Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2023
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2023/159
Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2023
Cindy Kiro, Governor-General
Order in Council
At Wellington this 26th day of June 2023
Present:
The Hon Carmel Sepuloni presiding in Council
These regulations are made under sections 153 and 154 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009—
(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 of Justice made in accordance with section 154(2) and (3) of that Act.
Contents
Regulations
1 Title
These regulations are the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2023.
2 Commencement
3 Principal regulations
These regulations amend the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011.
Part 1 Amendments commencing on 31 July 2023
4 Regulation 4 amended (Interpretation)
In regulation 4, insert in its appropriate alphabetical order:
Entain New Zealand Limited means the company that has entered into partnering arrangement with TAB NZ in accordance with section 54(4) of the Racing Industry Act 2020
5 Regulation 6AB replaced (Exemption of TAB NZ from some duties under section 31 of Act)
Replace regulation 6AB with:
6AB Exemption of TAB NZ and Entain New Zealand Limited from some duties under section 31 of Act
(1)
TAB NZ, in carrying out its duties under section 31 of the Act, is not required to link a cash transaction between a person and TAB NZ involving less than $10,000.
(2)
Entain New Zealand Limited, in carrying out its duties under section 31 of the Act, is not required to link a cash transaction between a person and Entain New Zealand Limited involving less than $10,000.
6 Regulation 7A amended (Certain transactions with TAB NZ exempt from section 49(2) of Act)
(1)
In the heading to regulation 7A, after “TAB NZ”
, insert “or Entain New Zealand Limited”
.
(2)
In regulation 7A(1), after “TAB NZ”
, insert “or a person and Entain New Zealand Limited”
.
7 Regulation 9 amended (Certain currency exchange transactions in hotels, etc)
Replace regulation 9(1) with:
(1)
This regulation applies to a currency exchange transaction undertaken by a provider of hotel accommodation or any other accommodation where the provider only undertakes currency exchange transactions (or a series of related currency exchange transactions) that do not exceed $1,000.
8 Regulation 15 amended (Relevant services provided in respect of certain stored value instruments)
(1)
In regulation 15(1)(a)(iii), after “TAB NZ”
, insert “or Entain New Zealand Limited”
.
(2)
After regulation 15(1A), insert:
(1B)
However, nothing in subclause (1A) applies to a relevant service that involves several operations that appear to be linked where—
(a)
each stored value instrument is below the maximum possible value thresholds in subclause (1)(a) and (b); and
(b)
each stored value instrument appears to be for a different final recipient.
(3)
In regulation 15(3), replace the definition of stored value instrument with:
stored value instrument—
(a)
means an instrument (whether tangible or intangible), including a gift facility or voucher, that is capable of storing monetary value in a form that is not physical currency or of giving access to monetary value stored in a form that is not physical currency, regardless of whether the instrument is reloadable or able to be redeemed for cash; and
(b)
includes—
(i)
a portable instrument (whether tangible or intangible) 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 instrument; but
(c)
does not include—
(i)
a credit card or a debit card; or
(ii)
an instrument that stores a virtual asset
(4)
In regulation 15(3), insert in its appropriate alphabetical order:
virtual asset has the same meaning as in regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011
(5)
In regulation 15(3), definition of voucher, after “TAB NZ”
, insert “or Entain New Zealand Limited”
.
9 Regulation 22 amended (Debt collection services)
In regulation 22(2), replace “of debt”
with “of unpaid debt”
.
10 Regulation 24 revoked (Relevant services provided in respect of trust accounts or client funds accounts)
Revoke regulation 24.
11 Regulation 24AA amended (Relevant services provided by court-appointed liquidator)
(1)
Replace regulation 24AA(1) with:
(1)
This regulation applies to a relevant service provided by a liquidator in respect of—
(a)
the liquidation of a company where the liquidator is appointed by the court under section 241(2)(c) of the Companies Act 1993:
(b)
the liquidation of a limited partnership where the liquidator is appointed by the court under section 89 of the Limited Partnerships Act 2008.
(2)
Replace regulation 24AA(3) with:
(3)
However, the reporting entity must comply with the following provisions in relation to the relevant services specified:
(a)
if the relevant service to which this regulation applies relates to the provision of an international wire transfer by the liquidator,—
(i)
regulation 8 of the Anti-Money Laundering and Countering Financing of Terrorism (Prescribed Transactions Reporting) Regulations 2016; and
(ii)
subpart 2A of Part 2 of the Act:
(b)
if the relevant service relates to the disbursement of funds to a beneficial owner of the customer that has not previously been subject to customer due diligence, section 16(1)(b) of the Act.
