Source document: https://docs-lawep.s3.us-east-2.amazonaws.com/1698836313215.pdf (New Zealand)
Reprint as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Public Act Date of assent Commencement 2009 No 35 16 October 2009 see section 2 Contents Title Commencement Part 1 Preliminary provisions Purpose Overview Interpretation Application of this Act to reporting entities Amounts not in New Zealand currency Act binds the Crown Part 2 AML/CFT requirements and compliance Non-compliance not excused by contractual obligations Page 8 8 9 10 11 22 22 23 23 Note Changes authorised by subpart 2 of Part 2 of the Legislation Act 2012 have been made in this reprint.
Note 4 at the end of this reprint provides a list of the amendments incorporated.

This Act is administered by the Ministry of Justice.
1 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Subpart 1—Customer due diligence Definitions Customer due diligence Reliance on risk assessment when establishing level of risk Basis for verifying identity Standard customer due diligence Circumstances when standard customer due diligence applies Standard customer due diligence: identity requirements Standard customer due diligence: verification of identity requirements Standard customer due diligence: other requirements Simplified customer due diligence Circumstances when simplified customer due diligence applies Simplified customer due diligence: identity requirements Simplified customer due diligence: verification of identity requirements Simplified customer due diligence: other requirements Enhanced customer due diligence Circumstances when enhanced customer due diligence applies Enhanced customer due diligence: identity requirements Enhanced customer due diligence: verification of identity requirements Enhanced customer due diligence: other requirements Politically exposed person Wire transfers: identity requirements Wire transfers: verification of identity requirements Correspondent banking relationships New or developing technologies, or products, that might favour anonymity Ongoing customer due diligence and account monitoring Ongoing customer due diligence and account monitoring Reliance on third parties Reliance on member of designated business group Reliance on other reporting entities or persons in another country Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 Reliance on agents Use of information obtained from third party conducting customer due diligence Protection of personal information and designated business groups
 Prohibitions Prohibitions if customer due diligence not conducted Prohibition on false customer names and customer anonymity Prohibition on establishing or continuing business relationship involving shell bank Subpart 2—Suspicious transaction reports Reporting entities to report suspicious transactions Nature of suspicious transaction report Privileged communication defined Auditors may report suspicious transactions Protection of persons reporting suspicious transactions Immunity from liability for disclosure of information relating to money laundering transactions Disclosure of information relating to suspicious transaction reports Disclosure of information in proceedings Disclosure of personal information relating to employees or senior managers Subpart 3—Record keeping Obligation to keep transaction records Obligation to keep identity and verification records Obligation to keep other records How records to be kept When records need not be kept Destruction of records Other laws not affected Subpart 4—Compliance with AML/CFT requirements Reporting entity must have AML/CFT programme and AML/CFT compliance officer Minimum requirements for AML/CFT programmes Risk assessment Review and audit of risk assessment and AML/CFT programme Annual AML/CFT report 38 38 38 39 40 40 41 42 43 44 44 45 46 48 48 48 49 50 51 51 51 52 52 53 54 55 56 3 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 61 62 63 64 65 66 67 68 69 70 71 Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements Subpart 5—Codes of practice Interpretation AML/CFT supervisors to prepare codes of practice for relevant sectors Procedure for approval and publication of codes of practice Amendment and revocation of codes of practice Proof of codes of practice Legal effect of codes of practice Subpart 6—Cross-border transportation of cash Reports about movement of cash into or out of New Zealand Reports about receipt of cash from
 outside New Zealand Reporting requirements Information to be forwarded to Commissioner Part 3 Enforcement Subpart 1—General provisions relating to Part Proceedings for civil penalties 72 When and how civil penalty proceedings brought Relationship between civil penalty and criminal proceedings Relationship between concurrent civil penalty proceedings and criminal proceedings One penalty only rule Restriction on use of evidence given in civil penalty proceedings Immunities Protection for AML/CFT supervisors Protection for reporting entities, officers, etc, acting in compliance with this Act Subpart 2—Civil liability Meaning of civil liability act Possible responses to civil liability act Formal warnings Formal warnings 73 74 75 76 77 78 79 80 4 56 57 57 58 59 59 59 60 61 61 61 62 63 63 63 64 64 65 65 65 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 Enforceable undertakings Enforceable undertakings Enforcement of undertakings Assessment of compensation for breach of undertakings Injunctions Powers of High Court not affected Performance injunctions When High Court may grant performance injunctions Restraining injunctions When High Court may grant restraining injunctions and interim injunctions Undertaking as to damages not required by AML/CFT supervisor Pecuniary penalties Pecuniary penalties for civil liability act Subpart 3—Offences Offence and penalties relating to civil liability act Offence and penalties for civil liability act Offences relating to suspicious transaction reports Failing to report suspicious transaction Providing false or misleading information in connection with suspicious transaction report Unlawful disclosure of suspicious transaction report Failure to keep or retain adequate records relating to suspicious transaction Obstruction of investigation relating to suspicious transaction report Contravention of section 47(1)
 Defence Time limit for prosecution of offences relating to civil liability act and suspicious transaction reports Penalties Other offences relating to non-compliance with AML/CFT requirements Structuring transaction to avoid application of AML/CFT requirements Offence to obstruct AML/CFT supervisor Offence to provide false or misleading information to AML/CFT supervisor 66 66 66 67 67 67 68 68 69 69 70 70 71 71 72 72 72 72 73 73 74 74 74 5 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 104 105 106 107 108 109 110 111 112 113 Time limit for prosecution of offences relating to non-compliance with AML/CFT requirements Penalties Offences relating to cross-border transportation of cash Failure to report cash over applicable threshold value moved into or out of New Zealand Failure to report cash over applicable threshold value received by person in New Zealand from overseas Structuring cross-border transportation to avoid application of AML/CFT requirements Defence Providing false or misleading information in connection with cash report Offence to obstruct or not to answer questions from Customs officer Penalties Chief executive of New Zealand Customs Service may deal with cash reporting offences Relationship with Customs and Excise Act 1996 114 Relationship with Customs and Excise Act 1996 115 Computer searches by Customs officer Duty of persons with knowledge of computer or computer network or other data storage devices to assist access to Customs officer 116 Definitions Subpart 4—Search and seizure Search warrants Search warrant Powers under search warrant Conduct of entry, search, and seizure Assistance with searches [Repealed] Enforcement officers to show identity card on request [Repealed] Announcement before entry [Repealed] Details of warrant to be given to occupier Occupier entitled to be present during search Use of electronic equipment Copies of documents seized to be provided [Repealed] Receipts for
 things seized [Repealed] Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 127 Application of sections 198A and 198B of Summary Proceedings Act 1957 [Repealed] Return and retention of things seized [Repealed] 128 129 Return and retention of things seized [Repealed] Order to retain things seized [Repealed] Part 4 Institutional arrangements and miscellaneous provisions Subpart 1—Institutional arrangements AML/CFT supervisors AML/CFT supervisors Functions Powers 130 131 132 133 Matters relating to conduct of on-site inspections 134 135 136 Delegation of supervisory function and powers Authority to act as delegate Effect of delegation Use and disclosure of information Power to use information obtained as AML/CFT supervisor in other capacity and vice versa Restriction on power to use information under section 137 Power to disclose information supplied or obtained as AML/CFT supervisor Power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes Enforcement officers Financial intelligence functions of Commissioner Financial intelligence functions of Commissioner Powers relating to financial intelligence functions of Commissioner Delegation of powers of Commissioner Guidelines relating to reporting of suspicious transactions Consultation on proposed guidelines Availability of guidelines Review of guidelines Co-ordination Role of Ministry AML/CFT co-ordination committee Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 s 1 151 152 153 154 155 156 Role of AML/CFT co-ordination committee Functions Subpart 2—Miscellaneous provisions Regulations Regulations Regulations relating to application of Act
 Regulations relating to countermeasures Consultation not required for consolidation of certain regulations and minor amendments Ministerial exemptions 157 Minister may grant exemptions 158 Minister must consult before granting exemption 159 Requirements relating to exemptions Transitional and savings provisions 160 Transitional and savings provisions 161 162 163 Consequential amendments, repeals, and revocation Amendments to other enactments Amendment to Financial Transactions Reporting Act 1996 consequential on bringing into force of Part 2 Amendment to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash Schedule 1 Transitional and savings provisions Schedule 2 Consequential amendments The Parliament of New Zealand enacts as follows: 97 97 98 100 102 103 103 104 105 105 105 105 106 107 108 Title This Act is the Anti-Money Laundering and Countering Fi- nancing of Terrorism Act 2009.
Commencement Parts 1 and 4 (except section 162) come into force on the day after the date that this Act receives the Royal assent.

1 2 (1) 8 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 3 (2) (3) Sections 68 to 71, 106 to 115, and 163 come into force 12 months after the date on which this Act receives the Royal assent.
Except as provided in subsection (5), the rest of this Act comes into force on a date to be appointed by the Governor-General by Order in Council.

(4) One or more Orders in Council may be made appointing dif- ferent dates for the commencement of different provisions.

(5) However, section 162 may not be brought into force unless every provision of Part 2 has been brought into force.
Section 2: subpart 5 of Part 2 brought into force, on 30 June 2011, by clause 2(1) of the Anti-Money Laundering and Countering Financing of Terrorism Act Commencement Order 2011 (SR 2011/221).

Section 2: the rest of this Act (except section 162) not in force immediately after the commencement of subpart 5 of Part 2 brought into force, on 30 June 2013, by clause 2(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act Commencement Order 2011 (SR 2011/221).
Section 2: section 162 brought into force, on 30 June 2013 (immediately after the rest of this Act commenced by clause 2(2) of the order), by clause 2(3) of the Anti-Money Laundering and Countering Financing of Terrorism Act Commencement Order 2011 (SR 2011/221).
Part 1 Preliminary provisions 3 (1) Purpose The purposes of this Act are— (a) to detect and deter money laundering and the financing of terrorism; and to maintain and enhance New Zealand’s international reputation by adopting, where appropriate in the New Zealand context, recommendations issued by the Finan- cial Action Task Force; and to contribute to public confidence in the financial sys- tem.
(b) (c) (2) Accordingly, this Act facilitates co-operation amongst report- ing entities, AML/CFT supervisors, and various government agencies, in particular law enforcement and regulatory agen- cies.

9 Part 1 s 4 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Overview This section is a guide to the general scheme and effect of this Act, but does not affect the interpretation or application of the other provisions of the Act.
Part 1 deals with preliminary matters such as definitions of terms used in the Act.

