Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698846518740.pdf (New Zealand)
2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Pursuant to section 157(1) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, the Associate Minister of Justice gives the following notice,— (a) (b) having had regard to the matters specified in section 157(3) of that Act; and having consulted in accordance with section 158 of that Act.
Contents Title Commencement Application Class exemptions Revocations Schedule Class exemptions Notice Page 1 1 1 2 2 2 Title This notice is the Anti-Money Laundering and Countering Financing of Terror- ism (Class Exemptions) Notice 2018.

Commencement This notice comes into force on 30 June 2018.

Application (1) A class exemption applies on and from the date specified in the Part of the Schedule setting out the particulars of that class exemption.
(2) A class exemption expires on the date specified in the Part of the Schedule set- ting out the particulars of that class exemption and that Part is revoked on that date.

1 cl 4 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 4 Class exemptions The class exemptions granted under section 157(1) of the Anti-Money Laun- dering and Countering Financing of Terrorism Act 2009 are set out in the Schedule.
5 Revocations The following legislative instruments are revoked: (a) Anti-Money Laundering and Countering Financing of Terrorism (Publi- cation of Class Exemption) Notice 2013 (LI 2014/63): (b) Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2014 (LI 2014/142): (c) Anti-Money Laundering and Countering Financing of Terrorism (Desig- nated Issuers of Debt Securities Class Exemption) Notice 2018 (LI 2018/11).
Schedule Class exemptions cl 4 Part 1 Bodies corporate and body corporate managers As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt all bodies corporate, created under the Unit Titles Act 2010 (the UT Act) or created under the Unit Titles Act 1972 and continued under the UT Act, from all the provisions of the Act in relation to any relevant services pro- vided in carrying out any management, financial, or administrative functions relating to the body corporate and the unit title development in accordance with the UT Act or the Unit Titles Regulations 2011 (the UT Regulations).
I also exempt any persons contracted or otherwise engaged by a body corporate as a body corporate manager or body corporate secretary (collectively referred to as body corporate managers) from sections 10 to 71 of the Act in relation to any relevant services provided whilst carrying out management, financial, or administrative functions and services on behalf of a body corporate.

This in- cludes lawyers and accountants carrying out these services.
The scope of this exemption for body corporate managers covers only those functions and ser- vices that a body corporate would otherwise provide to its constituent owners in accordance with the UT Act or the UT Regulations.

The exemption provided to bodies corporate in clause 1 is not subject to any conditions.
1 2 3 2 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule 4 The exemption provided to body corporate managers in clause 2 is made sub- ject to the following condition: a body corporate manager, in carrying out any functions and services on behalf of a body corporate, must adhere to all duties and other requirements contained in the UT Act, the UT Regulations, and any other relevant legislation as if the body corporate manager were acting as the body corporate itself.
5 These exemptions have been made for the following reasons: (a) (b) (c) (d) (e) (f) the risk of money laundering or the financing of terrorism is low: funds paid to bodies corporate or body corporate managers are only pay- able by unit owners of bodies corporate: funds are not accepted from any other parties (unless it is clear that such parties are acting as a unit owner’s agent, such as a lawyer or an ac- countant paying on instructions from their client): funds are payable on levies struck during a financial year or (in the case of body corporate managers) on the supply of an invoice showing levies struck by the body corporate for the financial year: the levies struck are intended to cover the costs of insurance and other outgoings for that year, and, if further funds are required during the year, additional levies are struck by the body corporate: payments are made by direct credit to either the body corporate or body corporate manager and, on receipt, funds are held in specific accounts as required by the UT Act: (g) where a body corporate has instructed a lawyer to receive payments from unit owners, or where a unit owner’s mortgagee requires funds ad- vanced to the owner to meet levies to be paid into a lawyer’s trust ac- count under an escrow arrangement, those funds are held in the lawyer’s trust account on receipt: (h) where the amount levied is in excess of the amount required for the year’s outgoings, the surplus is usually credited to a long-term mainten- ance fund or offset against the next year’s levies: (i) (j) individual unit owners have no control or ability to move money once it is received by the body corporate or body corporate manager: there is no automatic right of withdrawal or ability to use funds once lev- ies are paid.
Any surplus at the end of the financial year is usually mini- mal, and those amounts are not usually returned to unit owners, but re- tained in the manner set out above.

6 7 This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
3 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 Part 2 Public Trust, Māori Trustee, and trustee companies 1 As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt Public Trust, the Māori Trustee, and each trustee company within the meaning of the Trustee Companies Act 1967 (collectively referred to as the statutory trustee corporations) in respect of the classes of transactions listed at clause 2 below from the following provisions of the Act: (a) (b) (c) sections 5 to 38; and sections 50 to 91; and sections 106 to 115.
2 The exemption applies to— (a) the statutory trustee corporations in respect of the following personal trust services: (i) (ii) (iii) (iv) (v) acting as an agent to reseal overseas probate or letters of adminis- tration in New Zealand: acting as a property manager under the Protection of Personal and Property Rights Act 1988: acting as a court-appointed trustee, agent, or receiver: acting as a guardian for a minor as required by court order: acting as a trustee of a funeral trust that does not provide for any cooling-off period or for the ability to withdraw funds prior to the settlor’s or testator’s death: (vi) drafting any will, power of attorney, or trust documentation where required to do so by court order or by operation of statute: (vii) acting as a property attorney under an enduring power of attorney where required to do so by court order or by operation of statute: (b) Public Trust in respect of the personal trust service of being appointed to act as trustee, agent, manager, or receiver by operation of statute (for ex- ample, having money paid to Public Trust pursuant to the Local Govern- ment (Rating) Act 2002): (c) the Māori Trustee in respect of the following personal trust services: (i) (ii) acting as statutory trustee in respect of Māori land: acting as a trustee, agent, or other fiduciary for Māori, or in re- spect of any Māori land or other interests, in the exercise or per- formance of its duties, functions, and powers by operation of stat- ute.
In this exemption, personal trust services— 3 4 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (a) means services provided by the statutory trustee corporations in a fidu- ciary capacity to individuals or the groups listed in clause 2; but (b) excludes any services provided by the statutory trustee corporations in their capacities as trustees or supervisors in respect of an issue of secur- ities to the public or activities related to the issue of securities.
This exemption is not subject to any conditions.
This exemption has been made for the following reasons: (a) there is a low risk of money laundering or terrorism financing through the statutory trustee corporations when they are providing personal trust services, because— (i) (ii) (iii) the statutory trustee corporations operate within a heavily regu- lated environment that includes requirements to provide services by court order or by operation of statute; and the court, when requiring the statutory trustee corporations to pro- vide services by court order, subjects the engagement of services to a unique supervisory element; and the continued imposition of suspicious activity reporting obliga- tions will adequately address the risk of money laundering and terrorism financing in the circumstances; and (b) the obligations imposed on the statutory trustee corporations would be disproportionate given the low risk of money laundering or terrorism fi- nancing in the circumstances outlined in this exemption.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.