12 New regulation 24AAB inserted (Relevant services provided by non-court-appointed liquidators)
After regulation 24AA, insert:
24AAB Relevant services provided by non-court-appointed liquidators
(1)
This regulation applies to a relevant service provided by a liquidator in respect of—
(a)
the liquidation of a company where the liquidator is appointed under section 241(2)(a), (b), or (d) of the Companies Act 1993:
(b)
the liquidation of a limited partnership where the liquidator is appointed under section 88 of the Limited Partnerships Act 2008.
(2)
A relevant service to which this regulation applies is exempt from the following sections of the Act:
(a)
sections 22(1)(a) to (c) and (2) to (6) and 22A:
(b)
sections 27 and 28:
(c)
section 31:
(d)
section 37(1)(b).
(3)
However,—
(a)
if the relevant service relates to the provision of an international wire transfer by the liquidator, the reporting entity must comply with—
(i)
regulation 8 of the Anti-Money Laundering and Countering Financing of Terrorism (Prescribed Transactions Reporting) Regulations 2016; and
(ii)
subpart 2A of Part 2 of the Act:
(b)
if the relevant service relates to the disbursement of funds to a beneficial owner of the customer that has not previously been subject to customer due diligence, the reporting entity must comply with section 16(1)(b) of the Act.
(4)
In this regulation, non-court-appointed liquidator,—
(a)
in relation to a company, means a liquidator appointed under section 241(2)(a), (b), or (d) of the Companies Act 1993; and
(b)
in relation to a limited partnership, means a liquidator appointed under section 88 of the Limited Partnerships Act 2008.
13 Regulation 24AC amended (Relevant services provided to subject of Commissioner of Police’s order and production order)
(1)
Replace the heading to regulation 24AC with “Relevant services provided to person subject to certain orders or requirements”
.
(2)
Replace regulation 24AC(1) with:
(1)
This regulation applies to a relevant service provided by a reporting entity to a person where the person—
(a)
is the subject of a Commissioner’s order, a production order, or a chief executive of Customs requirement; or
(b)
is an associate of the person referred to in paragraph (a).
(3)
In regulation 24AC(2)(a), replace “Commissioner’s order or production order”
with “Commissioner’s order, the production order, or the chief executive of Customs requirement (as the case may be)”
.
(4)
In regulation 24AC(4), after the definition of production order, insert:
chief executive of Customs requirement means a requirement imposed under section 252(1) of the Customs and Excise Act 2018
14 New regulations 24AF to 24AH inserted
After regulation 24AE, insert:
24AF Relevant services provided by company that is corporate trustee or nominee company
(1)
This regulation applies to a relevant service provided by a company that is a corporate trustee or a nominee company—
(a)
that is a subsidiary of, is controlled by, and delivers services on behalf of a reporting entity in New Zealand (a parent entity); and
(b)
that undertakes activities as a trustee or nominee on behalf of that parent entity; and
(c)
in respect of which the parent entity has established, and implements and maintains, an AML/CFT programme.
(2)
The relevant service to which this regulation applies is exempt from all of the provisions of the Act.
(3)
In subclause (1)(a), subsidiary means—
(a)
a wholly owned subsidiary; or
(b)
a company owned by—
(i)
2 or more accountants in public practice, and practising in partnership, who are partners; or
(ii)
2 or more solicitors in public practice, and practising in partnership, who are partners; or
(iii)
a solicitor in sole practice; or
(iv)
an accountant in sole practice.
24AG Relevant services provided by Crown entity
(1)
This regulation applies to a relevant service provided by a Crown entity (as defined in section 7 of the Crown Entities Act 2004) where the level of risk of money laundering and the financing of terrorism has been assessed by its AML/CFT supervisor to be low.
(2)
A relevant service to which this regulation applies is exempt from all of the provisions of the Act.
24AH Relevant services in relation to certain loans made by charitable entity
(1)
This regulation applies to a relevant service provided in respect of a loan or loans made to a borrower by a charitable entity that—
(a)
do not exceed a total of $6,000 at any time; and
(b)
prohibit the borrower from repaying the loan in cash.
(2)
A relevant service to which this regulation applies is exempt from all of the provisions of the Act, except subpart 2 of Part 2.
(3)
In subclause (1)(a), charitable entity has the same meaning as in section 4(1) of the Charities Act 2005.
Part 2 Amendments commencing on 1 June 2024
15 Regulation 6A amended (Certain entities exempt from reporting under section 48A of Act)
In regulation 6A, insert as subclause (2):
(2)
However, the exemption in subclause (1) does not apply in relation to an operator of a money or value transfer service unless the operator is a registered bank.