It sets out the purpose of the Act and the extent to which it applies to reporting entities.
Part 2 deals with AML/CFT requirements and compliance and has 6 subparts, as follows: (a) subpart 1 includes provisions dealing with requirements on reporting entities to conduct due diligence on cus- tomers and certain other persons, the ability of reporting entities to rely on third parties to carry out customer due diligence and other AML/CFT functions, and prohib- itions on establishing or continuing business relation- ships and setting up facilities in certain circumstances: subpart 2 includes provisions dealing with requirements on reporting entities to report suspicious transactions, protection of persons making suspicious transaction re- ports, and disclosure of information relating to such re- ports: subpart 3 sets out requirements on reporting entities to keep records and includes provisions concerning the storage and destruction of records: subpart 4 deals with reporting entities’ internal policies and procedures relating to the prevention of money laundering and the financing of terrorism, including provisions setting out requirements for reporting en- tities to have an AML/CFT programme for detecting and managing the risk of money laundering and the financing of terrorism, to carry out a risk assessment before conducting customer due diligence or establish- ing an AML/CFT programme, and to review, audit, and report on their risk assessment and AML/CFT programmes: subpart 5 deals with codes of practice and includes provisions relating to the preparation of codes by AML/CFT supervisors, approval of codes of practice, and their legal effect: (b) (c) (d) (e) 4 (1) (2) (3) 10 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 5 (4) (5) 5 (f) subpart 6 contains provisions relating to the reporting of certain movements of cash into and out of New Zealand.
Part 3 deals with enforcement and contains provisions relating to civil liability acts, offences, search and seizure, penalties, and immunity of certain persons from civil and criminal pro- ceedings.
Part 4 deals with institutional arrangements and miscellaneous matters and has 2 subparts, as follows: (a) that subpart 1 includes provisions identify the AML/CFT supervisors and their functions, powers, and ability to delegate supervisory functions; the financial intelligence functions of the Commissioner of Police and a requirement on that person to issue guidelines relating to suspicious transaction reports; the roles the AML/CFT and responsibilities of the Ministry, co-ordination committee required to be established by the chief executive of the Ministry, and other agencies concerning monitoring, evaluating, and advising on the operation of the AML/CFT regulatory system: subpart 2 includes regulation-making powers and pro- visions relating to the Minister’s power to grant exemp- tions from the requirements of the Act.
(b) Interpretation In this Act, unless the context otherwise requires,— AML/CFT means anti-money laundering and countering the financing of terrorism AML/CFT programme means a compliance programme es- tablished under section 56(1) AML/CFT requirements means the requirements set out in Part 2 AML/CFT supervisor, in relation to a reporting entity, means the person referred to in section 130(1) that is responsible for supervising the reporting entity under Parts 3 and 4 applicable threshold value means the threshold value that— (a) is prescribed in regulations; and 11 Part 1 s 5 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (b) applies to a particular person, class of persons, transac- tion, class of transactions, financial activity, or class of financial activities prescribed in regulations a bill of exchange; or a cheque; or a promissory note; or a bearer bond; or a traveller’s cheque; or a money order, postal order, or similar order; or any other instrument prescribed by regulations bearer-negotiable instrument means— (a) (b) (c) (d) (e) (f) (g) beneficial owner means the individual who— (a) has effective control of a customer or person on whose behalf a transaction is conducted; or owns a prescribed threshold of the customer or person on whose behalf a transaction is conducted (b) crediting it to an account held by the payee; or paying it to the payee beneficiary institution, in relation to a wire transfer from an ordering institution, means any person who receives those funds and then makes those funds available to a person (the payee) by— (a) (b) business relationship means a business, professional, or com- mercial relationship between a reporting entity and a customer that has an element of duration or that is expected by the re- porting entity, at the time when contact is established, to have an element of duration cash means— (a) (b) cash report means a report made under subpart 6 of Part 2 casino means the holder of a casino operator’s licence under
 the Gambling Act 2003 chief executive means the chief executive of the Ministry civil liability act has the meaning set out in section 78 code of practice and proposed code of practice have the meanings set out in section 62 Commissioner means the Commissioner of Police physical currency: bearer-negotiable instruments 12 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 5 constable has the same meaning as in section 4 of the Policing Act 2008 correspondent banking relationship has the meaning set out in section 29(3) country includes any State, territory, province, or other part of a country customer— (a) means a new customer or an existing customer; and (b) includes— (i) (ii) (iii) (iv) a facility holder: a person conducting or seeking to conduct an oc- casional transaction through a reporting entity: a junket organiser as defined in section 4(1) of the Gambling Act 2003: a person or class of persons declared by regula- tions to be a customer for the purposes of this Act; but (c) excludes a person or class of persons that is declared by regulations not to be a customer for the purposes of this Act Customs officer has the same meaning as in section 2(1) of the Customs and Excise Act 1996 designated business group means a group of 2 or more per- sons where— (a) each member of the group has elected, in writing, to be a member of the group and the election is in force; and each election was made in accordance with regulations (if any); and no member of the group is a member of another desig- nated business group; and each member of the group is— (i) related to each other member of the group within the meaning of section 2(3) of the Companies Act 1993 and is— (A) a reporting entity resident in New Zealand; or a person that is resident in another coun- try with sufficient anti-money laundering and countering the financing of terrorism (B) (b) (c) (d) 13 Part 1 s 5 Anti-Money Laundering and Countering Financing
 of Terrorism Act 2009 Reprinted as at 5 December 2013 systems and is supervised or regulated for anti-money laundering and countering the financing of terrorism purposes; or providing a service under a joint venture agree- ment, to which each member of the group is a party; or a government department named in Schedule 1 of the State Sector Act 1988, a State enterprise under the State-Owned Enterprises Act 1986, or a Crown entity under section 7 of the Crown En- tities Act 2004; or related to 1 or more of the entities in subpara- graph (iii) through the provision of common products or services; or an entity or class of entities prescribed by regu- lations; and (ii) (iii) (iv) (v) (e) each member of the group satisfies any conditions that may be prescribed by regulations and that apply to that member domestic wire transfer has the meaning set out in section 27(7) existing customer, in relation to a reporting entity, means a person who was in a business relationship with the reporting entity immediately before the commencement of Part 2 facility— (a) means any account or arrangement— (i) (ii) that is provided by a reporting entity; and through which a facility holder may conduct 2 or more transactions; and (b) without limiting paragraph (a), includes— a life insurance policy: (i) (ii) membership of a superannuation scheme: (iii) the provision, by a reporting entity, of facilities for safe custody, including (without limitation) a safety deposit box: an account or arrangement declared by regula- tions to be a facility for the purposes of this Act; but (iv) 14 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 5 (c) excludes an account or arrangement declared by regu- lations not to be a facility for the purposes of this Act facility holder, in relation to a facility,— (a) means the person in whose name the facility is estab- (b) (c) lished; or if that facility is a life insurance policy, means any per- son who
 for the time being is the legal holder of that policy; or if that facility consists of membership of a superannu- ation scheme, means any person who is a member of the scheme within the meaning of member in section 2(1) of the Superannuation Schemes Act 1989 financial institution— (a) means a person who, in the ordinary course of business, carries on 1 or more of the following financial activities: accepting deposits or other repayable funds from (i) the public: lending to or for a customer, including consumer credit, mortgage credit, factoring (with or with- out recourse), and financing of commercial trans- actions (including forfeiting): (ii) (iii) financial leasing (excluding financial leasing ar- (iv) (v) (vi) (vii) rangements in relation to consumer products): transferring money or value for, or on behalf of, a customer: issuing or managing the means of payment (for example, credit or debit cards, cheques, trav- eller’s cheques, money orders, bankers’ drafts, or electronic money): undertaking financial guarantees and commit- ments: trading for the person’s own account or for the accounts of customers in any of the following: (A) money market instruments (for example, cheques, bills, certificates of deposit, or derivatives): foreign exchange: exchange, interest rate, or index instru- ments: (B) (C) 15 Part 1 s 5 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (D) (E) transferable securities: commodity futures trading: (viii) participating in securities issues and the provi- sion of financial services related to those issues: (xi) (xii) (ix) managing individual or collective portfolios: (x) safe keeping or administering of cash or liquid securities on behalf of other persons: investing, administering, or managing funds or money on behalf of other persons: issuing, or undertaking liability under, life insur- ance policies as an insurer: (xiii) money or currency changing; and includes a person or class of
 persons declared by regu- lations to be a financial institution for the purposes of this Act; but excludes a person or class of persons declared by regu- lations not to be a financial institution for the purposes of this Act (b) (c) financing of terrorism has the same meaning as in section 4(1) of the Terrorism Suppression Act 2002 gambling inspector has the same meaning as in section 4(1) of the Gambling Act 2003 government agency means— (a) a government department named in Schedule 1 of the State Sector Act 1988; or a Crown entity under section 7 of the Crown Entities Act 2004; or the Reserve Bank, the Parliamentary Counsel Office, the New Zealand Police, and the New Zealand Security Intelligence Service; or any overseas country’s counterpart of any of the entities in paragraphs (a) to (c) (b) (c) (d) identity information means information obtained under sec- tions 15, 19, 23, and 27(1) and (2) and any other information relating to identity prescribed by sections 29(2)(g) and 30(b) individual means a natural person, other than a deceased nat- ural person 16 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 5 intermediary institution, in relation to a wire transfer, is a person that participates in a transfer of funds that takes place through more than 1 institution but is not an ordering institu- tion or a beneficiary institution law enforcement purposes means— the administration of this Act: (a) the detection, investigation, and prosecution of— (b) (i) (ii) (iii) any offence under this Act; or a money laundering offence; or any offence under section 143B of the Tax Ad- ministration Act 1994; or any serious offence (within the meaning of sec- tion 243(1) of the Crimes Act 1961): (iv) (c) (d) (e) (f) (g) (h) the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 2009: the enforcement of the Misuse of Drugs Act 1975: the enforcement of the Terrorism Suppression Act 2002: the
 administration of the Mutual Assistance in Criminal Matters Act 1992: the investigation of matters relating to security under the New Zealand Security Intelligence Service Act 1969: any action referred to in paragraphs (a) to (g) taken in respect of legislation of an overseas jurisdiction that is broadly equivalent to the enactments listed in those paragraphs life insurance policy means a life policy within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010 Minister means the Minister who is, with the authority of the Prime Minister, for the time being responsible for the admin- istration of this Act Ministry means the department of State that, with the author- ity of the Prime Minister, is for the time being responsible for the administration of this Act money laundering offence means an offence against section 243 of the Crimes Act 1961 or section 12B of the Misuse of Drugs Act 1975 or any act committed overseas that, if commit- 17 Part 1 s 5 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 ted in New Zealand, would be an offence under those sections of those Acts occasional transaction— (a) means a cash transaction that occurs outside of a busi- ness relationship and is over the applicable threshold value (whether the transaction is carried out in a single operation or several operations that appear to be linked); and includes a transaction or class of transactions declared by regulations to be an occasional transaction for the purposes of this Act; but excludes— (i) (ii) cheque deposits; and a transaction or class of transactions declared by regulations not to be an occasional transaction for the purposes of this Act (b) (c) ordering institution— (a) means any person who has been instructed by a person (the payer) to electronically transfer funds controlled by the payer to a person (the payee) who may or may not be the payer on the basis that the transferred funds will be made available
 to the payee by a beneficiary institution; and includes a person declared by regulations to be an order- ing institution for the purposes of this Act; but excludes a person or class of persons declared by regu- lations not to be an ordering institution for the purposes of this Act (b) (c) physical currency means the coin and printed money (whether of New Zealand or of a foreign country) that— (a) (b) is designated as legal tender; and circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue Police employee has the same meaning as in section 4 of the Policing Act 2008 politically exposed person means— (a) an individual who holds, or has held at any time in the preceding 12 months, in any overseas country the prominent public function of— 18 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 5 (i) (ii) Head of State or head of a country or government; or government minister or equivalent senior politi- cian; or (iii) Supreme Court Judge or equivalent senior Judge; (iv) (v) or governor of a central bank or any other position that has comparable influence to the Governor of the Reserve Bank of New Zealand; or senior foreign representative, ambassador, or high commissioner; or high-ranking member of the armed forces; or (vi) (vii) board chair, chief executive, or chief financial of- ficer of, or any other position that has comparable influence in, any State enterprise; and (b) (c) an immediate family member of a person referred to in paragraph (a), including— a spouse; or (i) a partner, being a person who is considered by the (ii) relevant national law as equivalent to a spouse; or a child and a child’s spouse or partner; or a parent; and (iii) (iv) having regard to information that is public or readily available,— (i) any individual who is known to have joint bene- ficial ownership of a legal entity or legal arrange- ment, or any other close relationship, with a
 per- son referred to in paragraph (a); or any individual who has sole beneficial owner- ship of a legal entity or legal arrangement that is known to exist for the benefit of a person de- scribed in paragraph (a) (ii) registered bank has the same meaning as in section 2(1) of the Reserve Bank of New Zealand Act 1989 regulations means regulations made under this Act reporting entity— (a) means— (i) (ii) a financial institution; and a casino; and 19 Part 1 s 5 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (b) includes— (i) a person or class of persons declared by regula- tions to be a reporting entity for the purposes of this Act; and any other person that is required by any enact- ment to comply with this Act as if it were a re- porting entity; but (ii) (c) excludes a person or class of persons declared by regu- lations not to be a reporting entity for the purposes of this Act security has the same meaning as in section 2(1) of the New Zealand Security Intelligence Service Act 1969 senior manager (and senior management correspondingly) means,— (a) in relation to a reporting entity that is a company, a dir- ector within the meaning of section 126 of the Compan- ies Act 1993; and in relation to a reporting entity that is not a company, a person who occupies a position comparable to that of a director (for example, a trustee or partner); and any other person who occupies a position within a re- porting entity that allows that person to exercise an in- fluence over the management or administration of the reporting entity (for example, a chief executive or a chief financial officer) (b) (c) shell bank has the meaning set out in section 39(2) suspicious property report has the same meaning as in sec- tion 4(1) of the Terrorism Suppression Act 2002 suspicious transaction report means a report made under section 40 transaction— (a) means any deposit, withdrawal, exchange, or transfer of funds (in any denominated currency),
 whether— (i) (ii) in cash; or by cheque, payment order, or other instrument; or by electronic or other non-physical means; and (iii) (b) without limiting paragraph (a), includes— 20 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 1 s 5 (c) (i) (ii) any payment made in satisfaction, in whole or in part, of any contractual or other legal obligation; and a transaction or class of transactions declared by regulations to be a transaction for the purposes of this Act; but excludes the following: (i) (ii) the placing of any bet: participation in gambling as defined in section 4(1) of the Gambling Act 2003: a transaction or class of transactions declared by regulations not to be a transaction for the pur- poses of this Act (iii) trustee has the same meaning as in section 2(1) of the Trustee Act 1956 verification information means information obtained under sections 16, 20, 24, and 28 wire transfer— (a) means a transaction carried out on behalf of a person (the originator) through a reporting entity by electronic means with a view to making an amount of money avail- able to a beneficiary (who may also be the originator) at another financial institution; and includes a transfer or transaction, or class of transfers or transactions, declared by regulations to be a wire trans- fer for the purposes of this Act; but excludes— (i) (b) (c) transfers and settlements between financial insti- tutions if both the originator and the beneficiary are financial institutions acting on their own be- half; and credit and debit card transactions if the credit or debit card number accompanies the transaction; and any other transfer or transaction or class of trans- fers or transactions declared by regulations not to be a wire transfer for the purposes of this Act.
(ii) (iii) 21 Part 1 s 6 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Section 5 designated business group paragraph (d)(v): amended, on 12 De- cember 2012, by section 4 of the Anti-Money Laundering and Countering Fi- nancing of Terrorism Amendment Act 2012 (2012 No 98).

Section 5 financial institution paragraph (a)(xii): substituted, on 1 February 2011, by section 241(2) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
Section 5 government agency paragraph (d): replaced, on 5 December 2013, by section 4 of the Anti-Money Laundering and Countering Financing of Ter- rorism Amendment Act 2013 (2013 No 106).

Section 5 life insurance policy: inserted, on 1 February 2011, by section 241(2) of the Insurance (Prudential Supervision) Act 2010 (2010 No 111).
Application of this Act to reporting entities This Act applies to a reporting entity only to the extent that— in the case of a reporting entity that is a financial insti- (a) tution, the financial activities undertaken by that entity fall within the activities described in the definition of fi- nancial institution; or a reporting entity, that is not a financial institution, is carrying out activities that may give rise to a risk of money laundering or financing of terrorism.
(b) Amounts not in New Zealand currency This section applies if, for the purposes of this Act, it is neces- sary to determine whether the amount of any cash (whether alone or together with any other amount of cash)— (a) (b) exceeds the applicable threshold value; and is denominated in a currency other than New Zealand currency.
If this section applies, the amount of the cash is taken to be the equivalent in New Zealand currency,— (a) calculated at the rate of exchange on the date of the determination; or if there is more than 1 rate of exchange on that date, calculated at the average of those rates.
(b) For the purposes of this section, a written certificate purport- ing to be signed by an officer of any bank in New Zealand that a specified rate of exchange prevailed between currencies on a specified day, and that at such rate a specified sum in a par- ticular currency is equivalent to a specified sum in terms of the 6 7 (1) (2) (3) 22 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 11 currency of New Zealand, is sufficient evidence of the rate of exchange so prevailing and of the equivalent sums in terms of the respective currencies.
Compare: 1996 No 9 s 4 8 Act binds the Crown This Act binds the Crown.

Part 2 AML/CFT requirements and compliance 9 (1) Non-compliance not excused by contractual obligations This Act has effect despite anything to the contrary in any contract or agreement.

(2) No person is excused from compliance with any requirement of this Act or regulations by reason only that compliance with that requirement would constitute breach of any contract or agreement.
10 Subpart 1—Customer due diligence Definitions In this subpart, unless the context otherwise requires,— enhanced customer due diligence means customer due dili- gence in accordance with the requirements set out in sections 23 to 30 and any other requirements prescribed by regulations simplified customer due diligence means customer due dili- gence in accordance with the requirements set out in sections 19 to 21 and any other requirements prescribed by regulations standard customer due diligence means customer due dili- gence in accordance with the requirements set out in sections 15 to 17 and any other requirements prescribed by regulations.
Customer due diligence 11 (1) A reporting entity must conduct customer due diligence on— (a) (b) (c) a customer: any beneficial owner of a customer: any person acting on behalf of a customer.
23 Part 2 s 12 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (2) (3) For the purposes of subsection (1)(b), a customer who is an individual and who the reporting entity believes on reason- able grounds is not acting on behalf of another person is to be treated as if he or she were also the beneficial owner unless the reporting entity has reasonable grounds to suspect that that customer is not the beneficial owner.
The type of customer due diligence that must be conducted by a reporting entity is,— (a) in the circumstances described in section 14, at least standard customer due diligence: in the circumstances described in section 18, at least simplified customer due diligence: in the circumstances described in section 22, enhanced customer due diligence.
(b) (c) (4) A reporting entity that is required to conduct customer due dili- gence in the circumstances described in sections 14, 18, and 22 is not required to obtain or verify any documents, data, or information that it has previously obtained and verified for the purposes of carrying out customer due diligence in accordance with this Act, unless there are reasonable grounds for the re- porting entity to doubt the adequacy or veracity of the docu- ments, data, or information previously obtained.
(5) Nothing in subsection (4) affects the obligation to conduct on- going customer due diligence in accordance with section 31.

Reliance on risk assessment when establishing level of risk When establishing the level of risk involved for the purposes of this subpart, a reporting entity must rely on its AML/CFT programme and its risk assessment undertaken in accordance with section 58.
Basis for verifying identity Verification of identity must be done on— (a) (b) the basis of documents, data, or information issued by a reliable and independent source; or any other basis applying to a specified situation, cus- tomer, product, service, business relationship, or trans- action prescribed by regulations.
12 13 24 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 16 Standard customer due diligence 14 15 Circumstances when standard customer due diligence applies A reporting entity must conduct standard customer due dili- gence in the following circumstances: (a) if the reporting entity establishes a business relationship with a new customer: if a customer seeks to conduct an occasional transaction through the reporting entity: if, in relation to an existing customer, and according to the level of risk involved,— (i) there has been a material change in the nature or purpose of the business relationship; and the reporting entity considers that it has insuffi- cient information about the customer: any other circumstances specified in regulations.
(ii) (b) (c) (d) Standard customer due diligence: identity requirements A reporting entity must obtain the following identity informa- tion in relation to the persons referred to in section 11(1): (a) (b) (c) the person’s full name; and the person’s date of birth; and if the person is not the customer, the person’s relation- ship to the customer; and the person’s address or registered office; and the person’s company identifier or registration number; and any information prescribed by regulations.
(d) (e) (f) 16 Standard customer due diligence: verification of identity requirements (1) A reporting entity must— (a) (b) take reasonable steps to satisfy itself that the informa- tion obtained under section 15 is correct; and according to the level of risk involved, take reasonable steps to verify any beneficial owner’s identity so that the reporting entity is satisfied that it knows who the beneficial owner is; and 25 Part 2 s 17 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (c) if a person is acting on behalf of the customer, accord- ing to the level of risk involved, take reasonable steps to verify the person’s identity and authority to act on behalf of the customer so that the reporting entity is sat- isfied it knows who the person is and that the person has authority to act on behalf of the customer; and (d) verify any other information prescribed by regulations.
Except as provided in subsection (3), a reporting entity must carry out verification of identity before establishing a business relationship or conducting an occasional transaction.
(3) Verification of identity may be completed after the business (2) relationship has been established if— (a) it is essential not to interrupt normal business practice; and (b) money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring; and verification of identity is completed as soon as is prac- ticable once the business relationship has been estab- lished.
(c) Section 16(1)(a): amended, on 5 December 2013, by section 5 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).

