotiating the use of, any property; and

(b)

includes advertising or negotiating, or any other act done directly or indirectly for the purpose of carrying out any activities referred to in paragraph (a); but

(c)

despite paragraphs (a)(ii) and (b), does not include—

(i)

acting, or offering to act, for reward in respect of the negotiation, grant approval, or assignment of a tenancy agreement for commercial premises (whether described as a lease, tenancy agreement, right to occupy, or otherwise) in relation to commercial premises (within the meaning of section 2(1) of the Residential Tenancies Act 1986); or

(ii)

real estate agency work (within the meaning of section 4(1) of the Real Estate Agents Act 2008).

Regulation 21B: inserted, on 1 January 2019, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125).

Regulation 21B heading: amended, on 9 July 2021, by regulation 10(1) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Regulation 21B(1): replaced, on 9 July 2021, by regulation 10(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

22 Exclusion: financial institutions that are in liquidation, etc

(1)

This regulation applies to a financial institution that is—

(a)

in liquidation under Part 16 of the Companies Act 1993 or under any other enactment; or

(b)

in receivership, where no debt securities are being offered or issued to the public by, or on behalf of, the financial institution; or

(c)

subject to a moratorium that prevents the financial institution from offering or issuing debt securities to the public.

(2)

A financial institution to which this regulation applies is declared not to be a reporting entity for the purposes of the Act.

Regulation 22: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

23 Exclusion: public service agencies

Every public service agency as defined in section 5 of the Public Service Act 2020 is declared not to be a reporting entity for the purposes of the Act.

Regulation 23: replaced, on 7 August 2020, by section 135 of the Public Service Act 2020 (2020 No 40).

24 Exclusion: Reserve Bank of New Zealand

The Reserve Bank of New Zealand is declared not to be a reporting entity for the purposes of the Act.

Regulation 24: replaced, on 27 July 2016, by regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132).

Timing of due diligence

Heading: inserted, on 1 January 2019, by regulation 7 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125).

24A Time at which real estate agents must conduct customer due diligence

(1)

For the purpose of sections 14(3), 18(3A), and 22(6) of the Act, a real estate agent who carries out real estate agency work,—

(a)

in relation to a commercial lease transaction, must conduct customer due diligence before the real estate agent presents an offer of lease to the landlord of the commercial property to which the transaction relates; and

(b)

in relation to any other real estate transaction, must conduct customer due diligence before the real estate agent enters into an agency agreement (within the meaning of section 4(1) of the Real Estate Agents Act 2008) with a customer.

(2)

For the purposes of this regulation, commercial lease transaction means a transaction included in paragraph (b) of the definition of transaction in section 4(1) of the Real Estate Agents Act 2008.

Regulation 24A: replaced, on 9 July 2021, by regulation 11 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Prescribed enactments[Revoked]

Heading: revoked, on 9 July 2021, by regulation 12 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

25 Financial Service Providers (Registration and Dispute Resolution) Act 2008 prescribed for certain purposes
[Revoked]

Regulation 25: revoked, on 9 July 2021, by regulation 12 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145).

Rebecca Kitteridge,
Clerk of the Executive Council.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 30 June 2011.

Reprints notes
1 General

This is a reprint of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011 that incorporates all the amendments to those regulations as at the date of the last amendment to them.

2 Legal status

Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment. Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, has the status of an official version under section 17 of that Act. A printed version of the reprint produced directly from this official electronic version also has official status.

3 Editorial and format changes

Editorial and format changes to reprints are made using the powers under sections 24 to 26 of the Legislation Act 2012. See also http://www.pco.parliament.govt.nz/editorial-conventions/.

4 Amendments incorporated in this reprint

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2021 (LI 2021/145)

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2020 (LI 2020/311)

Public Service Act 2020 (2020 No 40): section 135

Racing Industry Act 2020 (2020 No 28): section 129

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2019 (LI 2019/143)

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations (No 2) 2018 (LI 2018/199) (as amended by Racing Reform Act 2019 (2019 No 32))

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2018 (LI 2018/125)

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2017 (LI 2017/305)

Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35): section 69

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2016 (LI 2016/132)

Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Amendment Regulations 2013 (SR 2013/230)