Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698943023631.pdf (New Zealand)
2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 Anand Satyanand, Governor-General Order in Council At Wellington this 27th day of June 2011 Present: His Excellency the Governor-General in Council Pursuant to sections 153 and 154 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and section 56(1)(e) of the Financial Transactions Reporting Act 1996, His Excellency the Governor-General makes the following regulations acting— (a) on the advice and with the consent of the Executive Council; and in relation to regulations made under section 154 of the Anti- Money Laundering and Countering Financing of Terrorism Act 2009, 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.
(b) Contents 1 2 Title Commencement Page 3 3 1 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 Expiry Interpretation Classes of transactions Wire transfers of $1,000 or less exempt from sections 27 and 28 of Act Occasional transactions exempt from certain requirements relating to address information Certain transactions at cashier of casino exempt from section 49(2) of Act Transactions that are not occasional transactions or wire transfers exempt from section 49(2)(d) of Act Certain currency exchange transactions in hotels, etc Classes of services Relevant services provided in respect of certain remittance card facilities Relevant services provided in respect of insurance policies that are closed to new customers and new premiums Relevant services provided in respect of pure risk-based insurance policies Relevant services provided by non-finance business in respect of provision of consumer credit Relevant services provided in respect of certain loyalty schemes Relevant services provided in respect of certain stored value instruments Relevant services provided to related entities Relevant services provided under premium funding agreement by insurance company Relevant services provided under premium funding agreement by non-insurance company Relevant services provided in respect of certain low-value life insurance policies Relevant services provided in respect of certain superannuation schemes Securities registry services Debt collection services Relevant services provided in respect of overseas pension bank accounts Relevant services provided in respect of trust accounts 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 25 Consequential revocations Revocations r 5 14 Regulations Title These regulations are the Anti-Money Laundering and Coun- tering Financing of Terrorism (Exemptions) Regulations 2011.
Commencement These regulations come into force on 30 June 2013.

Expiry These regulations expire on the close of 29 June 2018.
Interpretation In these regulations, unless the context otherwise requires,— Act means the Anti-Money Laundering and Countering Finan- cing of Terrorism Act 2009 financial activity means any financial activity referred to in paragraph (a)(i) to (xiii) of the definition of financial institution in section 5 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 in relation to a reporting entity that is not a financial in- stitution, 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 any regulations made under the Act.
(b) Classes of transactions Wire transfers of $1,000 or less exempt from sections 27 and 28 of Act A transaction involving a wire transfer of $1,000 or less is exempt from sections 27 and 28 of the Act.
3 r 6 6 7 (1) Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 Occasional transactions exempt from certain requirements relating to address information An occasional transaction is exempt from sections 16 and 24 of the Act so far as those provisions relate to the collection of information, under section 15(d) of the Act, about a person’s address or registered office.
(b) Certain transactions at cashier of casino exempt from section 49(2) of Act This regulation applies to each of the following transactions: the purchase of chips at the cashier of a casino below (a) $6,000: the redemption of chips at the cashier of a casino below $6,000: the exchange of coins and purchase of tokens at the cashier of a casino below $6,000: the exchange of coins and redemption of tokens at the cashier of a casino below $6,000: the exchange of notes for notes at the cashier of a casino below $6,000.
(d) (c) (e) (2) A transaction to which this regulation applies is exempt from (3) 8 (1) section 49(2) of the Act.

To avoid doubt, the exemption in subclause (2) does not affect a reporting entity’s duty to carry out customer due diligence in accordance with subpart 1 of Part 2 of the Act or keep records in accordance with section 50 or 51 of the Act.
Transactions that are not occasional transactions or wire transfers exempt from section 49(2)(d) of Act This regulation applies to a transaction— (a) that occurs outside of a business relationship but is not an occasional transaction; and that is not a wire transfer of more than $1,000.

(b) (2) A transaction to which this regulation applies is exempt from section 49(2)(d) of the Act.
To avoid doubt, the exemption in subclause (2) does not affect a reporting entity’s duty to carry out customer due diligence in (3) 4 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 r 10 accordance with subpart 1 of Part 2 of the Act or keep records in accordance with section 50 or 51 of the Act.
9 (1) Certain currency exchange transactions in hotels, etc This regulation applies to a currency exchange transaction that— (a) (b) does not exceed $1,000; and is undertaken by a provider of hotel accommodation or any other accommodation.