17 Standard customer due diligence: other requirements A reporting entity must also obtain— (a) information on the nature and purpose of the proposed business relationship between the customer and the re- porting entity; and sufficient information to determine whether the cus- tomer should be subject to enhanced customer due dili- gence.
(b) Simplified customer due diligence 18 Circumstances when simplified customer due diligence applies (1) A reporting entity may conduct simplified customer due dili- gence if— 26 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 18 (a) (b) (c) it establishes a business relationship with one of the cus- tomers specified in subsection (2); or one of the customers specified in subsection (2) con- ducts an occasional transaction through the reporting entity; or a customer conducts a transaction or obtains a product or service specified in regulations through the reporting entity.
(2) The following are customers for the purposes of subsection (1): (a) a company that is listed on an exchange registered under Part 2B of the Securities Markets Act 1988: a government department named in Schedule 1 of the State Sector Act 1988: a local authority as defined in section 5 of the Local Government Act 2002: the New Zealand Police: the New Zealand Security Intelligence Service: any other entity or class of entities specified in regula- tions.
(b) (c) (d) (e) (f) (3) A reporting entity may also conduct simplified customer due diligence on a person who purports to act on behalf of a cus- tomer when— (a) (b) the reporting entity already has a business relationship with the customer at the time the person acts on behalf of the customer; and the reporting entity has conducted one of the specified types of customer due diligence on the customer in ac- cordance with this Act and regulations (if any).
For the avoidance of doubt, nothing in this subpart requires identification or verification of identity of a beneficial owner of a customer in respect of whom a reporting entity may conduct simplified customer due diligence.

Section 18(1)(c): amended, on 5 December 2013, by section 6 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).
(4) 27 Part 2 s 19 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 19 Simplified customer due diligence: identity requirements A reporting entity must obtain the following identity informa- tion in relation to a person acting on behalf of the customer: (a) (b) (c) (d) the person’s full name; and the person’s date of birth; and the person’s relationship to the customer; and any information prescribed by regulations.
20 Simplified customer due diligence: verification of identity requirements (1) A reporting entity must, according to the level of risk involved, verify the identity of a person acting on behalf of a customer and that person’s authority to act for the customer so that it is satisfied it knows who the person is and that the person has authority to act on behalf of the customer.
(3) (2) Verification of identity must be carried out before the business relationship is established or the occasional transaction is con- ducted or the person acts on behalf of the customer.

For the purposes of verifying a person’s authority to act in the circumstances described in section 18, a reporting entity may rely on an authority provided in an application form or other document provided to the reporting entity that shows a person’s authority to act or transact on an account.
21 Simplified customer due diligence: other requirements In the circumstances described in section 18(1)(a), a reporting entity must also obtain information on the nature and purpose of the proposed business relationship between the customer and the reporting entity.
Enhanced customer due diligence 22 Circumstances when enhanced customer due diligence applies (1) A reporting entity must conduct enhanced customer due dili- gence in accordance with sections 23 and 24 in the following circumstances: (a) if the reporting entity establishes a business relationship with a customer that is— 28 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 22 (i) (ii) (iii) a trust or another vehicle for holding personal assets: a non-resident customer from a country that has insufficient anti-money laundering and counter- ing financing of terrorism systems or measures in place: a company with nominee shareholders or shares in bearer form: (b) if a customer seeks to conduct an occasional transaction through the reporting entity and that customer is— (i) a trust or another vehicle for holding personal assets: a non-resident customer from a country that has insufficient anti-money laundering and counter- ing financing of terrorism systems or measures in place: a company with nominee shareholders or shares in bearer form: (ii) (iii) (c) if a customer seeks to conduct, through the reporting en- tity, a complex, unusually large transaction or unusual pattern of transactions that have no apparent or visible economic or lawful purpose: (d) when a reporting entity considers that the level of risk involved is such that enhanced due diligence should apply to a particular situation: any other circumstances specified in regulations.
(e) (2) A reporting entity must conduct enhanced customer due dili- gence in accordance with section 26 if— (a) it establishes a business relationship with a customer who it has determined is a politically exposed person; or a customer who it has determined is a politically ex- posed person seeks to conduct an occasional transaction through the reporting entity.
(b) (3) A reporting entity must conduct enhanced customer due dili- gence in accordance with sections 27 and 28 if it is an ordering institution, an intermediary institution, or a beneficiary insti- tution in relation to a wire transfer.
29 Part 2 s 23 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (4) A reporting entity must conduct enhanced customer due dili- gence in accordance with section 29 if it has, or proposes to have, a correspondent banking relationship.
(5) A reporting entity must conduct enhanced due diligence in ac- cordance with section 30 if— (a) it establishes a business relationship with a customer that involves new or developing technologies, or new or developing products, that might favour anonymity; or a customer seeks to conduct an occasional transaction through the reporting entity that involves new or devel- oping technologies, or new or developing products, that might favour anonymity.
(b) 23 Enhanced customer due diligence: identity requirements A reporting entity must, in relation to a person referred to in section 11(1), obtain the information required under section 15 and the following additional information: (a) information relating to the source of the funds or the wealth of the customer; and any additional information prescribed by regulations.
(b) 24 Enhanced customer due diligence: verification of identity requirements (1) A reporting entity must— (a) (b) conduct the verification of identity requirements for standard customer due diligence set out in section 16; and according to the level of risk involved, take reasonable steps to verify the information obtained under section 23(a); and (c) verify any other information prescribed by regulations.
Except as provided in subsection (3), a reporting entity must carry out verification of identity before establishing a business relationship or conducting an occasional transaction.
(3) Verification of identity may be completed after the business (2) relationship has been established if— (a) it is essential not to interrupt normal business practice; and 30 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 26 25 26 (1) (2) (3) (b) money laundering and financing of terrorism risks are effectively managed through procedures of transaction limitations and account monitoring; and verification of identity is completed as soon as is prac- ticable once the business relationship has been estab- lished.
(c) Enhanced customer due diligence: other requirements In the circumstances described in section 22(1)(a), 22(2)(a), and 22(5)(a), a reporting entity must also obtain information on the nature and purpose of the proposed business relation- ship between the customer and the reporting entity.
Politically exposed person The reporting entity must, as soon as practicable after estab- lishing a business relationship or conducting an occasional transaction, take reasonable steps to determine whether the customer or any beneficial owner is a politically exposed per- son.
If a reporting entity determines that a customer or beneficial owner with whom it has established a business relationship is a politically exposed person, then— (a) the reporting entity must have senior management ap- proval for continuing the business relationship; and the reporting entity must obtain information about the source of wealth or funds of the customer or beneficial owner and take reasonable steps to verify the source of that wealth or those funds.
(b) If a reporting entity determines that a customer or beneficial owner with whom it has conducted an occasional transaction is a politically exposed person, then the reporting entity must, as soon as practicable after conducting that transaction, take rea- sonable steps to obtain information about the source of wealth or funds of the customer or beneficial owner and verify the source of that wealth or those funds.
31 Part 2 s 27 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (c) (d) 27 Wire transfers: identity requirements (1) A reporting entity that is an ordering institution must iden- tify the originator of a wire transfer that is over the applicable threshold value by obtaining the following information: (a) (b) the originator’s address: the originator’s national identity number: the originator’s customer identification number: the originator’s place and date of birth; and the originator’s full name; and the originator’s account number or other identifying in- formation that may be prescribed and allows the trans- action to be traced back to the originator; and one of the following: (i) (ii) (iii) (iv) any information prescribed by regulations.
(2) However, if the wire transfer is a domestic wire transfer, a reporting entity that is an ordering institution may identify the originator by obtaining the originator’s account number or other identifying information that may be prescribed and al- lows the transaction to be traced back to the originator if the reporting entity that is the ordering institution is able to pro- vide the information specified in subsection (1)(a), (c), and (d) within 3 working days of a request being made by the benefi- ciary institution.
Regulations may be made under section 154(1)(c) exempting the reporting entity from the obligation to obtain some or all of the information set out in subsection (1) in relation to a specified transfer or transaction.

The information obtained by the reporting entity (the ordering institution under subsection (1) or (2), as the case may be) must accompany the wire transfer.
(4) (3) (5) A reporting entity that is a beneficiary institution must— (a) (b) use effective risk-based procedures for handling wire transfers that are not accompanied by all the informa- tion specified in subsection (1); and consider whether the wire transfers constitute a suspi- cious transaction.
(6) Any information about the originator obtained by a reporting entity that is an intermediary institution must be provided by 32 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 29 (7) that reporting entity to the beneficiary institution as soon as practicable.
For the purposes of this section, a domestic wire transfer is a wire transfer where the ordering institution, the intermedi- ary institution, and the beneficiary institution are all in New Zealand.

Section 27(6): replaced, on 5 December 2013, by section 7 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).
28 Wire transfers: verification of identity requirements (1) The ordering institution must, according to the level of risk involved,— (a) verify the originator’s identity so that the reporting en- tity is satisfied that the information obtained under sec- tion 27 is correct; and verify any other information prescribed by regulations.

(2) Verification of the originator’s identity must be carried out be- (b) fore the wire transfer is ordered.
Section 28(1)(a): replaced, on 5 December 2013, by section 8 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).
Correspondent banking relationships 29 (1) A financial institution (the correspondent) that has, or pro- poses to have, a correspondent banking relationship with a re- spondent financial institution (the respondent) must, accord- ing to the level of risk involved, conduct enhanced customer due diligence as set out in subsection (2) in relation to corre- spondent accounts that are used, or are proposed to be used, for payments to, or receipts from, foreign financial institutions.
The correspondent must— (a) (2) gather enough information about the respondent to understand fully the nature of the respondent’s busi- ness; and determine from publicly available information the repu- tation of the respondent and whether and to what extent the respondent is supervised for AML/CFT purposes, including whether the respondent has been subject to a (b) 33 Part 2 s 29 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (c) (d) (e) (f) money laundering or financing of terrorism investiga- tion or regulatory action; and assess the respondent’s anti-money laundering and countering financing of terrorism controls to ascertain that those controls are adequate and effective; and have approval from its senior management before estab- lishing a new correspondent banking relationship; and document the respective AML/CFT responsibilities of the correspondent and the respondent; and be satisfied that, in respect of those of the respondent’s customers who have direct access to accounts of the correspondent, the respondent― (i) has verified the identity of, and conducts ongoing monitoring in respect of, those customers; and is able to provide to the correspondent, on re- quest, the documents, data, or information ob- tained when conducting the relevant customer due diligence and ongoing customer due dili- gence; and (ii) (g) meet any other requirements prescribed by regulations and that apply to correspondent banking relationships.
For the purposes of this Act, a correspondent banking re- lationship means a relationship that involves the provision of banking services by a financial institution (the correspondent) to another financial institution (the respondent) if— (a) the correspondent carries on an activity or business at or through a permanent establishment of the correspon- dent in a particular country; and the respondent carries on an activity or business at or through a permanent establishment of the respondent in another country; and the correspondent banking relationship relates, in whole or in part, to those permanent establishments; and the relationship is not of a kind specified in regulations; and the banking services are not of a kind specified in regu- lations.
(b) (c) (d) (e) (3) 34 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 31 30 New or developing technologies, or products, that might favour anonymity Before a reporting entity establishes a business relationship or conducts an occasional transaction that involves new or devel- oping technologies, or new or developing products, that might favour anonymity, the reporting entity must, in addition to the requirements in sections 15 and 16,— (a) take any additional measures that may be needed to mitigate and manage the risk of new or developing tech- nologies, or new or developing products, that might favour anonymity from being used in the commission of a money laundering offence or for the financing of terrorism; and (b) meet any other requirements prescribed by regulations and that apply to the particular technology or product.
Ongoing customer due diligence and account monitoring 31 (1) Ongoing customer due diligence and account monitoring This section applies to a business relationship between a re- porting entity and a customer.
(2) A reporting entity must conduct ongoing customer due dili- gence and undertake account monitoring in order to— (a) ensure that the business relationship and the transac- tions relating to that business relationship are consis- tent with the reporting entity’s knowledge about the cus- tomer and the customer’s business and risk profile; and identify any grounds for reporting a suspicious transac- tion under section 40(1)(b).
(b) (3) When conducting ongoing customer due diligence and under- taking account monitoring, the reporting entity must have re- gard to— (a) the type of customer due diligence conducted when the business relationship with the customer was estab- lished; and the level of risk involved.
(b) 35 Part 2 s 32 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (4) When conducting ongoing customer due diligence and under- taking account monitoring, a reporting entity must do at least the following: (a) regularly review the customer’s account activity and transaction behaviour; and regularly review any customer information obtained under sections 15, 17, 19, 21, 23, 25, 26, 27, 29, and 30, or, in relation to an existing customer, any cus- tomer information the reporting entity holds about the customer; and anything prescribed by regulations.
(b) (c) Reliance on third parties 32 Reliance on member of designated business group (1) A reporting entity (member A) that is a member of a desig- nated business group may— (a) rely on another member of the group (member B) to conduct any customer due diligence procedures required for customer due diligence under this Act or regulations as long as— (i) any identity information is given to member A by member B before member A establishes a busi- ness relationship or an occasional transaction is conducted; and any verification information is given to member A by member B as soon as practicable, but no later than 5 working days, after the business rela- tionship is established or the occasional transac- tion is conducted: (ii) (b) (c) adopt that part of an AML/CFT programme of another member of the group that relates to record keeping, ac- count monitoring, ongoing customer due diligence, and annual reporting and share and use the procedures, poli- cies, and controls relating to those parts of the pro- gramme subject to any conditions prescribed by regu- lations: use another member of the group’s risk assessment if that risk assessment is relevant to member A’s business: 36 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 33 (d) make a suspicious transaction report on behalf of any other member or all members of the designated business group.
(2) Despite subsection (1), a reporting entity, and not the member of the designated business group relied on by the reporting entity, is responsible for ensuring that it is complying with this Act and regulations.
(3) An AML/CFT supervisor for a reporting entity that is part of a designated business group may require the reporting en- tity to undertake its own risk assessment or develop its own AML/CFT programme if the AML/CFT supervisor is of the view that the risk assessment or AML/CFT programme being, or proposed to be, relied on by the reporting entity is not ap- propriate for that entity.

This section is subject to section 36, which relates to the pro- tection of personal information.
Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 36(4) (Aust) (4) 33 (1) (2) Reliance on other reporting entities or persons in another country Subject to the conditions in subsection (2), a reporting entity may rely on another person (who is not an agent) to conduct the customer due diligence procedures required for customer due diligence under this Act or regulations.
The conditions are that— (a) the person being relied on is either— (i) (ii) a reporting entity; or a person who is resident in a country with suf- ficient anti-money laundering and countering financing of terrorism systems and measures in place and who is supervised or regulated for AML/CFT purposes; and (b) (c) the person has a business relationship with the customer concerned; and the person has conducted relevant customer due dili- gence procedures to at least the standard required by this Act and regulations and has provided to the report- ing entity— 37 Part 2 s 34 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (i) (ii) relevant identity information before the reporting entity establishes a business relationship or an occasional transaction is conducted; and relevant verification information as soon as prac- ticable, but no later than 5 working days, after the business relationship is established or the oc- casional transaction is conducted; and (d) (e) the person consents to conducting the customer due dili- gence procedures for the reporting entity and to provid- ing all relevant information to the reporting entity; and any other conditions prescribed by regulations are com- plied with.
(3) Despite subsection (1), a reporting entity relying on a third party to conduct the customer due diligence procedure, and not the person carrying out the customer due diligence procedure, is responsible for ensuring that customer due diligence is car- ried out in accordance with this Act.
Reliance on agents Subject to any conditions that may be prescribed by regula- tions, a reporting entity may authorise a person to be its agent and rely on that agent to conduct the customer due diligence procedures and obtain any information required for customer due diligence under this Act or regulations.
Use of information obtained from third party conducting customer due diligence Information obtained by a third party conducting customer due diligence under sections 32 to 34 for a reporting entity may only be used by that third party for the purpose of complying with this Act and regulations.
Protection of personal information and designated business groups This section applies to personal information that is either— (a) identity or verification information received for the pur- poses of section 32(1)(a); or information received for 32(1)(b).
the purposes of section (b) 34 35 36 (1) 38 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 37 (3) (2) Any information supplied by any member of a designated business group to another member of that group must be subject to privacy protections at least equivalent to those set out in privacy principles 5 to 11 in section 6 of the Privacy Act 1993.
Each member of the designated business group must agree, in writing, to comply with privacy principles 5 to 11 in section 6 of the Privacy Act 1993 or their equivalent if the member is resident overseas.