16 Regulation 8 revoked (Transactions that are not occasional transactions exempt from section 49(2)(d) of Act)
Revoke regulation 8.
17 Regulation 10 revoked (Relevant services provided in respect of certain remittance card facilities)
Revoke regulation 10.
Part 3 Amendment commencing on 1 June 2025
18 New regulation 9A inserted (Certain transactions with online marketplace)
After regulation 9, insert:
9A Certain transactions with online marketplace
(1)
This regulation applies to 1 or more transactions—
(a)
that take place in any consecutive 12–month period between a person who is the provider of an online marketplace and a person who is a buyer or a seller; and
(b)
that in total do not exceed $10,000 (whether carried out in a single operation or several operations that appear to be linked).
(2)
A transaction (or transactions) to which this regulation applies is exempt from the provisions of the Act, except—
(a)
subpart 2 of Part 2; and
(b)
if the transaction is relevant to a suspicious activity report, section 49; and
(c)
sections 92 to 100.
(3)
In this regulation,—
non-financial service means a service that is not, and does not include, a relevant service
online marketplace means a process 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.
Diana Hawker,
Acting 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), which exempt certain transactions, products, or services from some or all of the provisions of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act). These regulations, other than Parts 2 and 3, come into force on 31 July 2023. Part 2 comes into force on 1 June 2024. Part 3 comes into force on 1 June 2025.
Part 1 amends the principal regulations to—
insert into regulation 4, which is an interpretation provision, a new definition of Entain New Zealand Limited, being a company that has entered into a partnering arrangement with TAB NZ in accordance with section 54(4) of the Racing Industry Act 2020:
amend regulations 6AB, 7A, and 15 to provide Entain New Zealand Limited with the same exemptions that TAB NZ currently has from requirements in the Act relating to certain cash transactions and vouchers:
adjust regulation 9, which sets out an exemption relating to currency exchange transactions in hotel accommodation and other accommodation, to clarify that the exemption applies where the accommodation provider only undertakes currency exchange transactions (or a series of related currency exchange transactions) that do not exceed $1,000:
adjust regulation 15, which sets out an exemption in relating to relevant services provided in respect of certain stored value instruments, to clarify when the exemption does not apply in relation to those instruments:
adjust regulation 22, which sets out an exemption relating to debt collection services, to clarify that the exemption applies in relation to unpaid debt:
revoke regulation 24, which exempts relevant services provided in respect of trust accounts or client funds accounts from sections 11(1)(b) and 16(1)(b) of the Act:
extend the exemption set out in regulation 24AA from specified provisions of the Act to court-appointed liquidators under the Limited Partnerships Act 2008:
insert new regulation 24AAB, which provides a new exemption from specified provisions of the Act for non-court-appointed liquidators:
extend the exemption set out in regulation 24AC so that it applies to relevant services provided to a person who is subject to requirements imposed by the chief executive of the New Zealand Customs Service under section 252 of the Customs and Excise Act 2018 and their associates:
insert new regulation 24AF, which provides a new exemption from all provisions of the Act in respect of relevant services provided by a company that is a corporate trustee or a nominee company that is subsidiary of a reporting entity in New Zealand:
insert new regulation 24AG, which provides a new exemption from all provisions of the Act in relation to relevant services provided by a Crown entity where the Crown entity’s AML/CFT supervisor has assessed the Crown entity’s level of risk of money laundering and financing of terrorism to be low:
insert new regulation 24AH, which provides a new exemption from all provisions of the Act (except subpart 2 of Part 2) in respect of certain loans made by a charitable entity.
Part 2 amends the principal regulations to—
adjust regulation 6A, which exempts certain entities from reporting under section 48A of the Act, to clarify that the exemption does not apply in relation to an operator of a money or value transfer service unless the operator is a registered bank:
revoke regulation 8, which exempts certain transactions that are not occasional transactions from section 49(2)(d) of the Act:
revoke regulation 10, which exempts relevant services provided in respect of certain remittance card facilities from specified provisions of the Act.
Part 3 amends the principal regulations to insert new regulation 9A, which provides a new exemption that exempts certain transactions between buyers or sellers and the provider of an online marketplace from specified provisions of the Act.
Regulatory impact statement
The Ministry of Justice produced a regulatory impact statement on 12 October 2022 to help inform the decisions taken by the Government relating to the contents of this instrument.
A copy of this regulatory impact statement can be found at—
Date of notification in Gazette: 29 June 2023.
These regulations are administered by the Ministry of Justice.
Versions
Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Amendment Regulations 2023
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