(2) A transaction to which this regulation applies is exempt from the provisions of the Act except— subpart 2 of Part 2; and (a) (b) where the transaction is relevant to a suspicious trans- action report, section 49(1) and (2)(a) to (f); and sections 92 to 100.
(c) Classes of services 10 (1) Relevant services provided in respect of certain remittance card facilities This regulation applies to a relevant service provided in re- spect of a remittance card facility in respect of which all of the following apply: (a) the identity of the principal facility holder of the remit- tance card facility is verified in accordance with the Act: the remittance card facility is one on which transactions may not be made by means of a cheque: the remittance card facility cannot operate with a debit balance: a financial institution may only have 2 cards on issue at any one time in respect of a remittance card facility, one of which is held by the principal facility holder and the other is held by 1 other person (the second cardholder): in any consecutive 12-month period, the aggregated value of the transactions involving payments from the remittance card facility does not exceed $9,999.99: the maximum balance of the remittance card facility does not exceed $9,999.99: (b) (c) (d) (e) (f) 5 r 10 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 (g) (h) (i) (j) (k) (l) the remittance card facility’s terms and conditions must include the conditions set out in paragraphs (e) and (f): the principal facility holder acknowledges in writing that— (i) the principal purpose of the remittance card facil- ity is the withdrawal of cash from an automatic teller machine outside New Zealand or the trans- fer of value or withdrawal of cash at a point of sale outside New Zealand; and at the time the remittance card facility is estab- lished, the second cardholder is not resident in New Zealand: (ii) the principal facility holder does not hold more than 1 remittance card facility with any 1 financial institution in any period of 12 consecutive months: the financial institution, in accordance with the Act, keeps all records that are reasonably necessary to— (i) identify the name and address of the second card- holder; and establish that the second cardholder is not resi- dent in New Zealand: (ii) payments into the remittance card facility can only be made in New Zealand: the financial institution offering the remittance card fa- cility conducts, in respect of the remittance card facil- ity, ongoing customer due diligence and monitoring of transactions in accordance with subpart 1 of Part 2 of the Act.
(2) A relevant service to which this regulation applies is exempt subpart 2 of Part 2 ; and from the provisions of the Act except— (a) (b) where the transaction is relevant to a suspicious trans- action report, section 49(1) and (2)(a) to (f); and sections 92 to 100.
(c) For the purposes of this regulation,— principal facility holder, in relation to a facility, means the fa- cility holder or facility holders whom that financial institution reasonably regards, for the time being, as principally respon- sible for the administration of that facility (3) 6 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 r 12 remittance card facility means a facility that— (a) has as its principal purpose the withdrawal of cash from an automatic teller machine outside New Zealand or the transfer of value or withdrawal of cash at a point of sale outside New Zealand; and is accessed by means of a portable device in the form of a card that can operate on an international automatic teller machine and electronic funds transfer at point of sale network.
(b) 11 (1) Relevant services provided in respect of insurance policies that are closed to new customers and new premiums This regulation applies to a relevant service provided in re- spect of an insurance policy that is closed to new premiums (excluding premiums that have been contractually agreed) and is part of a class or type of insurance policy that is closed to new customers.

(2) A relevant service to which this regulation applies is exempt (3) from all of the provisions of the Act.
For the purposes of this regulation, premiums that have been contractually agreed— (a) means those premiums that are contractually agreed to (b) (c) be paid periodically over the life of the contract; and includes catch-up payments when premiums have been in arrears; but excludes premiums paid more than 1 year in advance or additional lump-sum payments.
12 (1) Relevant services provided in respect of pure risk-based insurance policies This regulation applies to a relevant service provided in re- spect of a pure risk-based insurance policy.