Part 3 Services provided in relation to certain retirement schemes As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt the manager of a specified retirement scheme from sections 10 to 71 of the Act in relation to services provided in respect of the specified retirement scheme.
4 5 6 7 1 2 For the purposes of this ministerial exemption,— manager has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013 regular leave of absence contributions means contributions made other than through payroll by a member to the retirement scheme during a permitted period of unpaid leave of absence retirement scheme has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013 5 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 specified retirement scheme means— (a) a retirement scheme in respect of which the provision of relevant ser- vices would be exempt from the Act pursuant to regulation 20A of the Anti-Money Laundering and Countering Financing of Terrorism (Ex- emptions) Regulations 2011 but for the fact that the retirement scheme allows— (i) (ii) transfers from equivalent overseas retirement schemes (as de- scribed in regulation 82(3) of the Financial Markets Conduct Regulations 2014) and other retirement schemes that are not superannuation schemes and so does not comply with paragraph (b)(ii) of the definition of limited employer superannuation scheme in regulation 20A(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011: regular leave of absence contributions and so does not comply with paragraph (d) of the definition of limited employer super- annuation scheme in regulation 20A(2) of the Anti-Money Laun- dering and Countering Financing of
 Terrorism (Exemptions) Regulations 2011; and (b) the following retirement schemes on and after 30 June 2018: (i) (NMLA) New Zealand Superannuation Scheme AMP (SCH11057): (ii) BP New Zealand Retirement Plan (SCH11078): (iii) Dairy Industry Superannuation Scheme (SCH10871): (iv) Defence Force Superannuation Scheme (SCH11069): (v) Employee Retirement Plan (SCH11190): (vi) MISS Scheme (SCH10889): (vii) Opus Downer Retirement Scheme (SCH11472): (viii) New Zealand Steel Pension Fund (SCH10529): (ix) Ports Retirement
 Plan (SCH10801): (x) UniSaver New Zealand (SCH10656); and (c) the following retirement schemes on and after 1 July 2020: (i) Fletcher Building Retirement Plan (SCH10825): (ii) Maritime KiwiSaver Scheme (SCH10500): (iii) Maritime Retirement Scheme (SCH10493); and (d) the following retirement schemes on and after 1 December 2022: (i) (ii) Baptist Union Superannuation Scheme (SCH11086): The New Zealand Anglican Church Pension Fund (SCH10835): 6 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (iii) The Presbyterian Church of Aotearoa New Zealand Beneficiary Fund (SCH11511): (iv) The Supernumerary Fund of the Methodist Church of New Zea- land (SCH10904) specified voluntary contributions means voluntary contributions to the retire- ment scheme that are either— (a) (b) regular leave of absence contributions; or for the purpose of purchasing additional pensionable service or restoring pensionable service sponsor means, in respect of a retirement scheme that is not an employer superannuation scheme (as defined in regulation 20A(2) of the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011), an entity which remits contributions to the scheme through payroll through payroll means, for the purposes of this exemption, by way of deduc- tion from the salary, wages or other remuneration payable by an employer or a sponsor voluntary contributions means— (a) (b) specified voluntary contributions: voluntary contributions that are not specified voluntary contributions but that are permitted by the trust deed and that are made in accordance with clause 4.
This exemption is made subject to the conditions set out in clauses 4 to 10.

Voluntary contributions that are made other than through payroll to a section of the retirement scheme that is subject to restrictions set out in the complying fund rules (as defined in section YA 1 of the Income Tax Act 2007) must be subject to a cap on the amount of those non-payroll voluntary contributions in a year beginning on 1 July and ending on 30 June.
The cap must be set at the amount (after taking into account any other contribution made to that section through payroll) required to enable a member to maximise, in respect of the relevant year, those government contributions set out in section MK 4 of the Income Tax Act 2007.

