AML/CFT guidance and publications

Table of contents of information found on this page


Sector Risk Assessment

One of the statutory functions of an AML/CFT supervisor is to assess the level of risk of money laundering and terrorism financing across all the reporting entities it supervises.

The Reserve Bank published its Sector Risk Assessment in April 2017.

More information on Sector Risk Assessment


Annual Reports

The AML/CFT Act requires all reporting entities to prepare an annual report.

The Bank has nominated 30 August 2019 as the due date for submitting an annual AML/CFT report. Reporting entities supervised by the Reserve Bank are required to provide an annual report to us by midday on Friday 30 August 2019 in respect of the period 1 July 2018 to 30 June 2019.

We recommend you open the blank copy of the template form and save it to your computer. You should start entering data in your saved form when you have the data available.

Forms are required to be returned to the Reserve Bank in typed PDF format, using the secure upload facility.

Do not upload handwritten or scanned/signed forms. Your unique code should appear on the last page, in lieu of a signature.

The Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Amendment Regulations prescribe the form and content of the annual report. The regulations were updated in 2016.

The AML/CFT supervisors published a User Guide to Annual AML/CFT Reports in May 2016 to assist reporting entities when completing their annual reports.


Codes of Practice

Under the AML/CFT Act, supervisors are empowered to develop Codes of Practice Containing suggested methods that reporting entities can use to comply with their regulatory obligations. While not mandatory, they can provide a defence against charges of non-compliance (a "safe-harbour"), if followed correctly. Codes of Practice relevant to the firms supervised by the RBNZ will appear here.

Amended Identity Verification Code of Practice 2013

On 10 October 2013 an Amended Identity Verification Code of Practice was gazetted under section 64 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act). The amendments come into force on 1 November 2013.

The Identity Verification Code of Practice Explanatory Note, published in December 2017, clarifies requirements for electronic identity verification in accordance with the Amended Identity Verification Code of Practice 2013.

This December 2017 update replaces the previous version that was published in 2013.

Complying with a code of practice is not mandatory, although it constitutes a safe harbour. If a reporting entity fully complies with the Code it is deemed to be compliant with the relevant parts of the AML/CFT Act. If a reporting entity opts out of the Code, it must inform its supervisor and must adopt practices that are equally effective, otherwise it risks non-compliance.


Guidelines

Supervisors are also empowered to develop guidelines and other guidance aimed at helping reporting entities meet their obligations.

The purpose of this guideline is to help reporting entities understand the process of an Anti-Money Laundering/Countering Financing of Terrorism on-site visit conducted by the Reserve Bank of New Zealand. It provides details on the planning stage, pre-visit requests, the actual on-site and the structure and timeframes of the on-site report to be issued to a reporting entity.

Read the on-site visit guidelines for RBNZ reporting entities (PDF 671KB)

A risk assessment is the first step that a reporting entity must take before developing a programme to address money laundering and terrorism financing risks. It involves identifying and assessing the risks a business might reasonably expect to face. The Risk assessment guideline is designed to help reporting entities conduct a risk assessment, as required under section 58 of the AML/CFT Act. Once a risk assessment is completed, a reporting entity must then put in place an AML/CFT programme that manages and mitigates these risks.

Developing an AML/CFT programme is the next step after conducting a risk assessment. It involves developing the procedures, policies and controls to manage and mitigate money laundering and terrorism financing risks. A reporting entities AML/CFT programme must be based on their risk assessment. This guideline is designed to help reporting entities develop their AML/CFT programme as required under section 56 of the AML/CFT Act.

The Enhanced Customer Due Diligence Guidance, updated in March 2019, is designed to assist reporting entities to understand their EDD requirements under the AML/CFT Act.

The Ordinary Course of Business Guideline, published in December 2017, helps clarify the meaning of the phrase "in the ordinary course of business", as found in the AML/CFT Act. The guideline, and the meaning of this phrase, is important if your business carries on an activity that is listed under the definition of 'financial institution' in the Act.

This December 2017 update replaces the previous version that was published in 2012.

This guideline provides information relating to the carrying on of financial activities by businesses both within and outside New Zealand. The Territoriality guideline, published December 2012, is designed to assist such businesses to determine whether they are reporting entities under the AML/CFT Act.

The Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 exempt certain relevant services from the AML/CFT Act or parts of the Act. The Insurance Business Coverage guideline, published February 2012, helps clarify some exemptions available in these regulations as they apply to insurance.

You are required to assess the AML/CFT risks associated with the countries you deal with. For example, this may be necessary when you deal with a non-resident customer, or an overseas institution. The Countries assessment guideline, published July 2012, will help you decide when you need to undertake an assessment and how to approach an assessment.

This guideline provides an overview of matters to consider when arranging an audit, as required under section 59(2) of the AML/CFT Act. The Guideline for audits of risk assessments and AML/CFT programmes, published December 2012, will help reporting entities manage the requirement to audit AML/CFT risk assessment and AML/CFT programmes.

The Designated Business Group - Scope Guideline outlines the obligations that may be shared by members of a designated business group.

The Designated Business Group – Formation Guideline highlights the eligibility criteria and election process when forming or joining a designated business group. It also explains the process for notifying an AML/CFT supervisor about the formation of, or change to, a designated business group and provides the forms for doing so.

These December 2017 updates replace the previous versions that were published in 2012.

The Beneficial ownership guideline, published December 2012, provides information to assist in the identification and verification of a customer's beneficial owners. The guideline also provides information to help reporting entities understand the distinction between a beneficial owner and a person acting on behalf of a customer.

Fact sheets on beneficial ownership and customer due diligence are available for these customer types:

The Ministry of Justice has published a class exemption for managing intermediaries on its website.

This guideline clarifies the types of transactions that are wire transfers for the purposes of the AML/CFT Act. The Wire transfers guideline, published August 2013, also describes who the parties are in a transaction and what responsibilities they have.

The Police Financial Intelligence unit has issued a Suspicious Activity Reporting Guideline to help reporting entities comply with suspicious activity reporting obligations from 1 July 2018.


Newsletters


FIU/ACAMS Conference Slides


Further guidance and information

The NZ Police Financial Intelligence Unit has published a National Money Laundering and Terrorism Financing Risk Assessment (‘NRA’) in March 2018. The NRA sets out the current understanding of the national-level risks of illicit financing in New Zealand.

The NZ Police Financial Intelligence Unit also publishes Quarterly Typology Reports. The purpose of these reports is to provide a picture of current, emerging and longer-term AML/CFT risk factors.

Following the Christchurch terrorist attacks on 15 March, New Zealand’s national threat level has been high. Police are maintaining strong preventative measures in relation to any copycat or retaliation incidents rather than a specific threat.