(2) A relevant service to which this regulation applies is exempt (3) from all of the provisions of the Act.
For the purposes of this regulation, pure risk-based insur- ance policy means a contract of insurance— 7 r 13 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 (a) (b) for the payment of money on the happening of a contin- gency, other than a contingency dependent on the con- tinuance of human life; and that does not and never will have a value on its cancel- lation or surrender that is greater than the value of an unexpired premium relating to a period after the date of cancellation or surrender.
13 (1) Relevant services provided by non-finance business in respect of provision of consumer credit This regulation applies to a relevant service provided in re- spect of the provision of consumer credit to a consumer by a person in the ordinary course of a non-finance business and either— (a) the provision of credit to the consumer— (i) (ii) is not provided under a credit contract; or is provided under a credit contract that is inciden- tal to the supply of goods or services, or both, by the person to the consumer; or (b) the credit contract to which the provision of credit re- lates is assigned by the person in the ordinary course of the non-finance business within 1 working day of pro- viding the credit to the consumer under the credit con- tract.
(2) A relevant service to which this regulation applies is exempt from all of the provisions of the Act.

For the purposes of this regulation,— credit contract has the same meaning as in section 4 of the Financial Service Providers (Registration and Dispute Reso- lution) Act 2008 non-finance business means a person whose only or princi- pal business is the provision of goods or services that are not relevant services.
Relevant services provided in respect of certain loyalty schemes This regulation applies to a relevant service provided in re- spect of a loyalty scheme.

(3) 14 (1) 8 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 r 15 (2) A relevant service to which this regulation applies is exempt (3) from all of the provisions of the Act.
For the purposes of this regulation,— loyalty scheme means a facility by which a person may make non-cash payments and to which all of the following apply: (a) (b) (c) the facility is issued under a scheme whose only or prin- cipal purpose is to promote the purchase of goods from, or the use of, 1 or more non-finance businesses; and a member of the scheme is allocated credits under the facility (however described and whether or not a mon- etary value is expressly attributed to those credits) as a result of the purchase of goods from, or the use of services of, the non-finance business or businesses (the stored value); and the stored value— (i) can be used to make a non-cash payment for goods or services, or to obtain some other bene- fit, only from 1 or more non-finance businesses; but cannot be withdrawn in cash (ii) make non-cash payments means to make payments, or cause payments to be made, other than by the physical delivery of cash non-finance business has the meaning set out in regulation 13(3) provide includes to offer to provide.
15 (1) Relevant services provided in respect of certain stored value instruments This regulation applies to a relevant service provided in re- spect of a stored value instrument (including a gift facility) whose maximum possible value at any one time is less than,— if the stored value instrument is redeemable for cash, (a) $1,000: if the stored value instrument is not redeemable for cash, $5,000.

(b) (2) A relevant service to which this regulation applies is exempt from all of the provisions of the Act.
9 r 16 (3) Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 For the purposes of this regulation,— gift facility has the same meaning as in regulation 9(2) of the Financial Service Providers (Exemptions) Regulations 2010 stored value instrument— (a) means a portable device that is capable of storing mon- etary value in a form that is not physical currency, re- gardless of whether the device is reloadable or able to be redeemed for cash; and includes— (i) (b) a portable device whose value, or associated value, is transferable to a third party or able to be remitted; and any account or other arrangement associated with the value stored on the device; but (ii) (c) does not include a credit card or debit card or other de- vice in respect of which a person is required to conduct customer due diligence in accordance with the Act.
16 (1) Relevant services provided to related entities This regulation applies to a relevant service that is provided by a reporting entity to a person, where the reporting entity and the recipient of the service are related within the meaning of section 5B(2) of the Securities Markets Act 1988.

(2) A relevant service to which this regulation applies is exempt from all of the provisions of the Act.
17 (1) Relevant services provided under premium funding agreement by insurance company This regulation applies to a relevant service provided under a premium funding agreement that is— (a) (b) provided by an insurance company; and associated with an insurance policy that is issued by that insurance company.

(2) A relevant service to which this regulation applies is exempt from all of the provisions of the Act.
For the purposes of this regulation and regulation 18, pre- mium funding agreement means an agreement under which— (3) 10 2011/223 (a) (b) Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 r 19 a person agrees to make a loan to the customer to be applied— (i) is not subject against an amount payable for premiums under a policy of insurance that to AML/CFT requirements; or against an amount payable in connection with such a policy (including, but not limited to, fees for advice or services provided in connection with such a policy and taxes payable in connec- tion with such a policy); and (ii) if the loan is not provided by the insurer, the person obtains from the customer, as security for payment of the loan, 1 or more of the following: (i) an assignment of the customer’s interest in the policy: an assignment of all amounts payable under the policy: a power of attorney that must provide the right to cancel the policy.
(ii) (iii) 18 (1) Relevant services provided under premium funding agreement by non-insurance company This regulation applies to a relevant service provided under a premium funding agreement that is not provided by an insur- ance company.