Specified voluntary contributions other than through payroll for the purpose of purchasing additional pensionable service must be subject to enhanced custom- er due diligence.
Specified voluntary contributions other than through payroll for the purpose of restoring pensionable service must be subject to standard customer due dili- gence.
Regular leave of absence contributions must— Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 8 9 (a) (b) be collected by the employer or sponsor, or by a related company (as de- fined in the Companies Act 1993) on behalf of the employer or sponsor, or by the retirement scheme’s administration manager; and not exceed (as to either amount or frequency) the contributions that were being paid by the relevant member immediately prior to the member commencing leave of absence.
If any withdrawals are made by a member in addition to that member making regular leave of absence contributions during the permitted period of unpaid leave of absence, the following sections of the Act apply to those withdrawals and contributions: (a) (b) (c) (d) sections 10 to 17 (and, for the purposes of section 14(1)(d), the first withdrawal is specified as a circumstance in which standard customer due diligence must be conducted); and sections 39A to 48; and sections 48A to 48C; and section 49.
A retirement scheme covered by paragraph (a)(i) of the definition of specified retirement scheme in clause 2 cannot, in practice, accept any transfers from international sources other than Australian superannuation transfers.
If, in the case of a retirement scheme covered by paragraph (a)(ii), (b), (c), or (d) of that definition, any transfers are made from international sources, with the excep- tion of Australian superannuation transfers, the following sections of the Act apply to those transfers: (a) (b) (c) (d) sections 10 to 36; and sections 39A to 48; and sections 48A to 48C; and section 49.
10 If any regular leave of absence contributions are received from international sources during the permitted period of unpaid leave of absence, the following sections of the Act apply to those contributions: (a) (b) (c) (d) sections 10 to 17 (and, for the purposes of section 14(1)(d), the receipt of a contribution from an international source is specified as a circumstance in which standard customer due diligence must be conducted); and sections 39A to 48; and sections 48A to 48C; and section 49.
11 The exemption has been made for the following reasons: (a) the specified retirement schemes pose a low risk of money laundering or terrorism financing; and 8 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (b) (c) (d) any risks posed by voluntary contributions outside of payroll, transfers from international sources, and withdrawals have been addressed by the conditions; and due to the low money laundering and terrorism financing risks raised by the specified retirement schemes and the significant compliance costs that would arise from not granting this exemption, I consider that any benefits of requiring compliance with the Act are not justified by the as- sociated costs; and this exemption is consistent with (and has no effect on the purpose or in- tent of) the Act, the Financial Transactions Reporting Act 1996, and New Zealand’s international obligations as a member of the Financial Action Task Force and the Asia/Pacific Group on Money Laundering.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.

