Changes to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 came into effect this month.
With a shift from just a warning to prosecution, it’s imperative businesses across New Zealand are aware of the impact.
The Act has extended its obligations to the legal, real estate, sports betting and high-value goods industries – that includes jewellery, precious metals, precious stones, watches, motor vehicles, boats, art or antiques where cash payments of $15,000 or more are taken.
In summary, each reporting entity will need to undertake a risk assessment of the potential for the business to be exposed to money laundering and financing of terrorism activities.
An effective AML/CFT Programme must be in place highlighting procedures to detect, deter, manage, and mitigate the possibility of money laundering taking place.
A Compliance Officer must be appointed to administer and maintain your AML/CFT programme. This is perhaps one of the most important aspects of the system, since the Compliance Officer will become personally liable for any breaches of the Act - the penalties for which can be up to $200,000 per breach.
Customer Due Diligence processes need to be undertaken, to include customer identification and identity verification, along with reporting of any suspicious transactions or activity.
An Annual Report also needs to be filed with your supervisor - the Reserve Bank of New Zealand, the Financial Markets Authority, or the Department of Internal Affairs - highlighting the business’ activities and measures that are in place.
If you’d like more information, download Bartercard’s free eBook, which covers everything you need to know, at: http://content.bartercard.co.nz/anti-money-laundering-act-ebook