(2) A relevant service to which this regulation applies is exempt from sections 15 to 17, 19 to 21, and 23 to 25 of the Act.
19 (1) Relevant services provided in respect of certain low-value life insurance policies Subclause (2) applies to a relevant service provided in respect of promoting, facilitating, or effecting a low-value life insur- ance policy.

(3) (2) A relevant service to which this subclause applies is exempt from sections 16(2) and (3) and 24(2) and (3) of the Act.
For the purposes of section 14(d) of the Act and in relation to low-value life insurance policies, the following circumstances are specified as circumstances in which standard customer due diligence must be conducted: 11 r 20 (4) Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 (a) (b) the first or only payment under a low-value life insur- ance policy has become payable to a customer; and by reason of the exemption granted by subclause (2), none of the actions described in sections 16(2) and (3) and 24(2) and (3) of the Act has been taken in respect of the customer.
For the purposes of this regulation,— consumer credit insurance means insurance cover in the event of the insured’s disability or death or the insured contracting a sickness, sustaining an injury, or becoming un- employed, if the liability of the insurer is to be determined by reference to the liability of the insured under a credit contract or a consumer lease low-value life insurance policy means a life insurance policy that meets 1 or more of the following criteria: (a) a regular premium policy with premiums not more than $1,500 per annum: a single premium policy where the premium is not more than $3,000: a contract of consumer credit insurance.
(b) (c) 20 (1) Relevant services provided in respect of certain superannuation schemes Subclause (2) applies to a relevant service provided in respect of promoting, facilitating, or effecting the membership of a person in a superannuation scheme if the person’s membership is facilitated, or to be facilitated, through his or her employer.

(2) A relevant service to which this subclause applies is exempt from sections 16(2) and (3) and 24(2) and (3) of the Act.
For the purposes of section 14(d) of the Act and in relation to eligible superannuation schemes, the following circumstances are specified as circumstances in which standard customer due diligence must be conducted: (a) the first payment under an eligible superannuation scheme has become payable to a customer; and by reason of the exemption granted by subclause (2), none of the actions described in sections 16(2) and (3) (3) (b) 12 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 r 23 (4) 21 (1) (2) (3) and 24(2) and (3) of the Act has been taken in respect of the customer.
For the purposes of this regulation, superannuation scheme means a registered superannuation scheme within the meaning of section 2(1) of the Superannuation Schemes Act 1989. subpart 2 of Part 2; and Securities registry services This regulation applies to securities registry services.

Securities registry services are exempt from the provisions of the Act except— (a) (b) where the transaction is relevant to a suspicious trans- action report, section 49(1) and (2)(a) to (f); and sections 92 to 100.
(c) For the purposes of this regulation, securities registry ser- vices means the provision of registry and management ser- vices to an issuer or collective investment scheme, including the maintenance of a securities register, the recording of secur- ities transfers, and administrative services in relation to corpo- rate actions or general funds management.
Debt collection services 22 (1) Debt collection services are exempt from the provisions of the (2) 23 subpart 2 of Part 2; and Act other than— (a) (b) where the transaction is relevant to a suspicious trans- action report, section 49(1) and (2)(a) to (f); and sections 92 to 100.

(c) For the purposes of this regulation, debt collection services means the collection of debt by a person other than the creditor to whom it is owed or, where it has been assigned, to whom it was originally owed.
Relevant services provided in respect of overseas pension bank accounts A relevant service provided in respect of an overseas pension bank account within the meaning of the Social Security (Alter- native Arrangement for Overseas Pensions) Regulations 1996 13 r 24 24 (1) Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 is exempt from sections 15 to 17, 19 to 21, and 23 to 25 of the Act.
Relevant services provided in respect of trust accounts This regulation applies to the provision by a reporting entity (A) of an account that is used as a trust account in respect of which all of the following apply: (a) the account is held by a customer (B) who is another re- porting entity or a person subject to the Financial Trans- actions Reporting Act 1996: (c) (b) A has taken reasonable steps to satisfy itself that the ac- count is being operated for legitimate and professional purposes and not to obscure the beneficial ownership of the account: A has a written agreement with B that B will, on request, produce to A the information relating to the names and dates of birth of the clients whose funds are held in the trust account (the clients) and the means of verifying that information.
(2) A is, in relation to those clients, exempt from sections 11(1)(b) and 16(1)(b) of the Act.