Part 4 PAYE intermediaries As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt all PAYE intermediaries, only with respect to authorised transactions, from the following provisions of the Act: 12 13 1 (a) (b) (c) (d) sections 11 to 39: section 49: sections 50 to 71: sections 106 to 115.
2 In this exemption,— authorised transaction means any transaction that satisfies the requirements of section RP 2(2), RP 6, RP 14, RP 15, or RP 16 of the Income Tax Act 2007 or that fulfils the obligations of a PAYE intermediary under any of those provi- sions PAYE intermediary means a person who is approved as a PAYE intermediary under section 15D of the Tax Administration Act 1994 (and includes a PAYE intermediary who is approved as a listed PAYE intermediary under section 15G of that Act).
3 This exemption is made subject to the following conditions: (a) the exemption applies only to transfers between New Zealand bank ac- counts and does not extend to any transfer from or to a foreign bank ac- count: 9 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 (b) to be eligible for the exemption, a PAYE intermediary must not use or provide any payroll remittance card in the course of its authorised activ- ities.
4 This exemption has been made for the following reasons: (a) the risk of money laundering or terrorist financing through the author- ised transactions conducted by PAYE intermediaries is low because— (i) (ii) PAYE intermediaries must be registered with the Inland Revenue Department: PAYE intermediaries are regulated by requirements under the In- come Tax Act 2007 and the Tax Administration Act 1994: (iii) PAYE intermediaries rely on information provided by the Inland Revenue Department in relation to employees: (iv) (v) (vi) PAYE intermediaries must provide an employer schedule to the Inland Revenue Commissioner on a monthly basis: PAYE intermediaries must submit information to the Inland Reve- nue Department in a format that is acceptable to the Inland Reve- nue Department and that identifies all parties to any wire transfer: the tasks performed by PAYE intermediaries in the manipulation and transfer of funds are limited to the deduction and transfer of income tax and other specific deductions: (vii) any risks present within the authorised transactions conducted by PAYE intermediaries are dealt with by the conditions of the ex- emption: (b) any benefits of requiring compliance with the Act are not justified given the associated costs owing to the low money laundering and terrorism fi- nancing risks raised by the authorised transactions conducted by PAYE intermediaries and the significant compliance costs that would arise in the absence of this exemption.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
Part 5 Reporting entities whose customers are licensed managing intermediaries As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt those reporting entities whose customers include licensed managing intermediaries and LMI customers from carrying out the following require- ments in respect of those customers: 5 6 1 10 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (a) (b) the requirement to conduct standard customer due diligence under sec- tions 14 to 17 of the Act: the requirement, in any circumstances where the reporting entity is re- quired to conduct enhanced customer due diligence, to carry out the identification and verification requirements under sections 23 and 24(1) of the Act on any beneficial owner of the customer: (c) the requirement to conduct enhanced customer due diligence, under sec- tions 23 to 25 of the Act, in circumstances where— (i) (ii) the customer is a trust; and the reporting entity is only required to conduct enhanced customer due diligence because section 22(1)(a)(i) or (b)(i) of the Act ap- plies.
2 In this exemption,— licensed managing intermediary means any of the following: (a) (b) (c) (d) (e) an NBDT (as defined in section 5 of the Non-bank Deposit Takers Act 2013) holding an NBDT licence granted under section 17 of that Act: a registered scheme (as defined in section 6(1) of the Financial Markets Conduct Act 2013): a person who holds, or is authorised to provide services under, a licence under Part 6 of the Financial Markets Conduct Act 2013: a supervisor or statutory supervisor holding a licence under section 10 of the Financial Markets Supervisors Act 2011: an FMA appointee (as defined in sections 22(2) and 37(1) of the Finan- cial Markets Supervisors Act 2011) LMI customer means a person— (a) (b) (c) that is a customer of a licensed managing intermediary; and on whose behalf a transaction is conducted by the licensed managing intermediary giving instructions to the reporting entity (whether alone or together with the person); and to whom the reporting entity provides a facility in the name of the per- son for the purposes of acting on those instructions.
3 In respect of a customer that is a licensed managing intermediary, this exemp- tion is made subject to the following conditions: (a) (b) the reporting entity must conduct simplified customer due diligence on the licensed managing intermediary in respect of which the exemption is relied on; and the reporting entity must, in any circumstances where the reporting enti- ty is required to conduct enhanced customer due diligence on a customer in respect of which the exemption is relied on, carry out the identifica- 11 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 tion and verification requirements under sections 23 and 24(1) of the Act on those beneficial owners of the customer that have effective control, or own more than 25%, of the customer; and the reporting entity must conduct enhanced customer due diligence on a customer in accordance with section 22A(2) of the Act if the customer conducts a transaction to which section 22A of the Act applies; and the reporting entity must take reasonable steps to verify that a customer in respect of which this exemption is relied on is a licensed managing intermediary (for example, by checking a register kept by the Registrar of Financial Service Providers); and the reporting entity must comply with any request from its AML/CFT supervisor for the name of 1 or more customers in respect of which the exemption is relied on.
(c) (d) (e) 4 In respect of an LMI customer, this exemption is made subject to the following conditions: (a) (b) the reporting entity must conduct simplified customer due diligence on a licensed managing intermediary that provides 1 or more financial ser- vices to the LMI customer in connection with the services provided by the reporting entity to the LMI customer, as if the licensed managing intermediary were the customer of the reporting entity in relation to those services; and the reporting entity must conduct enhanced customer due diligence on an LMI customer in accordance with section 22A(2) of the Act if the re- porting entity is instructed to conduct a transaction in respect of an LMI customer to which section 22A of the Act applies; and (c) the reporting entity— (i) must obtain written confirmation, signed by a senior manager of the licensed managing intermediary, that the LMI customer is a customer of the licensed managing intermediary; and (ii) must obtain written confirmation that the licensed managing inter- mediary has undertaken customer due diligence on the LMI cus- tomer as required under the Act; but (iii) is not required to verify a written confirmation obtained under subparagraphs (i) and (ii) unless there are reasonable grounds for the reporting entity to doubt the adequacy or veracity of the writ- ten confirmation; and (d) the reporting entity must comply with any requests from its AML/CFT supervisors for the name of 1 or more LMI customers in respect of which the exemption is relied on.
5 This exemption has been made for the following reasons: 12 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule 6 7 1 (a) (b) (c) there is a low risk of money laundering or terrorism financing in respect of transactions relating to licensed managing intermediaries and LMI customers because licensed managing intermediaries operate within a heavily regulated environment; and the requirement for a reporting entity to conduct standard customer due diligence on a licensed managing intermediary or an LMI customer may lead to duplication of customer due diligence obligations; and the requirement for a reporting entity to conduct customer due diligence on all beneficial owners of a licensed managing intermediary— (i) (ii) has associated costs, may give rise to privacy concerns, and may deter international investment; and is out of proportion to the risk of money laundering and terrorism financing posed by licensed managing intermediaries.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