The entity that provides information to another member of its designated business group remains responsible for the use or disclosure of that information.
(4) (5) A reporting entity may use or disclose information to which (b) this section applies only as follows: (a) it may use identity and verification information received for the purposes of section 32(1)(a) in a suspicious transactions report: it may disclose information for the purposes of section 32(1)(b) to another member of the designated business group unless such disclosure is likely to result in a sus- picious transaction report being filed in an overseas jur- isdiction by the member to whom the information is dis- closed.
Prohibitions 37 Prohibitions if customer due diligence not conducted If, in relation to a customer, a reporting entity is unable to con- duct customer due diligence in accordance with this subpart, the reporting entity— (a) must not establish a business relationship with the cus- tomer; and (b) must terminate any existing business relationship with the customer; and (c) must not carry out an occasional transaction with or for the customer; and (d) must consider whether to make a suspicious transac- tions report; and 39 Part 2 s 38 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (e) may disclose the possibility of making a suspicious transaction report only to a person referred to in section 46(2).
38 Prohibition on false customer names and customer anonymity (1) A reporting entity must not,— (a) knowingly or recklessly, set up a facility for a customer on the basis of customer anonymity: (b) without lawful justification or reasonable excuse, set up a facility for a customer under a false customer name.
(2) Subsection (1) does not apply to a facility— (a) that has a number or other identifier allocated to it and the customer and any person who is authorised to act on behalf of the customer in respect of the facility has had their identity verified in accordance with the relevant customer due diligence requirements; or that has been set up for the Commissioner or for the New Zealand Security Intelligence Service for law en- forcement purposes.
(b) Section 38(2)(a): amended, on 12 December 2012, by section 5 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2012 (2012 No 98).
39 Prohibition on establishing or continuing business relationship involving shell bank (1) A reporting entity must not establish or continue a business re- lationship with, or allow an occasional transaction to be con- ducted through it by,— a shell bank; or (a) a financial institution that has a correspondent banking (b) relationship with a shell bank.
For the purposes of subsection (1), a shell bank is a corpor- ation that— (a) (b) is incorporated in a foreign country; and is authorised to carry on banking business in its country of incorporation; and does not have a physical presence in its country of in- corporation; and (c) (2) 40 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 40 (d) is not an affiliate of another corporation that— (i) (ii) is incorporated in a particular country; and is authorised to carry on banking business in its country of incorporation; and is sufficiently supervised and monitored in carry- ing on its banking business; and has a physical presence in its country of incorp- oration.
(iii) (iv) (3) (4) For the purposes of paragraph (d) of the definition of shell bank in subsection (2), a corporation is affiliated with another corporation only if— (a) the corporation is a subsidiary of the other corporation; or both corporations are under common effective control; or both corporations are declared to be affiliated in accord- ance with regulations (if any).
(b) (c) For the purposes of the definition of shell bank in subsection (2), a corporation has a physical presence in a country if, and only if,— (a) the corporation carries on banking business at a place in that country; and banking operations of the corporation are managed and conducted from that place.
(b) Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 ss 15, 95 (Aust) Subpart 2—Suspicious transaction reports 40 Reporting entities to report suspicious transactions (1) Despite any other enactment or any rule of law, but subject to section 42 of this Act and to section 44(4) of the Terrorism Suppression Act 2002, this section applies if— (a) a person conducts or seeks to conduct a transaction through a reporting entity; and the reporting entity has reasonable grounds to suspect that the transaction or proposed transaction is or may be— (i) relevant to the investigation or prosecution of any person for a money laundering offence; or (b) 41 Part 2 s 41 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (ii) (iii) (iv) (v) relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Sup- pression Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Re- covery) Act 2009; or relevant to the investigation or prosecution of a serious offence within the meaning of section 243(1) of the Crimes Act 1961.
(2) If this section applies, the reporting entity must, as soon as practicable, but no later than 3 working days after forming its suspicion, report the transaction or proposed transaction to the Commissioner, in accordance with section 41.

(3) Nothing in subsection (2) requires any lawyer to disclose any privileged communication (as defined in section 42).
Compare: 1996 No 9 ss 15(1), 19(1) Nature of suspicious transaction report Except as provided in subsection (2), a report under section 40 must— (a) (b) (c) be in the prescribed form (if any); and contain the details prescribed by regulations; and contain a statement of the grounds on which the re- porting entity holds the suspicions referred to in section 40(1)(b); and be signed by a person authorised by the reporting entity to sign suspicious transaction reports (unless the report is forwarded by email or another similar means of com- munication); and be forwarded, in writing, to the Commissioner— (i) (d) (e) by way of secure electronic transmission by a means specified or provided by the Commis- sioner for this purpose; or by another means (including, without limitation, by way of transmission by fax or email) that may be agreed from time to time between the Com- missioner and the reporting entity concerned.
(ii) 41 (1) 42 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 42 (2) However, if the urgency of the situation requires, a suspicious transaction report may be made orally to any Police employee authorised for the purpose by the Commissioner, but in any such case the reporting entity must, as soon as practicable, but no later than 3 working days, forward to the Commissioner a suspicious transaction report that complies with the require- ments in subsection (1).
The Commissioner may confer the authority to receive a sus- picious transaction report under subsection (2) on— (a) (b) (c) any specified Police employee; or Police employees of any specified rank or class; or any Police employee or Police employees for the time being holding any specified office or specified class of offices.
(3) Compare: 1996 No 9 s 15(2)–(4) 42 (1) Privileged communication defined For the purposes of section 40(3), a communication is a priv- ileged communication only if— (a) it is a confidential communication, whether oral or writ- ten, passing between— (i) (ii) (iii) a lawyer in his or her professional capacity and another lawyer in that capacity: a lawyer in his or her professional capacity and his or her client: any person described in subparagraph (i) or (ii) and the agent of the other person described in that subparagraph, or between the agents of both the persons described, either directly or indirectly; and (b) (c) it is made or brought into existence for the purpose of obtaining or giving legal advice or assistance; and it is not made or brought into existence for the purpose of committing or furthering the commission of some illegal or wrongful act.
(2) However, where the information consists wholly or partly of, or relates wholly or partly to, the receipts, payments, income, expenditure, or financial transactions of a specified person (whether a lawyer, his or her client, or any other person), it 43 Part 2 s 43 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 is not a privileged communication if it is contained in, or comprises the whole or part of, any book, account, statement, or other record prepared or kept by the lawyer in connection with a trust account of the lawyer within the meaning of section 6 of the Lawyers and Conveyancers Act 2006.
For the purposes of this section, references to a lawyer include a firm in which he or she is a partner or is held out to be a partner.
Compare: 1996 No 9 s 19(2)–(4) (3) Auditors may report suspicious transactions 43 (1) Despite any other enactment or any rule of law, this section ap- plies to a person who, in the course of carrying out the duties of that person’s occupation as an auditor, has reasonable grounds to suspect, in relation to any transaction, that the transaction is— (a) (b) (c) (d) (e) relevant to the investigation or prosecution of any per- son for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Suppres- sion Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 2009; or relevant to the investigation or prosecution of a ser- ious offence within the meaning of section 243(1) of the Crimes Act 1961.
(2) A person may report a transaction referred to in subsection (1) to the Commissioner.

Compare: 1996 No 9 s 16 Protection of persons reporting suspicious transactions Subsection (2) applies to a person who— (a) discloses or supplies any information in any suspicious transaction report; or supplies any information in connection with any suspi- cious transaction report, whether at the time the report is made or afterwards.
(b) 44 (1) 44 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 45 (2) No civil, criminal, and disciplinary proceedings lie against a person to whom subsection (1) applies— (a) in respect of the disclosure or supply, or the manner of the disclosure or supply, by that person of the informa- tion referred to in that subsection; or for any consequences that follow from the disclosure or supply of that information.
(b) (3) If any information is reported under section 43 to any Police employee by any person, no civil, criminal, or disciplinary proceedings lie against that person— (a) in respect of the disclosure or supply, or the manner of the disclosure or supply, of that information by that person; or for any consequences that follow from the disclosure or supply of that information.

(b) (4) However, subsections (2) and (3) do not apply if the informa- tion was disclosed or supplied in bad faith.
(5) Nothing in this section applies in respect of proceedings for an offence under any of sections 92 to 97.
Compare: 1996 No 9 s 17 45 (1) Immunity from liability for disclosure of information relating to money laundering transactions This section applies if— (a) a person does any act that would constitute, or the per- son believes would constitute, an offence against sec- tion 243(2) or (3) of the Crimes Act 1961; and in respect of the doing of that act, that person would have, by virtue of section 244(a) of the Crimes Act 1961, a defence to a charge under section 243(2) or (3) of that Act; and that person discloses, to any Police employee, any in- formation relating to a money laundering transaction (within the meaning of section 243(4) of the Crimes Act 1961), being a money laundering transaction that con- stitutes (in whole or in part), or is connected with or related to, the act referred to in paragraph (a); and that information is so disclosed, in good faith, for the purpose of, or in connection with, the enforcement or (b) (c) (d) 45 Part 2 s 46 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (2) 46 (1) (e) intended enforcement of any enactment or provision re- ferred to in section 244(a) of the Crimes Act 1961; and that person is otherwise under any obligation (whether arising by virtue of any enactment or any rule of law or any other instrument) to maintain secrecy in relation to, or not to disclose, that information.
If this section applies, then, without limiting section 44 and despite that the disclosure would otherwise constitute a breach of that obligation of secrecy or non-disclosure, the disclosure by that person, to that Police employee, of that information is not a breach of that obligation of secrecy or non-disclosure or (where applicable) of any enactment by which that obligation is imposed.
Compare: 1996 No 9 s 18 Disclosure of information relating to suspicious transaction reports This section and section 47 apply in respect of the following information: (a) (b) any suspicious transaction report: any information the disclosure of which will identify, or is reasonably likely to identify, any person— (i) as a person who, in his or her capacity as an offi- cer or employee of a reporting entity, has han- dled a transaction in respect of which a suspi- cious transaction report was made; or as a person who has prepared a suspicious trans- action report; or as a person who has made a suspicious transac- tion report: (ii) (iii) (c) any information that discloses, or is reasonably likely to disclose, the existence of a suspicious transaction re- port.
(2) A reporting entity must not disclose information to which this section relates to any person except— (a) a Police employee who is authorised by the Commis- sioner to receive the information; or the reporting entity’s AML/CFT supervisor; or (b) 46 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 46 (c) (d) (e) an officer or employee of the reporting entity, for any purpose connected with the performance of that per- son’s duties; or a barrister or solicitor, for the purpose of obtaining legal advice or representation in relation to the matter; or another member of a designated business group of which the reporting entity is a member to the extent necessary to decide whether to make a suspicious transaction report.
(3) A Police employee may only disclose information to which this section applies for law enforcement purposes.

(4) An AML/CFT supervisor may only disclose information to which this section applies to the Police for law enforcement purposes.

(5) A person to whom a function or power has been delegated under section 134 may disclose information to which this sec- tion applies only to the AML/CFT supervisor that made the delegation.
(6) A person (person A) referred to in subsection (2)(c) to whom disclosure of any information to which that subsection applies has been made must not disclose that information except to another person of the kind referred to in that subsection for the purpose of— (a) (b) the performance of person A’s duties; or obtaining legal advice or representation in relation to the matter.
(7) A person referred to in subsection (2)(d) to whom disclosure of any information to which that subsection applies has been made must not disclose that information except to a person of the kind referred to in that subsection for the purpose of giving legal advice or making representations in relation to the matter.

(8) Any other person who has information to which this section applies may only disclose that information to the Police for law enforcement purposes.
Compare: 1996 No 9 s 20 47 Part 2 s 47 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Disclosure of information in proceedings 47 (1) No person may disclose, in any judicial proceeding (within the meaning of section 108 of the Crimes Act 1961), any in- formation to which this section applies unless the Judge or, as the case requires, the person presiding at the proceeding is sat- isfied that the disclosure of the information is necessary in the interests of justice.
(2) Nothing in this section prohibits the disclosure of any informa- tion for the purposes of the prosecution of any offence against section 93 or 94.
Compare: 1996 No 9 s 21 Disclosure of personal information relating to employees or senior managers An AML/CFT supervisor that has, in the performance and ex- ercise of its functions and powers under this Act, obtained per- sonal information about employees or senior managers may disclose that information to another government agency for the following purposes if the AML/CFT supervisor is satisfied that the agency has a proper interest in receiving the informa- tion: (a) (b) law enforcement purposes: the detection, investigation, and prosecution of any of- fence under the following Acts: the Companies Act 1993: (i) the Financial Advisers Act 2008: (ii) the Financial Service Providers (Registration and (iii) Dispute Resolution) Act 2008: the Gambling Act 2003: the Reserve Bank of New Zealand Act 1989: the Securities Act 1978: the Securities Markets Act 1988.
(iv) (v) (vi) (vii) Subpart 3—Record keeping Obligation to keep transaction records In relation to every transaction that is conducted through a reporting entity, the reporting entity must keep those records 48 49 (1) 48 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 50 that are reasonably necessary to enable that transaction to be readily reconstructed at any time.
(2) Without limiting subsection (1), records must contain the fol- lowing information: (a) (b) (c) (d) (e) (f) the nature of the transaction: the amount of the transaction and the currency in which it was denominated: the date on which the transaction was conducted: the parties to the transaction: if applicable, the facility through which the transaction was conducted, and any other facilities (whether or not provided by the reporting entity) directly involved in the transaction: the name of the officer or employee or agent of the re- porting entity who handled the transaction, if that offi- cer, employee, or agent— (i) has face-to-face dealings in respect of the trans- action with any of the parties to the transaction; and has formed a suspicion (of the kind referred to in section 40(1)(b)) about the transaction: (ii) (g) any other information prescribed by regulations.
(3) A reporting entity must retain the records kept by that report- ing entity, in accordance with this section, in relation to a trans- action for— (a) a period of at least 5 years after the completion of that transaction; or any longer period that the AML/CFT supervisor for the reporting entity, or the Commissioner, specifies.
(b) Compare: 1996 No 9 s 29 50 (1) Obligation to keep identity and verification records In respect of each case in which a reporting entity is required, under subpart 1 of this Part, to identify and verify the identity of a person, the reporting entity must keep those records that are reasonably necessary to enable the nature of the evidence used for the purposes of that identification and verification to be readily identified at any time.
49 Part 2 s 51 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (2) Without limiting subsection (1), those records may com- prise— (a) (b) a copy of the evidence so used; or if it is not practicable to retain that evidence, any in- formation as is reasonably necessary to enable that evi- dence to be obtained.
(3) A reporting entity must retain the records kept by that report- ing entity for,— (a) (b) (c) in the case of records relating to the identity and verifi- cation of the identity of a person in relation to establish- ing a business relationship, a period of at least 5 years after the end of that business relationship; or in the case of records relating to the identity and verifi- cation of the identity of a person in relation to conduct- ing an occasional transaction, a period of at least 5 years after the completion of that occasional transaction; or in the case of records relating to the identity and veri- fication of the identity of an originator in relation to a wire transfer,— (i) if the wire transfer is conducted by a customer with whom the reporting entity has a business relationship, a period of at least 5 years after the end of that business relationship; or if the wire transfer is an occasional transaction, a period of at least 5 years after the completion of the wire transfer.
(ii) Compare: 1996 No 9 s 30 Obligation to keep other records 51 (1) A reporting entity must keep the following records in addition to the records referred to in sections 49 and 50: (a) records that are relevant to the establishment of the busi- ness relationship; and records relating to risk assessments, AML/CFT pro- grammes, and audits; and any other records (for example, account files, business correspondence, and written findings) relating to, and obtained during the course of, a business relationship that are reasonably necessary to establish the nature and (b) (c) 50 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 54 purpose of, and activities relating to, the business rela- tionship.
(2) The records must be kept in accordance with section 52 for a period of at least 5 years after the end of the business relation- ship.