For the purposes of this regulation, trust account means an account or other arrangement for the purpose of holding funds that belong to more than 1 client of a reporting entity or person subject to the Financial Transactions Reporting Act 1996.
Revocations Consequential revocations The following regulations are revoked: (a) the Financial Transactions Reporting (Interpretation) Regulations (No 2) 1997 (SR 1997/366): the Financial Transactions Reporting (Interpretation) Regulations 2008 (SR 2008/309).

(b) (3) 25 14 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 Explanatory note Rebecca Kitteridge, 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 come into force on 30 June 2013 and expire on the close of 29 June 2018.
These regulations apply to entities that are otherwise required to comply with the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) and wholly or partly exempt services provided in relation to— • a wire transfer of $1,000 or less; the exemption is from the identity and verification requirements of the Act (regulation 5): an occasional transaction, that is, a transaction of $10,000 or more that occurs outside a business relationship; the exemp- tion is from the obligation of verifying address information (regulation 6): specified transactions below $6,000 that take place in casinos; the exemption is from certain record-keeping requirements (regulation 7): certain low-value transactions; the exemption is from the re- quirement to record the parties to the transaction (regulation 8): exchange of currency in hotels of $1,000 or less; the exemp- tion is from the provisions of the Act, except for the duty of recording the nature and the amount of the transaction and, where applicable, the duty of making a suspicious transactions report (regulation 9): remittance card facilities that meet specified conditions; such cards facilitate remittances from people in New Zealand to people in other countries, particularly Pacific Island countries; the exemption is from the provisions of the Act (regulation 10): pure risk-based insurance policies and also all closed insur- ance policies, that is, types of policies no longer available for • • • • • • 15 Explanatory note Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 2011/223 new customers or the payment of new premiums; the exemp- tion is from the provisions of the Act (regulations 11 and 12): certain consumer credit provided by non-finance businesses, such a retailers; the exemption is from the provisions of the Act (regulation 13): certain loyalty schemes, such as Fly Buys; the exemption is from the provisions of the Act (regulation 14): certain instruments used for non-cash payments (other than credit cards or debit cards), such as gift vouchers or electronic cards issued by stores; the exemption is from the provisions of the Act (regulation 15): services provided between related entities; the exemption is from the provisions of the Act (regulation 16): premium funding agreements, that is, finance associated with insurance policies; the exemption is from the provisions of the Act in the case of the issuing insurance company, and from the customer due diligence requirements in the case of non- insurers (regulations 17 and 18): the establishment of low-value life insurance policies and memberships, facilitated by employers, in superannuation schemes.
Low-value life insurance policies are policies that carry premiums of not more than $1,500 per annum or, in the case of a single policy, no more than $3,000, or that form part of a consumer credit contract; the exemption is from carrying out verification of identity at the time the business relationship is established; however, such verification must be carried out before the customer receives the first payment (regulations 19 and 20): securities registry services; the exemption is from the provi- sions of the Act except for certain record-keeping obligations and, where applicable, the duty of making a suspicious trans- action report (regulation 21): debt collection services; the exemption is from the provisions of the Act except for certain record-keeping requirements and, where applicable, the duty of making a suspicious transaction report (regulation 22): certain overseas pension accounts; the exemption is from the due diligence requirements (regulation 23): • • • • • • • • • 16 2011/223 Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 Explanatory note • certain trust accounts; the exemption is from the customer due diligence requirements in relation to the persons whose moneys are held in the trust accounts (regulation 24).
The regulations also consequentially revoke two sets of regulations made under the Financial Transactions Reporting Act 1996 (regula- tion 25).

Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 30 June 2011.

These regulations are administered by the Ministry of Justice.

12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2011 17