Part 6 Reporting entities whose customers are specified managing intermediaries As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt those reporting entities whose customers include specified managing intermediaries and SMI customers from carrying out the following require- ments in respect of those customers: (a) (b) the requirement to conduct customer due diligence, under section 11(1)(b) of the Act, on any beneficial owner of a customer: the requirement, in any circumstances where the reporting entity is re- quired to conduct enhanced customer due diligence, to carry out the identification and verification requirements under sections 23 and 24(1) of the Act on any beneficial owner of the customer: (c) the requirement to conduct enhanced customer due diligence, under sec- tions 23 to 25 of the Act, in circumstances where— (i) (ii) the customer is a trust; and the reporting entity is only required to conduct enhanced customer due diligence because section 22(1)(a)(i) or (b)(i) of the Act ap- plies.
2 In this exemption,— foreign financial institution means a financial institution that— 13 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 (a) has its principal place of business in an overseas jurisdiction with suffi- cient AML/CFT systems and measures in place; and (b) is supervised for AML/CFT purposes licensed managing intermediary means any of the following: (a) (b) (c) (d) (e) an NBDT (as defined in section 5 of the Non-bank Deposit Takers Act 2013) holding an NBDT licence granted under section 17 of that Act: a registered scheme (as defined in section 6(1) of the Financial Markets Conduct Act 2013): a person who holds, or is authorised to provide services under, a licence under Part 6 of the Financial Markets Conduct Act 2013: a supervisor or statutory supervisor holding a licence under section 10 of the Financial Markets Supervisors Act 2011: an FMA appointee (as defined in sections 22(2) and 37(1) of the Finan- cial Markets Supervisors Act 2011) managed investment scheme has the same meaning as in section 9 of the Fi- nancial Markets Conduct Act 2013 manager has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013 senior manager means,— (a) (b) (c) in relation to a financial institution to which the Act applies, a senior manager to whom a reporting entity’s AML/CFT compliance officer must report under section 56(4) of the Act: in relation to a foreign financial institution, a person holding a compar- able position to
 a senior manager (as defined in paragraph (a)): in relation to a managed investment scheme, a senior manager (as de- fined in paragraph (a) or (b)) of the specified managing intermediary that is the manager, or a trustee, of that scheme SMI customer means a person— (a) (b) (c) that is a customer of a specified managing intermediary; and on whose behalf a transaction is conducted by the specified managing intermediary giving instructions to the reporting entity (whether alone or together with the person);
 and to whom the reporting entity provides a facility in the name of the per- son for the purpose of acting on those instructions specified managing intermediary— (a) means any of the following: (i) (ii) a financial institution to which the Act applies: a foreign financial institution: 14 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (iii) a managed investment scheme, the manager or a trustee of which is a person described in subparagraph (i) or (ii); but (b) excludes a licensed managing intermediary.
3 In respect of a customer that is a specified managing intermediary, this exemp- tion is made subject to the following conditions: (a) (b) clause (1)(a) and (b) must not be relied on in respect of a beneficial own- er that has effective control, or owns more than 25%, of the customer; and the reporting entity must conduct enhanced customer due diligence on the customer in accordance with section 22A(2) of the Act if the custom- er conducts a transaction to which section 22A of the Act applies; and (c) the reporting entity— (i) must obtain written confirmation, signed by a senior manager of the customer, to the effect that the customer (or, if the customer is a managed investment scheme, the specified managing intermedi- ary that is the manager or a trustee of that scheme)— (A) (B) (C) (D) has an AML/CFT programme (or a foreign equivalent); and has its principal place of business in a jurisdiction with suf- ficient AML/CFT systems and measures in place; and is supervised for AML/CFT purposes; and is conducting customer due diligence in accordance with the Act (or its foreign equivalent); but (ii) is not required to verify a written confirmation obtained under subparagraph (i) unless there are reasonable grounds for the re- porting entity to doubt the adequacy or veracity of the written confirmation; and (d) the reporting entity must comply with any request from its AML/CFT supervisor for the name of 1 or more customers in respect of which the exemption is relied on.
4 In respect of an SMI customer, this exemption is made subject to the following conditions: (a) (b) clause (1)(a) and (b) may not be relied on in respect of an SMI customer that has effective control, or owns more than 25%, of the specified man- aging intermediary; and the reporting entity must conduct enhanced due diligence on an SMI customer in accordance with section 22A(2) of the Act if the SMI cus- tomer conducts a transaction to which section 22A of the Act applies; and (c) the reporting entity— 15 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 (i) must obtain written confirmation, signed by a senior manager of the specified managing intermediary, to the effect that the speci- fied managing intermediary— (A) (B) (C) (D) has an AML/CFT programme (or foreign equivalent); and has its principal place of business in a jurisdiction with suf- ficient AML/CFT systems and measures in place; and is supervised for AML/CFT purposes; and is conducting customer due diligence in accordance with the Act (or its foreign equivalent); but (ii) is not required to verify a written confirmation obtained under subparagraph (i) unless there are reasonable grounds for the re- porting entity to doubt the adequacy or veracity of the written confirmation; and (d) the reporting entity must comply with any request from its AML/CFT supervisor for the name of 1 or more SMI customers in respect of which the exemption is relied on.
This exemption has been granted because the requirement for a reporting entity to conduct customer due diligence on all beneficial owners of a specified man- aging intermediary or on all SMI customers— (a) may lead to duplication of customer due diligence obligations; and (b) (c) has associated costs, may give rise to privacy concerns, and may deter international investment; and is out of proportion to the risk of money laundering and terrorism finan- cing posed.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
Part 7 Shared compliance officer for members of a designated business group As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt reporting entities that are members of the same designated business group, or are in the process of electing to become members of the same desig- nated business group, from the following provisions of the Act: (a) (b) section 56(2); and section 56(4).
For the purposes of this exemption, the process of electing to become members of the same designated business group means the process by which a group of 5 6 7 1 2 16 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule 2 or more persons that are eligible to be members of the same designated busi- ness group have decided to become members and is concluded by providing a form in writing to the AML/CFT supervisor in accordance with regulation 6 of the Anti-Money Laundering and Countering Financing of Terrorism (Defini- tions) Regulations 2011.
This exemption may be relied upon by reporting entities that are eligible to be members of the same designated business group (as defined in the Act).