(3) A reporting entity must make records relating to risk assess- ments, AML/CFT programmes, and audits available to its AML/CFT supervisor on request.
Compare: 1996 No 9 s 31 52 How records to be kept Records required by this subpart to be kept by a reporting en- tity must— (a) be kept either in written form in the English language, or so as to enable the records to be readily accessible and readily convertible into written form in the English language; and be kept in the manner prescribed by regulations (if any).
(b) Compare: 1996 No 9 s 32 53 When records need not be kept (1) Nothing in this subpart requires the retention of any records kept by a reporting entity that has been liquidated and finally dissolved except as provided in subsection (2).

The High Court may, in relation to a reporting entity that is being or has been liquidated, make an order requiring that any or all of the records referred to in sections 50 and 51 be kept for any period it thinks fit.
Compare: 1996 No 9 s 33 (2) 54 (1) Destruction of records Subject to subsection (2), a reporting entity must take all prac- ticable steps to ensure that every record retained by that report- ing entity under this subpart, and every copy of that record, is destroyed as soon as practicable after the expiry of the period for which the reporting entity is required to retain that record.
51 Part 2 s 55 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (2) Nothing in this section requires the destruction of any record, or any copy of any record, in any case where there is a lawful reason for retaining that record.
(3) Without limiting subsection (2), there is a lawful reason for retaining a record if the retention of that record is necessary— in order to comply with the requirements of any other (a) enactment; or to enable a reporting entity to carry on its business; or for the purposes of the detection, investigation, or pros- ecution of any offence.
(b) (c) Compare: 1996 No 9 s 34 55 Other laws not affected Nothing in this subpart limits or affects any other enactment that requires any reporting entity to keep or retain a record.
Compare: 1996 No 9 s 35 Subpart 4—Compliance with AML/CFT requirements 56 Reporting entity must have AML/CFT programme and AML/CFT compliance officer (1) A reporting entity must establish, implement, and maintain a compliance programme (an AML/CFT programme) that includes internal procedures, policies, and controls to— (a) detect money laundering and the financing of terrorism; and (b) manage and mitigate the risk of money laundering and financing of terrorism.
(3) (2) A reporting entity must designate an employee as an AML/CFT compliance officer to administer and maintain its AML/CFT programme.

In the case of a reporting entity that does not have employ- ees, the reporting entity must appoint a person to act as its AML/CFT compliance officer.

The AML/CFT compliance officer must report to a senior manager of the reporting entity.
(4) 52 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 57 57 Minimum requirements for AML/CFT programmes A reporting entity’s AML/CFT programme must be based on the risk assessment undertaken in accordance with section 58 and include adequate and effective procedures, policies, and controls for— (a) vetting— (i) (ii) (iii) senior managers: the AML/CFT compliance officer: any other employee that is engaged in AML/CFT related duties; and (b) (c) (d) (e) (f) (g) training on AML/CFT matters for the following em- ployees: (i) (ii) (iii) senior managers: the AML/CFT compliance officer: any other employee that is engaged in AML/CFT related duties; and complying with customer due diligence requirements (including ongoing customer due diligence and account monitoring); and reporting suspicious transactions; and record keeping; and setting out what the reporting entity needs to do, or con- tinue to do, to manage and mitigate the risks of money laundering and the financing of terrorism; and examining, and keeping written findings relating to,— (i) (ii) complex or unusually large transactions; and unusual patterns of transactions that have no ap- parent economic or visible lawful purpose; and any other activity that the reporting entity regards as being particularly likely by its nature to be related to money laundering or the financing of terrorism; and (iii) (h) monitoring, examining, and keeping written findings re- lating to business relationships and transactions from or in countries that do not have or have insufficient anti-money laundering or countering financing of ter- rorism systems in place and have additional measures for dealing with or restricting dealings with such coun- tries; and 53 Part 2 s 58 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (i) (j) (k) (l) preventing the use, for money laundering or the finan- cing of terrorism, of products (for example, the mis- use of technology) and transactions (for example, non- face-to-face business relationships or transactions) that might favour anonymity; and determining when enhanced customer due diligence is required and when simplified customer due diligence might be permitted; and providing when a person who is not the reporting entity may, and setting out the procedures for the person to, conduct the relevant customer due diligence on behalf of the reporting entity; and monitoring and managing compliance with, and the in- ternal communication of and training in, those proced- ures, policies, and controls.
Risk assessment Before conducting customer due diligence or establishing an AML/CFT programme, a reporting entity must first undertake an assessment of the risk of money laundering and the finan- cing of terrorism (a risk assessment) that it may reasonably expect to face in the course of its business.
In assessing the risk, the reporting entity must have regard to the following: (a) (b) (c) the nature, size, and complexity of its business; and the products and services it offers; and the methods by which it delivers products and services to its customers; and the types of customers it deals with; and the countries it deals with; and the institutions it deals with; and any applicable guidance material produced by AML/CFT supervisors or the Commissioner relating to risk assessments; and any other factors that may be provided for in regula- tions.
(d) (e) (f) (g) (h) The risk assessment must be in writing and— (a) identify the risks faced by the reporting entity in the course of its business; and 58 (1) (2) (3) 54 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 59 (b) (c) describe how the reporting entity will ensure that the assessment remains current; and enable the reporting entity to determine the level of risk involved in relation to relevant obligations under this Act and regulations.
59 Review and audit of risk assessment and AML/CFT programme (1) A reporting entity must review its risk assessment and AML/CFT programme to— (a) (b) ensure the risk assessment and AML/CFT programme remain current; and identify any deficiencies in the effectiveness of the risk assessment and the AML/CFT programme; and (c) make any changes to the risk assessment or AML/CFT programme identified as being necessary under para- graph (b).
(2) A reporting entity must ensure its risk assessment and AML/CFT programme are audited every 2 years or at any other time at the request of the relevant AML/CFT supervisor.

The audit must be carried out by an independent person ap- pointed by the reporting entity who is appropriately qualified to conduct the audit.
(3) (a) (4) A person appointed to conduct an audit is not required to be— a chartered accountant within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996; or qualified to undertake financial audits.

(b) (5) A person appointed to conduct an audit must not have been involved in— (a) the establishment, implementation, or maintenance of the reporting entity’s AML/CFT programme: the undertaking of the reporting entity’s risk assess- ment.
(b) (6) The audit of the risk assessment is limited to an audit of whether the reporting entity’s risk assessment fulfils the requirements in section 58(3).

55 Part 2 s 60 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (7) A reporting entity must provide a copy of any audit to its AML/CFT supervisor on request.

Section 59(4)(a): amended, on 7 July 2010, by section 10 of the New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74).
60 (1) Annual AML/CFT report The reporting entity must prepare an annual report on its risk assessment and AML/CFT programme.

(2) An annual report must— (a) (b) be in the prescribed form; and take into account the results and implications of the audit required by section 59(2); and (c) contain any information prescribed by regulations.

The reporting entity must provide the annual report to its AML/CFT supervisor at a time appointed by the AML/CFT supervisor.
The AML/CFT supervisor must give the reporting entity rea- sonable notice of the requirement to provide the annual report.
(3) (4) 61 Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements (1) A reporting entity must ensure that its branches and sub- sidiaries that are in a foreign country apply, to the extent permitted by the law of that country, measures broadly equiva- lent to those set out in this Act and regulations with regard to the requirements for customer due diligence (including on- going customer due diligence), risk assessments, AML/CFT programmes, and record keeping.
If the law of the foreign country does not permit the application of those equivalent measures by the branch or the subsidiary located in that country, the reporting entity must— (a) (b) inform its AML/CFT supervisor accordingly; and take additional measures to effectively handle the risk of a money laundering offence and the financing of ter- rorism.
(2) (3) A reporting entity must communicate (where relevant) the policies, procedures, and controls that it establishes, imple- 56 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 63 ments, and maintains in accordance with this subpart to its branches and subsidiaries that are outside New Zealand.
Subpart 5—Codes of practice 62 Interpretation In this Part, unless the context otherwise requires,— code of practice means a code of practice approved by the responsible Minister under section 64, as amended from time to time proposed code of practice means a document prepared under section 63(1).
63 AML/CFT supervisors to prepare codes of practice for relevant sectors (1) An AML/CFT supervisor must, if directed to do so by the Min- ister responsible for that AML/CFT supervisor (the respon- sible Minister), prepare— (a) 1 or more codes of practice for the sector of activity of the reporting entities for which it is the supervisor under section 130 or in respect of different reporting entities specified by the responsible Minister: an instrument that amends a code of practice or revokes the whole or any provision of a code of practice pre- pared under paragraph (a).
(b) (2) The purpose of a code of practice is to provide a statement of practice that assists reporting entities to comply with their obligations under this Act and regulations.
(3) A direction under subsection (1) may (without limitation)— (a) (b) (c) relate generally to the obligations imposed on the rele- vant reporting entities by or under this Act or regula- tions or specify particular aspects of those obligations that are to be covered by the code of practice: specify the amendments to be made or their intended effect, and specify the extent of the revocation to be made: indicate the date by which the responsible Minister wishes the code of practice to be provided to him or her: 57 Part 2 s 64 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (d) the include details about AML/CFT supervisor is required to provide under section 64(1)(a).
the recommendation that (4) An AML/CFT supervisor must comply with a direction under subsection (1) as soon as practicable.

(5) No code of practice has legal effect until approved by the re- sponsible Minister under section 64(6).
64 (1) (2) (3) Procedure for approval and publication of codes of practice The responsible Minister must not approve a code of practice prepared by an AML/CFT supervisor unless— (a) the AML/CFT supervisor has made a recommendation that the Minister should approve the code of practice; and the AML/CFT supervisor has consulted the persons and organisations that the Minister thinks appropriate, hav- ing regard to the subject matter of the proposed code of practice.
(b) In consulting under subsection (1)(b), the AML/CFT super- visor must ensure that— (a) a copy of the proposed code of practice or a summary of its contents, in hard copy or electronic format, is pro- vided to the persons and organisations being consulted; and the persons and organisations being consulted have at least 20 working days to make submissions or repre- sentations about the proposed code of practice.
The responsible Minister may direct the AML/CFT supervisor to reconsider any aspect of the proposed code of practice and to make any amendments that the Minister considers necessary.
(b) (4) Despite subsection (3),— (a) (b) if the AML/CFT supervisor does not amend the pro- posed code of practice as directed by the Minister or within the time specified by the Minister, the Minister may make those amendments: the Minister may, after consultation with the AML/CFT supervisor, make any further amendments to the pro- 58 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 67 posed code of practice that he or she considers neces- sary.
(5) (6) The responsible Minister must— (a) (b) (c) approve the proposed code of practice as prepared by the AML/CFT supervisor; or approve the proposed code of practice as amended by the AML/CFT supervisor; or approve the proposed code of practice as amended by the Minister after consultation with the AML/CFT supervisor.
The responsible Minister approves a code of practice by notice in the Gazette, and the notice— (a) must either set out the code of practice or state where copies of the code of practice in hard copy or electronic format may be obtained or viewed: is a disallowable instrument, but not a legislative in- strument, for the purposes of the Legislation Act 2012 and must be presented to the House of Representatives under section 41 of that Act.
(b) Section 64(6)(b): replaced, on 5 August 2013, by section 77(3) of the Legisla- tion Act 2012 (2012 No 119).

Amendment and revocation of codes of practice 65 (1) A code of practice may be amended or revoked in the same (2) 66 manner as that in which it was made.

Sections 63, 64, 66, and 67 apply with the necessary modifi- cations to the amendment or revocation of a code of practice.
Proof of codes of practice Publication in the Gazette of a notice under section 64(6) is conclusive evidence that the requirements of sections 64(1) to (5) and 65 have been complied with in respect of the approval specified in the notice.
Legal effect of codes of practice 67 (1) A reporting entity complies with an obligation imposed on it by or under this Act or regulations by— (a) complying with those provisions of a code of practice that state a means of satisfying the obligation; or 59 Part 2 s 68 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (b) complying with the obligation by some other equally effective means.
(3) (2) However, a reporting entity may not rely on subsection (1)(b) as a defence to an act or omission on its part unless it has, by notice in writing given before the act or omission occurred, advised the AML/CFT supervisor that it has opted out of com- pliance with the code of practice and intends to satisfy its obli- gations by some other equally effective means.
If a person is charged with an offence in respect of a failure to comply with any provision of this Act, a court must, in de- termining whether that person has failed to comply with the provision, have regard to any code of practice in force under section 64(6) at the time of the alleged failure relating to mat- ters of the kind to which the provision relates.
If an application for an injunction against a person has been made under this Act, a court must, in determining whether to grant the injunction, have regard to any code of practice in force under section 64(6).
If an application for a pecuniary penalty against a person has been made under this Act, a court must, in determining whether to impose a pecuniary penalty, have regard to any code of practice in force under section 64(6) at the time the person engaged in conduct that constituted the relevant civil liability act.
(5) (4) Subpart 6—Cross-border transportation of cash Reports about movement of cash into or out of New Zealand 68 (a) (1) A person must not move cash into or out of New Zealand if— the total amount of the cash is more than the applicable threshold value; and the person has not given a report in respect of the move- ment of that cash in accordance with this subpart; and the movement of that cash is not exempted under this Act or regulations (if any).
(b) (c) 60 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 2 s 71 (2) (3) 69 70 For the purposes of this Act, a person moves cash into New Zealand if the person brings or sends the cash into New Zealand.

For the purposes of this Act, a person moves cash out of New Zealand if the person takes or sends the cash out of New Zealand.
Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 ss 53(3), 57(2), 58 (Aust) Reports about receipt of cash from outside New Zealand A person must not receive cash moved to the person from out- side New Zealand if— (a) the total amount of the cash is more than the applicable threshold value; and the person has not given a report in respect of the move- ment of that cash in accordance with this subpart; and the movement of that cash is not exempted under this Act or regulations (if any).
(b) (c) Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 55(3) (Aust) Reporting requirements A report under this subpart must— (a) (b) (c) be in writing in the prescribed form; and contain the prescribed information; and be completed in accordance with regulations (if any); and be provided to a Customs officer,— (i) in the case of accompanied cash, at the same time as a departure card is presented in accordance with section 126(2) of the Immigration Act 1987: in the case of unaccompanied cash, before the cash leaves New Zealand.
(ii) (d) Compare: 1996 No 9 s 37; Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 55(5) (Aust) 71 (1) Information to be forwarded to Commissioner If a report is made to a Customs officer under this subpart, that officer must, as soon as practicable, forward the report to the Commissioner.
61 Part 3 s 72 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (2) (3) (4) If, in the course of conducting a search under this Act, a Cus- toms officer discovers any cash in respect of which a report is required to be made under this subpart but has not been made, that officer must, as soon as practicable, report the details of the search, and of the cash, to the Commissioner.
Every report made under subsection (2) must be in the form that the Commissioner may determine after consultation with the chief executive of the New Zealand Customs Service.
The chief executive of the New Zealand Customs Service must— (a) cause a record to be made and kept of— (i) each occasion on which a cash report is made to a Customs officer; and the details of the identity of the person making the cash report; and the date on which the cash report is made; and (b) (iii) ensure that the record is retained for a period of not less than 1 year after the date on which the cash report is made.
Compare: 1996 No 9 s 42 (ii) Part 3 Enforcement Subpart 1—General provisions relating to Part Proceedings for civil penalties 72 When and how civil penalty proceedings brought (1) An application for a civil penalty under this Part may be made no later than 6 years after the conduct giving rise to the liability to pay the civil penalty occurred.
In proceedings for a civil penalty under this Part,— (a) the standard of proof is the standard of proof that applies in civil proceedings; and the relevant AML/CFT supervisor may, by order of the court, obtain discovery and administer interrogatories.
(2) (b) 62 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 75 73 (1) (2) Relationship between civil penalty and criminal proceedings Relationship between concurrent civil penalty proceedings and criminal proceedings Criminal proceedings for an offence under this Part may be commenced against a person in relation to particular conduct whether or not proceedings for a civil penalty under this Part have been commenced against the person in relation to the same or substantially the same conduct.
Proceedings under this Part for a civil penalty against a person in relation to particular conduct are stayed if criminal proceed- ings against the person are or have been commenced for an offence under this Part in relation to the same or substantially the same conduct.