The exemption may also be relied upon by an entity incorporated and resident in Australia that is subject to AML/CFT requirements in New Zealand in re- spect of its New Zealand activities.
This exemption is made subject to the following conditions: (a) (b) (c) (d) (e) a reporting entity must appoint an employee of a member of the designa- ted business group to act as their compliance officer under the Act (the shared compliance officer); and if the designated business group does not have employees, the reporting entity must appoint a person to act as the shared compliance officer for the designated business group; and the shared compliance officer must be domiciled in either New Zealand or Australia; and the shared compliance officer must administer and maintain the AML/CFT programmes of each member of the designated business group that is a reporting entity and has appointed the shared compliance officer; and the shared compliance officer must report to a senior manager of each member of the designated business group that has appointed the shared compliance officer.
The exemption has been granted for the following reason: allowing members of a designated business group to share a compliance officer is consistent with the policy principle of reducing regulatory burden (where possible and in the circumstances where it is appropriate to do so).

This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
Part 8 Financial advisers arranging for relevant services to be provided for retirement schemes 1 As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt all financial advisers who arrange for a manager of a retirement 17 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 scheme to provide relevant services to a customer or an intended customer of the retirement scheme from sections 10 to 71 of the Act.
2 For the purposes of this exemption,— DIMS licensee has the same meaning as in section 392 of the Financial Mar- kets Conduct Act 2013 financial adviser has the same meaning as in section 8 of the Financial Advis- ers Act 2008 financial adviser service has the same meaning as in section 9 of the Financial Advisers Act 2008 financial product has the same meaning as in section 5 of the Financial Advis- ers Act 2008 investment-linked contract of insurance has the same meaning as in regula- tion 5 of the Financial Advisers (Definitions, Voluntary Authorisation, Pre- scribed Entities, and Exemptions) Regulations 2011 managed investment product has the same meaning as in section 8(3) of the Financial Markets Conduct Act 2013 manager has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013 and, for the purposes of this exemption, includes any author- ised body of the manager as that term is defined in section 6(1) of the Financial Markets Conduct Act 2013 relevant service has the same meaning as in regulation 4 of the Anti-Money Laundering and Countering Financing of Terrorism (Definitions) Regulations 2011 retirement scheme has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013 and, for the purposes of this exemption, excludes a Schedule 3 scheme (as defined in section 6(1) of the Financial Markets Con- duct Act 2013).
3 This exemption does not apply to financial advisers to the extent that they pro- vide a financial adviser service in respect of any of the following: (a) (b) (c) (d) a financial product (other than a managed investment product that is an interest in a retirement scheme): a discretionary investment management service supplied by a DIMS li- censee or by an authorised financial adviser who is authorised to provide that service under the Financial Advisers Act 2008: an investment-linked contract of insurance: a renewal or variation of the terms and conditions of any product speci- fied in paragraphs (a) to (c).
4 This exemption is made subject to the following conditions: 18 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (a) (b) the relevant financial adviser has reasonable cause to believe the manag- er of the relevant retirement scheme is compliant with its obligations under the Act; and the relevant financial adviser must, for the purposes of section 34 of the Act, act as an agent of the manager of the relevant retirement scheme, and agree to carry out, and carry out, the following obligations on behalf of the manager: (i) (ii) (iii) (iv) conducting customer due diligence and obtaining and verifying any information required under the Act for each customer or in- tended customer of the retirement scheme introduced by the finan- cial adviser: reporting to the manager any suspicious activities or patterns of activities that the financial adviser becomes aware of in relation to any customer or intended customer introduced to the retirement scheme by the financial adviser: providing transaction records and identity verification records to the manager in a timely manner: ensuring that any employee engaged in AML/CFT-related duties by the financial adviser is appropriately vetted and provided with training on the manager’s obligations under the Act: (v) establishing procedures that are consistent with the manager’s risk assessment and that are compliant with the Act.
5 The exemption has been made for the following reasons: (a) (b) (c) financial advisers act on behalf of retirement scheme managers to under- take anti-money laundering and countering financing of terrorism obli- gations: there is a low risk of money laundering or financing of terrorism in rela- tion to retirement schemes: the exemption reduces the compliance burden for financial advisers that only provide advice on retirement schemes and removes any duplication of costs relating to customer due diligence and transaction reporting that must be carried out by retirement scheme managers in relation to the same customers.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
Part 9 Specified employee security purchase schemes As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), 6 7 1 19 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 I exempt relevant persons from sections 10 to 71 of the Act where relevant per- sons carry out relevant services in respect of a specified employee security pur- chase scheme.
2 For the purposes of this exemption,— eligible person— (a) means an employee or a director of an issuer or of any of its subsidiaries or the issuer’s holding company or any subsidiaries of the issuer’s hold- ing company; and (b) includes a person who provides personal services (other than as an employee) principally to the issuer or any of its subsidiaries or the issu- er’s holding company or any subsidiaries of the issuer’s holding com- pany holding company has the same meaning as in section 5 of the Companies Act 1993 issuer means,— (a) (b) (c) in relation to an equity security, the company, industrial and provident society, building society, or other entity to which the security relates: in relation to a managed investment product, the manager of the man- aged investment scheme to which the product relates: in relation to an option or a right to acquire an equity security or man- aged investment product, the person that is required to either issue or transfer the equity security or managed investment product to the eli- gible person under the terms of the specified employee security purchase scheme managed investment scheme means a managed investment scheme (as de- fined in section 9 of the Financial Markets Conduct Act 2013) relevant person means— (a) every financial institution (as defined in section 5(1) of the Act) that is— (i) (ii) (iii) (iv) a managed investment scheme; or a trustee of a managed investment scheme; or an issuer of the specified security that may be offered under the specified employee security purchase scheme; or a subsidiary or a holding company of the person specified in sub- paragraph (iii), or a subsidiary of the holding company of the per- son specified in subparagraph (iii), that manages or operates the specified employee security purchase scheme; or (v) a manager or a trustee of any trust established for the specified employee security purchase scheme; and 20 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (b) every
 person acting on behalf of, or under an agreement or arrangement with, any or all of the persons specified in paragraph (a)(i) to (v) in re- spect of the specified employee security purchase scheme relevant service means a service provided by a relevant person in the course of carrying out a financial activity in relation to a specified employee security purchase scheme specified employee security purchase scheme means a scheme under which specified securities may be offered to an eligible person specified security means an equity security or a managed investment product (each as defined in section 8(2) and (3) of the Financial Markets Conduct Act 2013) in the entity or managed investment scheme to which it relates, or an op- tion or a right to acquire such an equity security or managed investment prod- uct, that is offered to eligible persons under a specified employee security pur- chase scheme subsidiary has the same meaning as in section 5 of the Companies Act 1993.
This exemption is made subject to the following condition: offers of specified securities must be made as part of remuneration arrangements for the eligible person or otherwise made in connection with the employment or engagement of the eligible person.
The exemption has been made for the following reasons: (a) there is a low risk of money laundering or financing of terrorism associ- ated with specified employee security purchase schemes due to the en- during relationship that the relevant person is likely to have with the eli- gible person, and a range of verifiable identity information is held about eligible persons: (b) the obligations imposed on relevant persons would be disproportionate given the low risk of money laundering and financing of terrorism: (c) money laundering and financing of terrorism risks are further mitigated by the condition that offers of specified securities must be made as part of the remuneration arrangements of eligible persons: (d) the exemption is consistent with the Act and New Zealand’s obligations as a member of the Financial Action Task Force, and there is a low risk of the exemption having an adverse impact on the integrity of, and com- pliance with, the Act.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
3 4 5 6 21 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 Part 10 Specified securities investment schemes 1 As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt relevant persons from sections 10 to 71 of the Act where relevant per- sons carry out relevant services in respect of a specified securities investment scheme.
2 For the purposes of this exemption,— issuer means,— (a) (b) in relation to an equity security, the company, industrial and provident society, building society, or other entity to which the security relates: in relation to a managed investment product, the manager of the man- aged investment scheme to which the product relates managed investment scheme means a managed investment scheme (as de- fined in section 9 of the Financial Markets Conduct Act 2013) relevant person means— (a) every financial institution (as defined in section 5(1) of the Act) that is— (i) (ii) (iii) (iv) a managed investment scheme; or a trustee of a managed investment scheme; or an issuer of the specified securities that are the subject of the spe- cified securities investment scheme; or a manager or a trustee of any trust established for the specified se- curities investment scheme; and (b) every person acting on behalf of, or under an agreement or arrangement with, any or all of the persons specified in paragraph (a)(i) to (iv) for the purposes of the specified securities investment scheme relevant service means a service provided by a relevant person in the course of carrying out a financial activity in relation to a specified securities investment scheme specified investor means a person who holds— (a) (b) a managed investment product (within the meaning of section 8(3) of the Financial Markets Conduct Act 2013) in a managed investment scheme that has the specified securities investment scheme; or an equity security (within the
 meaning of section 8(2) of the Financial Markets Conduct Act 2013) in an issuer that has the specified securities investment scheme specified securities investment scheme means— (a) a dividend or distribution reinvestment scheme established by (or in re- spect of) an issuer under which specified investors may acquire specified 22 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule securities and the purchase of those specified securities is not funded, in whole or in part, by cash; or (b) an investment scheme established by (or in respect of) an issuer under which specified investors may acquire specified securities and the pur- chase of those specified securities is not funded, in whole or in part, by cash specified security means an equity security or a managed investment product (each as defined in section 8(2) and (3) of the Financial Markets Conduct Act 2013) in the entity or managed investment scheme to which it relates that is of- fered to specified investors under a specified securities investment scheme.
3 This exemption is made subject to the following conditions: (a) (b) in the case of a dividend or distribution reinvestment scheme, the speci- fied securities must only be issued to or acquired by specified investors to the extent of their participation in the reinvestment scheme, and where all or a specified part of the net proceeds of the dividends or distribu- tions payable are applied to the purchase of the specified securities: in the case of an investment scheme, the specified securities must only be issued to or acquired by specified investors to the extent of the speci- fied investors’ entitlement under the investment scheme to purchase spe- cified securities by means other than cash payment.
4 The exemption has been made for the following reasons: (a) there is a low risk of money laundering or financing of terrorism associ- ated with specified securities investment schemes because,— (i) under a dividend or distribution reinvestment scheme, a specified investor agrees to forgo a cash dividend or distribution on the spe- cified securities of the issuer, and instead receives specified secur- ities; and (ii) under an investment scheme, a specified investor purchases speci- fied securities by means other than cash payment: (b) the obligations imposed on relevant persons administering the specified securities investment schemes would be disproportionate given the low risk of money laundering and financing of terrorism: (c) money laundering and financing of terrorism risks are further mitigated by the conditions of this exemption, which mean that the specified in- vestor cannot pay cash for the acquisition of specified securities: (d) the exemption is consistent with the Act and New Zealand’s obligations as a member of the Financial Action Task Force, and there is a low risk of the exemption having an adverse impact on the integrity of, and com- pliance with, the Act.
5 This exemption comes into force on 30 June 2018.

23 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 6 This exemption will expire on 30 June 2023.
Part 11 Casino loyalty schemes 1 2 As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt casinos, in relation to their loyalty schemes, cards, or instruments, from the following provisions of the Act: (a) (b) sections 14(1)(a), 22(1)(a), and 26(1); and subject to clause 5 of this notice, section 31.
For the purposes of this exemption, casino loyalty scheme means a scheme operating in a casino that— (a) generates points or credit exclusively through any of the following: (i) (ii) (iii) (iv) gambling: gambling and the purchase of food and beverages: gambling and the purchase of hotel accommodation: gambling and the purchase of food and beverages and hotel ac- commodation; and (b) meets the following criteria: (i) (ii) (iii) (iv) (v) persons cannot deposit funds or credit into a casino loyalty scheme account or other loyalty arrangement or any associated loyalty card or instrument; and persons can only hold 1 loyalty scheme account or arrangement for each casino at a time and it is not transferable; and the maximum value of points or credit where points or credit can be redeemed in cash in a casino loyalty scheme account or ar- rangement is $5,999.99; and casino loyalty scheme points or credit expire after 12 months from the date of the points accrual; and points earned through the casino loyalty scheme can only be re- deemed in New Zealand.
3 This exemption applies to the following: (a) (b) a business relationship that is a membership in a casino loyalty scheme operated by a casino: a casino loyalty scheme card or an instrument that is used by a customer for the purpose of utilising membership in a casino loyalty scheme.
4 However, this exemption does not apply,— 24 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule (a) (b) in relation to clause 3(a), to any casino loyalty card or instrument that enables cashless gambling: in relation to clause 3(b), to any casino loyalty card or instrument that enables other functions to be carried out, including cashless transactions.
5 The exemption from account monitoring obligations— (a) (b) (c) applies only to the obligation to monitor the generation of loyalty points and the redemption of loyalty points; and does not affect the obligation to conduct other account monitoring that might identify grounds for reporting a suspicious activity; and does not affect obligations under section 40 of the Act to report an activ- ity or a suspicious activity.
6 This exemption is made subject to the following conditions: (a) (b) before an application for membership in the loyalty scheme is accepted, the casino must identify each customer and be reasonably satisfied that it has established the customer’s identity; and in relation to a customer identified under paragraph (a), the casino must keep its identity and verification records for a period of 5 years after the end of the business relationship with that customer to assist agencies in the detection, investigation, and prosecution of offences; and (c) section 11(4) of the Act does not apply where information is obtained for the purpose of identification and verification under paragraph (a).
7 The exemption has been made for the following reasons: (a) (b) (c) the money laundering risk associated with casino loyalty schemes is lowered by the criteria listed in clause 2(b); and the conditions set out in clause 6 sufficiently mitigate any negative im- pact on the prevention, detection, investigation, and prosecution of offences this exemption may have; and the compliance burden that casinos would be subject to, in the absence of this exemption, is disproportionate to the risk of money laundering as- sociated with casino loyalty schemes.
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.
Part 12 Statutory supervisors of retirement villages As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt statutory supervisors of retirement villages from sections 11 to 31 of 8 9 1 25 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 the Act for services provided in relation to repayable funds accepted in accord- ance with the Retirement Villages Act 2003 (the RV Act).
For the purposes of this exemption, recipient means a person who is entitled to a refund under the RV Act and, for the avoidance of doubt, is a customer for the purposes of the Act.