(3) After the criminal proceedings referred to in subsection (2) have been completed or withdrawn, a person may apply to have the stay lifted on the civil penalty proceedings referred to in that subsection.
74 (1) (2) One penalty only rule If civil penalty or criminal proceedings under this Part are brought against a person in relation to particular conduct, a court may not impose a penalty (whether civil or criminal) on the person if a court has already imposed a penalty under this Part in proceedings relating to the same or substantially the same conduct.
If a person is or may be liable to more than 1 civil penalty under this Part in respect of the same or substantially the same conduct, civil penalty proceedings may be brought against the person for more than 1 civil penalty, but the person may not be required to pay more than 1 civil penalty in respect of the same or substantially the same conduct.
75 (1) Restriction on use of evidence given in civil penalty proceedings Evidence of information given, or evidence of production of documents, by a person is not admissible in criminal proceed- 63 Part 3 s 76 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 ings against the person for an offence under this Part or any other enactment if— (a) the person previously gave the evidence or produced the documents in civil penalty proceedings under this Part against him or her, whether or not a civil penalty was imposed; and the proceedings for the civil penalty related to conduct that was the same or substantially the same as the con- duct constituting the offence.
(b) This section does not apply to criminal proceedings in respect of the falsity of the evidence given by the person in the pro- ceedings for the civil penalty.
Immunities Protection for AML/CFT supervisors No civil or criminal proceedings may be brought against an AML/CFT supervisor or a person who is or has been an of- ficer, employee, member of, or member of the board of, an AML/CFT supervisor for anything done or omitted to be done in the course of the performance or exercise of the AML/CFT supervisor’s functions or powers under this Act unless it is shown that the AML/CFT supervisor or the person concerned acted in bad faith.
Protection for reporting entities, officers, etc, acting in compliance with this Act No reporting entity, or person who is, or has been, an officer, an employee, or a member of the governing body of the reporting entity, or person appointed under section 56(3) is criminally or civilly liable for any action taken in order to comply with this Act or regulations if the action— (a) was taken in good faith; and (b) was reasonable in the circumstances.
(2) 76 77 64 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 80 Subpart 2—Civil liability 78 Meaning of civil liability act In this Part, a civil liability act occurs when a reporting en- tity fails to comply with any of the AML/CFT requirements, including, without limitation, when the reporting entity— (a) fails to conduct customer due diligence as required by subpart 1 of Part 2: fails to adequately monitor accounts and transactions: enters into or continues a business relationship with a person who does not produce or provide satisfactory evidence of the person’s identity: enters into or continues a correspondent banking rela- tionship with a shell bank: fails to keep records in accordance with the require- ments of subpart 3 of Part 2: fails to establish, implement, or maintain an AML/CFT programme: fails to ensure that its branches and subsidiaries comply with the relevant AML/CFT requirements.
(b) (c) (d) (e) (f) (g) 79 Possible responses to civil liability act If a civil liability act is alleged to have occurred, the relevant AML/CFT supervisor may do 1 or more of the following: (a) (b) issue a formal warning under section 80: accept an enforceable undertaking under section 81 and seek an order in the court for breach of that undertaking under section 82: seek an injunction from the High Court under section 85 or 87: apply to the court for a pecuniary penalty under section 90.
(c) (d) Formal warnings 80 (1) Formal warnings The relevant AML/CFT supervisor may issue 1 or more formal warnings to a person if the AML/CFT supervisor has reason- able grounds to believe that that person has engaged in conduct that constituted a civil liability act.

65 Part 3 s 81 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (2) A formal warning must be— (a) (b) in the prescribed form; and issued in the manner specified in regulations (if any).
Enforceable undertakings Enforceable undertakings The relevant AML/CFT supervisor may accept a written undertaking given by a person in connection with compliance with this Act or regulations (if any).

The person may withdraw or vary the undertaking at any time, but only with the consent of the relevant AML/CFT supervisor.
Enforcement of undertakings If the relevant AML/CFT supervisor considers that a person who gave an undertaking under section 81 has breached 1 or more of its terms, the relevant AML/CFT supervisor may apply to the court for an order under subsection (2).
If the court is satisfied that the person has breached 1 or more of the terms of the undertaking, the court may make any or all of the following orders: (a) an order directing the person to comply with any of the terms of the undertaking: an order directing the person to pay to the AML/CFT supervisor an amount up to the amount of any financial benefit that the person has obtained directly or indirectly and that is reasonably attributable to the breach: any order that the court considers appropriate directing the person to compensate any other person who has suf- fered loss or damage as a result of the breach.
(b) (c) Assessment of compensation for breach of undertakings For the purposes of section 82(2)(c), in determining whether another person (person A) has suffered loss or damage as a result of the breach, and in assessing the amount of compen- sation payable, the court may have regard to the following: (a) the extent to which any expenses incurred by person A are attributable to dealing with the breach: 81 (1) (2) 82 (1) (2) 83 66 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 86 (b) (c) (d) (e) the effect of the breach on person A’s ability to carry on business or other activities: any damage to the reputation of person A’s business that is attributable to dealing with the breach: any loss of business opportunities suffered by person A as a result of dealing with the breach: any other matters that the court considers relevant.
Injunctions Powers of High Court not affected The powers in sections 85 to 89 are in addition to, and do not derogate from, any other powers of the High Court relating to the granting of injunctions.
Performance injunctions The High Court may, on the application of the relevant AML/CFT supervisor, grant an injunction requiring a person to do an act or thing if— (a) that person has refused or failed, or is refusing or failing, or is proposing to refuse or fail, to do that act or thing; and the refusal or failure was, is, or would be a civil liability act.

(b) 84 85 (1) (2) The court may rescind or vary an injunction granted under this section.
86 When High Court may grant performance injunctions (1) The High Court may grant an injunction requiring a person to do an act or thing if— (a) it is satisfied that the person has refused or failed to do that act or thing; or it appears to the court that, if an injunction is not granted, it is likely that the person will refuse or fail to do that act or thing.
(b) (2) (3) Subsection (1)(a) applies whether or not it appears to the court that the person intends to refuse or fail again, or to continue to refuse or fail, to do that act or thing.
Subsection (1)(b) applies— 67 Part 3 s 87 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (a) whether or not the person has previously refused or failed to do that act or thing; or (b) where there is an imminent danger of substantial dam- age to any other person if that person refuses or fails to do that act or thing.
87 (1) (2) Restraining injunctions The High Court may, on the application of the relevant AML/CFT supervisor, grant an injunction restraining a person from engaging in conduct that constitutes or would constitute a contravention of a provision of this Act.

The court may rescind or vary an injunction granted under this section.
88 When High Court may grant restraining injunctions and interim injunctions The High Court may grant an injunction restraining a person from engaging in conduct of a particular kind if— (a) it is satisfied that the person has engaged in conduct of that kind; or it appears to the court that, if an injunction is not granted, it is likely that the person will engage in con- duct of that kind.
(b) The court may grant an interim injunction restraining a person from engaging in conduct of a particular kind if, in its opinion, it is desirable to do so.

Subsections (1)(a) and (2) apply whether or not it appears to the court that the person intends to engage again, or to continue to engage, in conduct of that kind.
Subsections (1)(b) and (2) apply— (a) whether or not the person has previously engaged in conduct of that kind; or (b) where there is an imminent danger of substantial dam- age to any other person if that person engages in conduct of that kind.
(1) (2) (3) (4) 68 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 90 89 (1) Undertaking as to damages not required by AML/CFT supervisor If the relevant AML/CFT supervisor applies to the High Court for the grant of an interim injunction under this subpart, the court must not, as a condition of granting an interim injunction, require the AML/CFT supervisor to give an undertaking as to damages.
(2) However, in determining the AML/CFT supervisor’s applica- tion for the grant of an interim injunction, the court must not take into account that the AML/CFT supervisor is not required to give an undertaking as to damages.
Pecuniary penalties (2) Pecuniary penalties for civil liability act 90 (1) On the application of the relevant AML/CFT supervisor, the High Court may order a person to pay a pecuniary penalty to the Crown, or to any other person specified by the court, if the court is satisfied that that person has engaged in conduct that constituted a civil liability act.
For a civil liability act specified in section 78(b), (c), (d), or (g), the maximum amount of a pecuniary penalty under this Act is,— (a) (b) For a civil liability act specified in section 78(a), (e), or (f), the maximum amount of a pecuniary penalty under this Act is,— (a) (b) In determining an appropriate pecuniary penalty, the court must have regard to all relevant matters, including— (a) (b) in the case of an individual, $100,000; and in the case of a body corporate, $1 million.
in the case of an individual, $200,000; and in the case of a body corporate, $2 million.
the nature and extent of the civil liability act; and the likelihood, nature, and extent of any damage to the integrity or reputation of New Zealand’s financial sys- tem because of the civil liability act; and the circumstances in which the civil liability act oc- curred; and (4) (3) (c) 69 Part 3 s 91 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (d) whether the person has previously been found by the court in proceedings under this Act to have engaged in any similar conduct.
Subpart 3—Offences Offence and penalties relating to civil liability act Offence and penalties for civil liability act A reporting entity that engages in conduct constituting a civil liability act commits an offence if the reporting entity engages in that conduct knowingly or recklessly.
Offences relating to suspicious transaction reports Failing to report suspicious transaction A reporting entity commits an offence if— (a) a transaction is conducted or is sought to be conducted through the reporting entity; and the reporting entity has reasonable grounds to suspect that the transaction or the proposed transaction is or may be— (i) relevant to the investigation or prosecution of any person for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Sup- pression Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Re- covery) Act 2009; or relevant to the investigation or prosecution of a serious offence within the meaning of section 243(1) of the Crimes Act 1961; and (ii) (iii) (iv) (v) (b) (c) the reporting entity fails to report the transaction or the proposed transaction to the Commissioner as soon as practicable, but no later than 3 working days, after form- ing that suspicion.
Compare: 1996 No 9 s 22(1) 91 92 70 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 94 Section 92(b)(iv): amended, on 12 December 2012, by section 6 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2012 (2012 No 98).
93 Providing false or misleading information in connection with suspicious transaction report A person commits an offence who, in making a suspicious transaction report or in supplying information in connection with that report,— (a) makes any statement that the person knows is false or (b) misleading in a material particular; or omits from any statement any matter or thing without which the person knows that the statement is false or misleading in a material particular.
Compare: 1996 No 9 s 22(3) 94 Unlawful disclosure of suspicious transaction report (1) A person commits an offence who contravenes section 46— (a) for the purpose of obtaining, directly or indirectly, an advantage or a pecuniary gain for that person or any other person; or (b) with intent to prejudice any investigation into— (i) (ii) the commission or possible commission of a money laundering offence; or the financing of terrorism or the possible finan- cing of terrorism.
(2) A person commits an offence who— (a) (b) (c) (d) is an officer or employee or a former officer or em- ployee of a reporting entity, a person appointed as an AML/CFT compliance officer under section 56(3), or an auditor for a reporting entity; and has become aware, or became aware, in the course of that person’s duties as such an officer or employee, that any investigation into any transaction or proposed trans- action that is the subject of a suspicious transaction re- port is being, or may be, conducted by the Police; and knows that he or she is not legally authorised to disclose the information; and discloses that information to any other person— 71 Part 3 s 95 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (i) for the purpose of obtaining, directly or indi- rectly, an advantage or a pecuniary gain for that person or any other person; or (A) (ii) with intent to prejudice any investigation into— the commission or possible commission of a money laundering offence; or the financing of terrorism or the possible financing of terrorism.
(B) Compare: 1996 No 9 s 22(4), (5) Failure to keep or retain adequate records relating to suspicious transaction A reporting entity commits an offence if the reporting entity fails to keep or retain adequate records relating to a suspicious transaction.

Obstruction of investigation relating to suspicious transaction report A person commits an offence if the person obstructs any in- vestigation relating to any suspicious transaction report with- out lawful justification or excuse.
Contravention of section 47(1) A person commits an offence if the person acts in contraven- tion of section 47(1) without lawful justification or excuse.
Compare: 1996 No 9 s 22(8) Defence It is a defence to a charge against a person in relation to a contravention of, or a failure to comply with, Part 2 if the defendant proves that— (a) the defendant took all reasonable steps to ensure that the defendant complied with that Part; or in the circumstances of the particular case, the defen- dant could not reasonably have been expected to ensure that the defendant complied with that Part.
(b) In determining, for the purposes of subsection (1)(a), whether or not a defendant took all reasonable steps to comply with Part 2, the court must have regard to— 95 96 97 98 (1) (2) 72 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 100 (a) (b) the nature of the reporting entity and the activities in which it engages; and the existence and adequacy of any procedures estab- lished by the reporting entity to ensure compliance with that Part.
(3) (4) 99 Except as provided in subsection (4), subsection (1) does not apply unless, within 21 days after the service of the summons, or within such further time as the court may allow, the defen- dant has delivered to the prosecutor a written notice— (a) stating that the defendant intends to rely on the defence referred to in subsection (1); and specifying the reasonable steps that the defendant will claim to have taken.
(b) In any such prosecution, evidence that the defendant took a step not specified in the written notice required by subsection (3) is not, except with the leave of the court, admissible for the purpose of supporting a defence under subsection (1).
Compare: 1996 No 9 s 23 Time limit for prosecution of offences relating to civil liability act and suspicious transaction reports Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an of- fence under any of sections 91 to 97 of this Act ends on the date that is 3 years after the date on which the offence was committed.

Section 99: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
100 Penalties A reporting entity or person who commits an offence under any of sections 91 to 97 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) (ii) in the case of a body corporate, a fine of up to $5 million.
a term of imprisonment of not more than 2 years: a fine of up to $300,000; and (b) 73 Part 3 s 101 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Other offences relating to non-compliance with AML/CFT requirements 101 Structuring transaction to avoid application of AML/CFT requirements A person commits an offence if the person structures a trans- action (other than a transaction that involves the cross-border transportation of cash) to avoid the application of any AML/CFT requirements.
102 Offence to obstruct AML/CFT supervisor A person commits an offence if the person wilfully obstructs any AML/CFT supervisor in the exercise of any power con- ferred or the performance of any function imposed on that supervisor by this Act.
103 Offence to provide false or misleading information to AML/CFT supervisor A person commits an offence if, without reasonable excuse, the person provides information to an AML/CFT supervisor knowing that information to be false or misleading in any ma- terial respect.
104 Time limit for prosecution of offences relating to non-compliance with AML/CFT requirements Despite anything to the contrary in section 25 of the Criminal Procedure Act 2011, the limitation period in respect of an of- fence under any of sections 101 to 103 of this Act ends on the date that is 3 years after the date on which the offence was committed.

Section 104: replaced, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
105 Penalties (1) A person who commits an offence under section 101 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) (ii) a term of imprisonment of not more than 2 years: a fine of up to $300,000; and 74 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 109 (b) in the case of a body corporate, a fine of up to $5 million.
(2) A person who commits an offence under either of sections 102 and 103 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) a term of imprisonment of not more than 3 months: a fine of up to $10,000; and (ii) in the case of a body corporate, a fine of up to $50,000.
(b) Offences relating to cross-border transportation of cash 106 Failure to report cash over applicable threshold value moved into or out of New Zealand A person commits an offence if the person fails, without rea- sonable excuse, to make or cause to be made a cash report, in accordance with subpart 6 of Part 2, concerning cash over the applicable threshold value that the person has moved into or out of New Zealand.
107 Failure to report cash over applicable threshold value received by person in New Zealand from overseas A person commits an offence if the person fails, without rea- sonable excuse, to make or cause to be made a cash report, in accordance with subpart 6 of Part 2, concerning cash over the applicable threshold value that the person has received in New Zealand from overseas.
108 Structuring cross-border transportation to avoid application of AML/CFT requirements A person commits an offence if the person structures a cross- border transportation of cash to avoid the application of any AML/CFT requirements.
109 Defence It is a defence to an offence under section 106 or 107 in relation to a failure to make or cause to be made a cash report to a 75 Part 3 s 110 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Customs officer under section 70(d) if the defendant proves that— (a) the failure was due to some emergency or to any other circumstances outside the reasonable control of the de- fendant; and the defendant made or caused to be made a report in respect of that cash as soon as practicable after the obli- gation to make the report arose.
(b) Compare: 1996 No 9 s 40(3) 110 Providing false or misleading information in connection with cash report A person commits an offence if, without reasonable excuse, the person makes or causes to be made a cash report knowing it is false or misleading in any material respect.
Compare: 1996 No 9 s 40(1)(b) 111 Offence to obstruct or not to answer questions from Customs officer (1) A person commits an offence if the person wilfully obstructs any Customs officer in the exercise of any power conferred or performance of any duty imposed on that officer by this Act.