This exemption only applies to members of the Trustee Corporations Associ- ation of New Zealand Incorporated that are licensed under the Financial Mar- kets Supervisors Act 2011 to act as a statutory supervisor in respect of retire- ment villages.
This exemption is made subject to the following conditions: (a) a statutory supervisor is required, in accordance with sections 14 to 17 of the Act, to undertake standard customer due diligence on the recipient of any refunded monies when— (i) (ii) an occupation right agreement is cancelled in accordance with section 29(2) of the RV Act; and the statutory supervisor is required to refund moneys over the threshold value of $9,999.99: (b) a statutory supervisor is required, in accordance with sections 23 and 24 of the Act, to undertake enhanced customer due diligence on the recipi- ent referred to in paragraph (a) if the statutory supervisor is required to report the cancellation and refund to the Commissioner as an activity, or suspicious activity, under section 40(3) of the Act.
The exemption has been made for the following reason: there is a low risk of money laundering or terrorism financing through the statutory supervisors when they provide services in relation to repayable funds accepted in accord- ance with the RV Act because— (a) (b) (c) statutory supervisors usually only hold the deposit paid by potential re- tirement village residents, which is ordinarily between $2,500 and $5,000; and there is a comprehensive regime in place regulating the way a prospect- ive resident may enter into an occupation right agreement; and statutory supervisors do not deal in cash, no moneys are passed through a third party, and, by way of separate identification, an independent law- yer is required to certify that a statutory supervisor has advised a pro- spective resident prior to the signing of an occupation right agreement (this ensures there is minimal risk of funds being transferred into the hands of potential money launderers); and (d) when a deposit is paid by someone other than the intended resident, con- firmation of the source of funds is required if the reporting entity con- siders that enhanced due diligence should apply owing to the level of risk involved.
2 3 4 5 26 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Schedule 6 The exemption is made subject to the conditions set out in clause 4 because— (a) (b) any money paid in respect of an occupation right agreement can be re- funded during the 15-working-day cooling-off period as a matter of right; and although unusual, some operators receive a high proportion of the pur- chase price during the cooling-off period and progress payments are also often received during that period (any progress payments received must be held by the statutory supervisor until settlement or cancellation of the occupation right agreement).
7 8 This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.


Part 13 Designated issuers that issue debt securities to specified subscribers through intermediaries 1 As the Associate Minister of Justice, and pursuant to section 157 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009 (the Act), I exempt from sections 10 to 26 and 37 of the Act transactions where a desig- nated issuer issues debt securities to specified subscribers through intermedi- aries.
2 For the purposes of this exemption,— debt securities has the same meaning as in section 8(1) of the Financial Mar- kets Conduct Act 2013 designated issuer means a registered bank or special purpose vehicle that is a reporting entity under the Act intermediary means any NZX Participant, registered bank, or other entity that— (a) (b) is a reporting entity under the Act; and receives an allocation of debt securities for distribution to its clients in relation to the offer of the debt securities by a designated issuer NZX Participant means a Market Participant (as defined in the NZX Partici- pant Rules issued by NZX Limited and dated 1 December 2017, as amended or replaced from time to time) registered bank has the same meaning as in section 2(1) of the Reserve Bank of New Zealand Act 1989 special purpose vehicle has the same meaning as in regulation 9 of the Non- bank Deposit Takers (Declared-out Entities) Regulations 2015 specified subscriber means an investor in debt securities who— 27 Schedule Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 2018/101 (a) is a customer of an intermediary before the debt securities are issued; and (b) is either— (i) (ii) the initial subscriber for the debt securities; or the purchaser of the debt securities from the intermediary.
3 This exemption is subject to the following conditions: (a) (b) (c) the designated issuer must take all reasonably practicable steps to satisfy itself that each intermediary will comply fully with its obligations under sections 10 to 26 and 37 of the Act as they apply to specified subscrib- ers; and the designated issuer may require each intermediary to provide the des- ignated issuer with the customer due diligence information of all speci- fied subscribers that the intermediary holds or has obtained under the Act; and the designated issuer must comply with all relevant obligations in the Act in relation to customer due diligence information concerning the specified subscribers that the designated issuer receives (excluding obli- gations under sections 10 to 26 and 37 of the Act, but including record keeping and all other obligations).
4 The exemption has been granted for the following reasons: (a) (b) (c) the low level of risk of money laundering or financing of terrorism asso- ciated with issuing debt securities to specified subscribers means that re- quiring designated issuers to comply with their obligations under sec- tions 10 to 26 and 37 of the Act is of little benefit: the regulatory burden of compliance would be disproportionate to the benefits in this context: each specified subscriber for debt securities must be a customer of an intermediary through which that customer applies for debt securities, and each intermediary must be a reporting entity for the purposes of the Act (requiring the designated issuer to conduct customer due diligence on specified subscribers may lead to duplication of customer due diligence obligations).
This exemption comes into force on 30 June 2018.

This exemption will expire on 30 June 2023.

5 6 28 2018/101 Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018 Explanatory note Dated at Wellington this 21st day of June 2018.

Hon Aupito William Sio, Associate Minister of Justice.

Explanatory note This note is not part of the notice, but is intended to indicate its general effect.
This notice, which comes into force on 30 June 2018, satisfies the publication re- quirement under section 157(5) of the Anti-Money Laundering and Countering Finan- cing of Terrorism Act 2009 (the Act) for class exemptions that the Minister of Justice grants under section 157(1) of the Act.

Each Part of the Schedule sets out a class ex- emption.

A class exemption applies on and from the date, and expires on the date, specified in the Part of the Schedule that sets out its particulars.
When a class exemp- tion expires, the relevant Part of the Schedule is revoked.

Issued under the authority of the Legislation Act 2012.

Date of notification in Gazette: 26 June 2018.

This notice is administered by the Ministry of Justice.

Wellington, New Zealand: Published under the authority of the New Zealand Government—2018 29