(2) A person commits an offence if, without reasonable excuse, the person fails to answer questions from a Customs officer.
Compare: 1996 No 9 s 40(2) 112 Penalties A person who commits an offence under any of sections 106, 107, 108, 110, and 111 is liable, on conviction, to,— (a) in the case of an individual, either or both of the follow- ing: (i) a term of imprisonment of not more than 3 months: a fine of up to $10,000; and (ii) (b) in the case of a body corporate, a fine of up to $50,000.

Section 112: amended, on 1 July 2013, by section 413 of the Criminal Procedure Act 2011 (2011 No 81).
76 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 114 113 Chief executive of New Zealand Customs Service may (1) (2) (3) deal with cash reporting offences This section applies if, in any case to which section 106 or 107 applies, a person admits in writing that he or she has com- mitted the offence and requests that the offence be dealt with summarily by the chief executive of the New Zealand Customs Service.
If this section applies, the chief executive of the New Zealand Customs Service may, at any time before a charging document has been filed in respect of the offence, accept from that person a sum, not exceeding $500, that the chief executive of the New Zealand Customs Service thinks just in the circumstances of the case, in full satisfaction of any fine to which the person would otherwise be liable under section 112.
If the chief executive of the New Zealand Customs Service accepts any sum under this section, the offender is not liable to be prosecuted for the offence in respect of which the payment was made.

Compare: 1996 No 9 s 41 Section 113(2): amended, on 1 July 2013, by section 413 of the Criminal Pro- cedure Act 2011 (2011 No 81).

Relationship with Customs and Excise Act 1996 114 Relationship with Customs and Excise Act 1996 (1) Nothing in this Act limits or affects the Customs and Excise (2) (3) (4) Act 1996.
The movement of cash in breach of any requirement of this Act or any regulations is, for the purposes of the Customs and Excise Act 1996, the importation or exportation of a prohibited good.

It is the duty of every Customs officer to prevent the movement of cash that is in breach of any requirement of this Act or any regulations.
For the purpose of carrying out the duty in subsection (3), a Customs officer may exercise his or her powers under the fol- lowing sections of the Customs and Excise Act 1996 in rela- tion to uncustomed or prohibited goods: (a) section 145 (questioning persons about goods and debt): 77 Part 3 s 115 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (b) (c) (d) (e) (f) (g) (h) (i) section 148 (detention of persons questioned about goods or debt): sections 149, 149A, 149B, and 149C(1) (which relate to search and seizure): sections 151 and 152 (which relate to examination of goods): section 161 (further powers in relation to documents): section 165 (copying of documents obtained during search): section 166 (retention of documents and goods obtained during search): sections 166A to 166F (which relate to seizure and de- tention of goods suspected to be tainted property): sections 167 to 172 (which relate to search warrants and use of aids by Customs officers).
Section 114(4)(c): amended, on 1 October 2012, by section 201(2) of the Search and Surveillance Act 2012 (2012 No 24).
Computer searches by Customs officer 115 Duty of persons with knowledge of computer or computer network or other data storage devices to assist access to Customs officer (1) A Customs officer exercising a search or examination power under section 114(4) may require a specified person to provide access information and other information or assistance that is reasonable and necessary to allow the Customs officer to ac- cess data held in, or accessible from,— (a) (b) In this section,— access information includes access codes, passwords, en- cryption keys, and any related information that enables access to a computer or other data storage device specified person is a person who— (a) a computer: any other data storage device.
(2) is the owner or lessee of the computer or other data stor- age device, or is in possession or control of the computer or other data storage device, is an employee of any of the above, or is a service provider who provides service to the above and holds access information; and 78 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 116 (b) has relevant knowledge of— (i) the computer or a computer network of which the computer or other data storage device forms a part; or (ii) measures applied to protect data held in, or ac- cessible from, the computer or other data storage device.
(3) A specified person may not be required under subsection (1) (4) (5) (6) to give any information tending to incriminate the person.
Subsection (3) does not prevent a Customs officer exercising a search power from requiring a specified person to provide information that— (a) is reasonable and necessary to allow the person exercis- ing the search power to access data held in, or accessible from, a computer or other storage device that contains or may contain information tending to incriminate the specified person; but (b) does not itself tend to incriminate the specified person.
Subsection (3) does not prevent a Customs officer exercising a search power from requiring a specified person to provide as- sistance that is reasonable and necessary to allow the Customs officer exercising the search power to access data held in, or accessible from, a computer or other storage device that con- tains, or may contain, information tending to incriminate the specified person.
Subsections (1), (4), and (5) are subject to section 162 of the Customs and Excise Act 1996 (which relates to privilege and confidentiality).
Subpart 4—Search and seizure 116 Definitions In this subpart, unless the context otherwise requires,— document— (a) means any record of information; and (b) includes— (i) anything on which there is writing or any image; and 79 Part 3 s 117 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (ii) (iii) anything on which there are marks, figures, sym- bols, or perforations that have a meaning for per- sons qualified to interpret them; and anything from which sounds, images, or writing can be reproduced, with or without the aid of anything else dwellinghouse means a building, or an apartment, a flat, or a unit within a building, that is used as a private residence enforcement officer means the relevant AML/CFT supervisor or the Commissioner (as the case may require) and includes a person appointed under section 141 by an AML/CFT super- visor evidential material means any thing that there are reasonable grounds for believing is or may be evidence, or may provide or contain evidence, of— (a) (b) (c) occupier, in relation to any place, includes— (a) an offence under this Part; or an attempt to commit an offence under this Part; or a civil liability act a person who is present at the place and is in apparent control of it; and any person acting on behalf of the occupier (b) place— (a) means anywhere on, under, or over any land or water; (b) and includes all or any part of a building, structure, or con- veyance seize includes to secure against interference thing includes— (a) any substance, article, document, container, or equip- ment; and anything in electronic or magnetic form.
(b) Search warrants Search warrant 117 (1) An enforcement officer may apply for a search warrant in re- spect of a place.

80 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 118 (2) The application must be made by an enforcement officer in the manner provided in subpart 3 of Part 4 of the Search and Surveillance Act 2012.
(3) An issuing officer (within the meaning of section 3 of the Search and Surveillance Act 2012) may issue a search war- rant in respect of a place if satisfied that there are reasonable grounds for believing that there is evidential material at that place.

The provisions of subparts 1, 3, and 9 of Part 4 of the Search and Surveillance Act 2012 apply.

[Repealed] [Repealed] Section 117(2): replaced, on 30 June 2013, by section 201(3) of the Search and Surveillance Act 2012 (2012 No 24).
(5) (6) (4) Section 117(3): amended, on 30 June 2013, by section 201(4) of the Search and Surveillance Act 2012 (2012 No 24).

Section 117(4): replaced, on 30 June 2013, by section 201(5) of the Search and Surveillance Act 2012 (2012 No 24).

Section 117(5): repealed, on 30 June 2013, by section 201(5) of the Search and Surveillance Act 2012 (2012 No 24).

Section 117(6): repealed, on 30 June 2013, by section 201(5) of the Search and Surveillance Act 2012 (2012 No 24).
118 Powers under search warrant (1) A search warrant issued under section 117 authorises the en- forcement officer or constable who is executing it, and any person called on by that officer or constable to assist, to do any of the following: (a) (b) (c) (d) [Repealed] [Repealed] search for any evidential material at the place: inspect and copy any document; and for that purpose also do any of the following: (i) require any person at the place to produce a par- ticular document: require any person at the place who has control or knowledge of a document to reproduce, or assist in reproducing, the document in usable form: operate any equipment at the place: (ii) (iii) 81 Part 3 s 119 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (iv) remove a document temporarily to another place in order to copy it: [Repealed] require the occupier of the place to answer any ques- tions put by the enforcement officer or constable.
(e) (f) (2) An enforcement officer or constable may require the occupier of the place to do the following: (a) (b) hold any thing at the place in an unaltered state for a specified period of up to 5 working days: provide a copy of particular documents within a speci- fied period (which must be a period that is reasonable in the circumstances).

(3) The provisions of Part 4 of the Search and Surveillance Act 2012 (except subpart 3 and sections 118, 119, and 130) apply.
Section 118(1)(a): repealed, on 30 June 2013, by section 201(6) of the Search and Surveillance Act 2012 (2012 No 24).

Section 118(1)(b): repealed, on 30 June 2013, by section 201(6) of the Search and Surveillance Act 2012 (2012 No 24).

Section 118(1)(c): amended, on 30 June 2013, by section 201(7) of the Search and Surveillance Act 2012 (2012 No 24).

Section 118(1)(e): repealed, on 30 June 2013, by section 201(6) of the Search and Surveillance Act 2012 (2012 No 24).
Section 118(3): replaced, on 30 June 2013, by section 201(8) of the Search and Surveillance Act 2012 (2012 No 24).

Conduct of entry, search, and seizure 119 Assistance with searches [Repealed] Section 119: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).

120 Enforcement officers to show identity card on request [Repealed] Section 120: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).
121 Announcement before entry [Repealed] Section 121: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).

82 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 3 s 126 122 Details of warrant to be given to occupier Section 122: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).
123 Occupier entitled to be present during search (1) The occupier of a place that is subject to a search under this subpart, and who is present at any time during the search, is entitled to observe the search as it is being carried out.

The right to observe the search ceases if the person observing impedes the search.

This section does not prevent 2 or more parts of the place being searched at the same time.
(2) (3) 124 Use of electronic equipment (1) (2) If an enforcement officer, a constable, or a person assisting a search operates electronic equipment found at a place during a search, the officer, constable, or person must take all reason- able care not to damage the equipment or corrupt information stored on it.
If, as a result of a failure to take the care required by subsection (1), the owner of the equipment or information, or the occu- pier of the place that was searched, suffers damage, the owner or occupier may seek damages from the relevant AML/CFT supervisor or the Police (as the case may require) in respect of that damage.

125 Copies of documents seized to be provided [Repealed] Section 125: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).
126 Receipts for things seized [Repealed] Section 126: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).

83 Part 3 s 127 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 127 Application of sections 198A and 198B of Summary Proceedings Act 1957 [Repealed] Section 127: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).
Return and retention of things seized [Repealed] Heading: repealed, on 30 June 2013, pursuant to section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).

128 Return and retention of things seized [Repealed] Section 128: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).

129 Order to retain things seized [Repealed] Section 129: repealed, on 30 June 2013, by section 201(9) of the Search and Surveillance Act 2012 (2012 No 24).
Part 4 Institutional arrangements and miscellaneous provisions Subpart 1—Institutional arrangements AML/CFT supervisors 130 AML/CFT supervisors (1) The AML/CFT supervisors are as follows: (a) for registered banks, life insurers, and non-bank de- posit takers, the Reserve Bank of New Zealand (Re- serve Bank) is the relevant AML/CFT supervisor: for issuers of securities, trustee companies, futures deal- ers, collective investment schemes, brokers, and finan- cial advisers, the Financial Markets Authority is the relevant AML/CFT supervisor: for casinos, non-deposit-taking lenders, money chang- ers, and other reporting entities that are not covered by (b) (c) 84 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 131 paragraph (a) or (b), the Department of Internal Affairs is the relevant AML/CFT supervisor.
(2) (3) If the products or services provided by a particular reporting entity are covered by more than 1 AML/CFT supervisor,— (a) the AML/CFT supervisors concerned may agree on the relevant AML/CFT supervisor that will be the reporting entity’s AML/CFT supervisor for the purposes of this Act; and the relevant AML/CFT supervisor will notify the re- porting entity accordingly.
(b) If a reporting entity is a member of a designated business group and the products and services provided by members of that designated business group are covered by more than 1 AML/CFT supervisor,— (a) the AML/CFT supervisors concerned may agree on 1 AML/CFT supervisor that will be the AML/CFT super- visor for all the reporting entities that are members of the designated business group for the purposes of this Act; and that AML/CFT supervisor will notify the reporting en- tities accordingly.
(b) (4) If the AML/CFT supervisors cannot agree on which AML/CFT supervisor is to be a reporting entity’s supervisor under subsection (2) or (3), then the AML/CFT co-ordination committee must appoint the AML/CFT supervisor for that entity.

(5) A reporting entity may have only 1 AML/CFT supervisor.

Section 130(1)(a): amended, on 5 December 2013, by section 9 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).
Section 130(1)(b): amended, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
131 Functions The functions of an AML/CFT supervisor are to— (a) monitor and assess the level of risk of money laundering and the financing of terrorism across all of the reporting entities that it supervises: 85 Part 4 s 132 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (c) (b) monitor the reporting entities that it supervises for compliance with this Act and regulations, and for this purpose to develop and implement a supervisory programme: provide guidance to the reporting entities it supervises in order to assist those entities to comply with this Act and regulations: investigate the reporting entities it supervises and en- force compliance with this Act and regulations: co-operate through the AML/CFT co-ordination com- mittee (or any other mechanism that may be appropri- ate) with domestic and international counterparts to en- sure the consistent, effective, and efficient implementa- tion of this Act.
(d) (e) 132 Powers (1) An AML/CFT supervisor has all the powers necessary to carry out its functions under this Act.
(2) Without limiting the power conferred by subsection (1), an AML/CFT supervisor may,— (a) on notice, require production of, or access to, all records, documents, or information relevant to its supervision and monitoring of reporting entities for compliance with this Act; and conduct on-site inspections in accordance with section 133; and provide guidance to the reporting entities it supervises by— (i) (ii) producing guidelines; and preparing codes of practice in accordance with section 63; and providing feedback on reporting entities’ compli- ance with obligations under this Act and regula- tions; and undertaking any other activities necessary for as- sisting reporting entities to understand their obli- gations under this Act and regulations, including how best to achieve compliance with those obli- gations; and (iii) (iv) (b) (c) 86 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 134 (d) (e) (f) co-operate and share information in accordance with sections 46, 48, and 137 to 140 by communicating or making arrangements to communicate information ob- tained by the AML/CFT supervisor in the performance of its functions and the exercise of its powers under this Act; and in accordance with this Act and any other enactment, initiate and act on requests from any overseas counter- parts; and approve the formation of, and addition of members to, designated business groups.
(3) An AML/CFT supervisor may only use the powers conferred on it under this Act and regulations for the purposes of this Act.

133 Matters relating to conduct of on-site inspections (1) An AML/CFT supervisor may, at any reasonable time, en- ter and remain at any place (other than a dwellinghouse or a marae) for the purpose of conducting an on-site inspection of a reporting entity.
(2) During an inspection, an AML/CFT supervisor may require any employee, officer, or agent of the reporting entity to an- swer questions relating to its records and documents and to provide any other information that the AML/CFT supervisor may reasonably require for the purpose of the inspection.

(3) A person is not required to answer a question asked by an AML/CFT supervisor under this section if the answer would or could incriminate the person.
Before an AML/CFT supervisor requires a person to answer a question, the person must be informed of the right specified in subsection (3).

(4) (5) Nothing in this section requires any lawyer to disclose any privileged communication (as defined in section 42).
134 Delegation of supervisory function and powers (1) An AML/CFT supervisor may delegate the following function and powers to a person who, by reason of his or her training or 87 Part 4 s 135 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 experience, is suitably qualified to perform that function and exercise those powers: (a) its function under section 131(d) of investigating the reporting entities it supervises: its powers under section 132(2)(a) and (b), for the pur- pose only of performing the function of investigation under section 131(d).
(b) (2) A delegation under subsection (1)— (a) must be made by the chief executive of the AML/CFT supervisor in writing; and (b) may be made subject to any restrictions and conditions that the AML/CFT supervisor thinks fit; and (c) may be revoked at any time by written notice to the delegate.
(3) A person to whom a function or power of the AML/CFT super- visor is delegated under this section— (a) may, unless the delegation provides otherwise, perform the function or exercise the power in the same manner, and with the same effect, as if the delegate were the AML/CFT supervisor; and (b) must disclose to the AML/CFT supervisor and manage appropriately any conflict of interest that might arise in relation to the performance of the function or exercise of the power; and (c) must not disclose any information obtained under sub- section (1) other than to the AML/CFT supervisor.
Section 134(1)(b): amended, on 5 December 2013, by section 10 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106).
135 Authority to act as delegate (1) The chief executive of the AML/CFT supervisor must issue a written authorisation to every person to whom a delegation is made under section 134 stating— (a) (b) (c) The delegate, when acting in the capacity of a delegate of the AML/CFT supervisor,— the name of the authorised person; and the function that he or she is authorised to perform; and the powers that he or she may exercise.
(2) 88 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 137 (a) must carry on him or her— (i) (ii) the written authorisation provided under subsec- tion (1); and evidence of his or her identity; and (b) must produce the written authorisation and evidence re- ferred to in paragraph (a), if requested to do so by a re- porting entity that is subject to the delegated function or powers being performed or exercised by the delegate.
(3) The delegate must return the written authorisation to the AML/CFT supervisor as soon as his or her delegation is revoked.

136 Effect of delegation (1) No delegation under section 134— (a) (b) affects or prevents the performance of any function or the exercise of any power by the AML/CFT supervisor; or affects the responsibility of the AML/CFT supervisor for the performance of its functions and the exercise of its powers.
(2) Every person to whom a function or power is delegated under section 134 has the same immunities in relation to the per- formance of that function or the exercise of that power as the AML/CFT supervisor that made the delegation.

Use and disclosure of information (1) (2) 137 Power to use information obtained as AML/CFT supervisor in other capacity and vice versa This section applies to information other than personal infor- mation.
The Reserve Bank may use any information obtained or held by it in the exercise of its powers or the performance of its functions and duties under the Reserve Bank of New Zealand Act 1989 for the purpose of exercising its powers or perform- ing its functions and duties under this Act as an AML/CFT supervisor.
The Reserve Bank may use any information obtained or held by it in the exercise of its powers or the performance of its (3) 89 Part 4 s 138 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (4) (5) (6) (7) functions and duties under this Act as an AML/CFT supervisor for the purpose of exercising its powers or performing its func- tions and duties under the Reserve Bank of New Zealand Act 1989.
The Financial Markets Authority may use any information ob- tained or held by it in the exercise of its powers or the perform- ance of its functions and duties under the Financial Markets Authority Act 2011, the Securities Act 1978, the Securities Markets Act 1988, and the Financial Advisers Act 2008 for the purpose of exercising its powers or performing its func- tions and duties under this Act as an AML/CFT supervisor.
The Financial Markets Authority may use any information ob- tained or held by it in the exercise of its powers or the perform- ance of its functions and duties under this Act as an AML/CFT supervisor for the purpose of exercising its powers or perform- ing its functions and duties under the Financial Markets Au- thority Act 2011, the Securities Act 1978, the Securities Mar- kets Act 1988, and the Financial Advisers Act 2008.
The Department of Internal Affairs may use any information obtained or held by it in the exercise of its powers or the per- formance of its functions and duties under the Gambling Act 2003 for the purpose of exercising its powers or performing its functions and duties under this Act as an AML/CFT super- visor.
The Department of Internal Affairs may use any information obtained or held by it in the exercise of its powers or the performance of its functions and duties under this Act as an AML/CFT supervisor for the purpose of exercising its powers or performing its functions and duties under the Gambling Act 2003.

Section 137(4): substituted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
Section 137(5): substituted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).
138 Restriction on power to use information under section 137 An AML/CFT supervisor may only use information obtained under section 137 if the person providing the information was 90 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 140 advised of the purpose or purposes for which the information was obtained at the time he or she provided that information.
139 Power to disclose information supplied or obtained as AML/CFT supervisor The Commissioner, the New Zealand Customs Service, or an AML/CFT supervisor may disclose any information (that is not personal information) supplied or obtained by it in the ex- ercise of its powers or the performance of its functions and duties under this Act to any government agency for law en- forcement purposes if it is satisfied that the agency has a proper interest in receiving such information.
140 Power to use and disclose information supplied or (2) obtained under other enactments for AML/CFT purposes (1) A government agency or an AML/CFT supervisor may disclose to any other AML/CFT supervisor or government agency any information supplied or obtained under an en- actment listed in subsection (2) if the disclosure of that information is necessary or desirable for the purpose of ensuring compliance with this Act and regulations.
The enactments referred to in subsection (1) are— (a) (b) (c) (d) (da) (e) the Companies Act 1993: the Criminal Proceeds (Recovery) Act 2009: the Customs and Excise Act 1996: the Financial Advisers Act 2008: the Financial Markets Authority Act 2011: the Financial Service Providers (Registration and Dis- pute Resolution) Act 2008: the Financial Transactions Reporting Act 1996: the Gambling Act 2003: the New Zealand Security Intelligence Service Act 1969: the Proceeds of Crime Act 1991: the Reserve Bank of New Zealand Act 1989: the Securities Act 1978: the Securities Markets Act 1988: the Terrorism Suppression Act 2002.
(f) (g) (h) (i) (j) (k) (l) (m) 91 Part 4 s 141 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Section 140(2)(da): inserted, on 1 May 2011, by section 82 of the Financial Markets Authority Act 2011 (2011 No 5).

141 Enforcement officers (1) For the purposes of this Act, an AML/CFT supervisor may ap- point any employee as an enforcement officer, on a permanent or temporary basis, to exercise the powers conferred on the AML/CFT supervisor by this Act.
(2) An AML/CFT supervisor must issue its enforcement officers with an identity card.

(3) An enforcement officer must— (a) (b) carry his or her identity card at all times when acting as an enforcement officer under this Act or regulations; and return his or her identity card to the relevant AML/CFT supervisor immediately upon ceasing to be an enforce- ment officer.
Financial intelligence functions of Commissioner 142 Financial intelligence functions of Commissioner The financial intelligence functions of the Commissioner are to— (a) (b) receive suspicious transaction reports: produce guidance material, including— (i) typologies of money laundering and financing of terrorism transactions: information for reporting entities on their obliga- tions to report suspicious transactions and how to meet those obligations: (ii) (c) (d) (e) provide feedback to reporting entities on the quality and timeliness of their suspicious transaction reporting: enforce requirements to provide suspicious transaction reports: analyse suspicious transaction reports to assess whether any should be referred to investigative branches of the New Zealand Police and to other law enforcement agen- cies for criminal investigation: 92 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 143 (f) (g) (h) (i) (j) (k) (l) access, directly or indirectly, on a timely basis the finan- cial, administrative, and law enforcement information that the Commissioner requires to properly undertake his or her financial intelligence functions, including the analysis of suspicious transaction reports: refer to investigative branches of the New Zealand Po- lice and to other law enforcement agencies any suspi- cious transaction reports that, in the view of the Com- missioner, indicate grounds for criminal investigation: refer suspicious transaction reports and feedback pro- vided to reporting entities on any suspicious transaction reports to AML/CFT supervisors: receive, analyse, and (if appropriate) refer to law en- forcement agencies any cash reports: receive, analyse, and (if appropriate) refer to law en- forcement agencies any suspicious property reports: produce risk assessments relating to money laundering offences and the financing of terrorism to be used by the Ministry, the Ministry of Justice, AML/CFT super- visors, and the New Zealand Customs Service: co-operate with the Ministry, the Ministry of Justice, AML/CFT supervisors, the New Zealand Customs Ser- vice, and any other relevant agencies to help ensure the effective implementation of the requirements under this Act and regulations.
143 Powers relating to financial intelligence functions of Commissioner The Commissioner may— (a) order production of or access to all records, documents, or information from any reporting entity that is relevant to analysing a suspicious transaction report received by the Commissioner, with or without a court order; and share suspicious transaction reports, cash reports, suspi- cious property reports, and other financial information and intelligence with domestic and international author- ities for the purposes of this Act and regulations.
(b) 93 Part 4 s 144 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 144 Delegation of powers of Commissioner (1) The Commissioner may from time to time in writing, either generally or particularly, delegate to a constable of a level of position not less than inspector the Commissioner’s powers under section 143(a).
(2) Where any constable exercises any power conferred under subsection (1), that constable must, within 5 days after the day on which the constable exercises the power, give the Commis- sioner a written report on the exercise of that power and the circumstances in which it was exercised.
(3) A constable who purports to perform a power under a delega- tion— (a) is, in the absence of proof to the contrary, presumed to do so in accordance with the terms of that delegation; and (b) must produce evidence of his or her authority to do so, if reasonably requested to do so.

(4) Every delegation under this section is revocable at will and does not prevent the exercise of any power by the Commis- sioner.
145 Guidelines relating to reporting of suspicious transactions Subject to section 146, the Commissioner must issue, in re- (1) spect of each kind of reporting entity to which this Act applies, guidelines— (a) setting out any features of a transaction that may give rise to a suspicion that the transaction is or may be— (i) relevant to the investigation or prosecution of any person for a money laundering offence; or relevant to the enforcement of the Misuse of Drugs Act 1975; or relevant to the enforcement of the Terrorism Sup- pression Act 2002; or relevant to the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Re- covery) Act 2009; or relevant to the investigation or prosecution of a serious offence within the meaning of section 243(1) of the Crimes Act 1961; and (ii) (iii) (iv) (v) 94 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 146 (b) setting out any circumstances in which a suspicious transaction report relating to such a transaction may be made orally in accordance with section 41(2), and the procedures for making such an oral report.
(2) (3) Suspicious transaction guidelines must be issued in such man- ner as the Commissioner from time to time determines.

The Commissioner may issue an amendment or revocation of any suspicious transaction guidelines.

(4) Without limiting subsection (1), suspicious transaction guide- lines issued under this section may relate to 1 or more kinds of reporting entities, and such guidelines may make different provision for different kinds of reporting entities and different kinds of transactions.
Compare: 1996 No 9 s 24 146 Consultation on proposed guidelines (1) The Commissioner must, before issuing any suspicious trans- action guidelines,— (a) (b) (c) (ii) consult with, and invite representations from, the Pri- vacy Commissioner under the Privacy Act 1993, and must have regard to any such representations; and give public notice of the Commissioner’s intention to issue the guidelines, which notice must contain a state- ment— (i) indicating the Commissioner’s intention to issue the guidelines; and inviting reporting entities that are likely to be af- fected by the proposed guidelines, and industry organisations that are representative of those re- porting entities, to express to the Commissioner, within any reasonable period that is specified in the notice, their interest in being consulted in the course of the development of the guidelines; and consult with, and invite representations from, those re- porting entities and industry organisations who express such an interest, and must have regard to any such rep- resentations.
(2) Nothing in subsection (1) prevents the Commissioner from adopting any additional means of publicising the proposal to 95 Part 4 s 147 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (3) issue any suspicious transaction guidelines or of consulting with interested parties in relation to such a proposal.

This section applies to any amendment or revocation of any suspicious transaction guidelines.
Compare: 1996 No 9 s 25 147 Availability of guidelines On a request by any reporting entity in respect of which any suspicious transaction guidelines are for the time being in force, or by any industry organisation that represents the reporting entity, the Commissioner must, without charge,— (a) make those guidelines, and all amendments to those guidelines, available for inspection by that reporting en- tity or, as the case requires, that industry organisation at Police National Headquarters; and provide copies of those guidelines, and all amendments to those guidelines, to that reporting entity or, as the case requires, that industry organisation.
(b) Compare: 1996 No 9 s 26 148 Review of guidelines (1) (2) The Commissioner must review from time to time any suspi- cious transaction guidelines for the time being in force.

Sections 145 and 146 apply, with all necessary modifications, in relation to any such review as if the review were a proposal to issue suspicious transaction guidelines.
Compare: 1996 No 9 s 27 149 Role of Ministry Co-ordination The Ministry, in consultation with other agencies with AML/CFT roles and functions, is responsible for advising on the overall effectiveness and efficiency of the AML/CFT regulatory system, including— (a) advising the Minister on outcomes and objectives for AML/CFT regulation and how best to achieve these (in- cluding links to other Government initiatives relevant to the purposes of this Act); and 96 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 152 (b) monitoring, evaluating, and advising the Minister on the performance of the AML/CFT regulatory system in achieving the Government’s outcomes and objectives for it; and advising the Minister on any changes necessary to the AML/CFT regulatory system to improve its effective- ness; and administering the relevant AML/CFT legislation.
(d) (c) 150 AML/CFT co-ordination committee (1) The chief executive must establish an AML/CFT co-ordin- ation committee consisting of— (a) (b) a representative from the Ministry; and a representative from the New Zealand Customs Ser- vice; and every AML/CFT supervisor; and a representative of the Commissioner; and such other persons as are invited from time to time by the chief executive in accordance with subsection (2).
(2) Any person invited under subsection (1)(e) must be employed (c) (d) (e) (3) in a government agency.

The chair of the AML/CFT co-ordination committee is the chief executive.

151 Role of AML/CFT co-ordination committee The role of the AML/CFT co-ordination committee is to en- sure that the necessary connections between the AML/CFT supervisors, the Commissioner, and other agencies are made in order to ensure the consistent, effective, and efficient oper- ation of the AML/CFT regulatory system.
152 Functions The functions of the AML/CFT co-ordination committee are to— (a) facilitate necessary information flows between the AML/CFT supervisors, the Commissioner, and other agencies involved in the operation of the AML/CFT regulatory system: 97 Part 4 s 153 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (b) (c) (d) (e) (f) facilitate the production and dissemination of infor- mation on the risks of money-laundering offences and the financing of terrorism in order to give advice and make decisions on AML/CFT requirements and the risk-based implementation of those requirements: facilitate co-operation amongst AML/CFT supervisors and consultation with other agencies in the development of AML/CFT policies and legislation: facilitate consistent and co-ordinated approaches to the development and dissemination of AML/CFT guidance materials and training initiatives by AML/CFT super- visors and the Commissioner: facilitate good practice and consistent approaches to AML/CFT supervision between the AML/CFT super- visors and the Commissioner: provide a forum for examining any operational or pol- icy issues that have implications for the effectiveness or efficiency of the AML/CFT regulatory system.
Subpart 2—Miscellaneous provisions Regulations 153 Regulations The Governor-General may, by Order in Council, make regu- lations for all or any of the following purposes: (a) prescribing requirements (generic and sector-specific) for standard, simplified, enhanced, and ongoing cus- tomer due diligence and any other AML/CFT require- ments, including, but not limited to, the following: (i) information to be provided or obtained for the purposes of identification and verification: the circumstances in which a particular type of customer due diligence must be conducted: specifying entities or classes of entities, or prod- ucts, services, or transactions for which a report- ing entity may conduct simplified customer due diligence: the conditions in which third parties may be re- lied on to conduct customer due diligence: (ii) (iii) (iv) 98 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 153 (v) (vi) (vii) the conditions on which a member of a desig- nated business group may adopt an AML/CFT programme of another member of the group and share and use the policies, controls, and proced- ures of that programme: the circumstances in which corporations are deemed to be affiliated: the factors that a reporting entity must have re- gard to when assessing risk: prescribing instruments to be bearer-negotiable instru- ments for the purposes of this Act: prescribing the forms of, and the information to be included in, applications, warrants, reports, and other documents required under this Act: prescribing amounts or thresholds that are required to be prescribed for the purposes of this Act: prescribing the information to be included in records and the manner in which records are to be kept by re- porting entities, or any specified class or classes of re- porting entities: prescribing other identifying information that allows a transaction to be traced back to the originator for the purposes of section 27(1): prescribing the manner in which any notice, report, or other document required by this Act is to be given or served: prescribing for the form of a formal warning and the manner in which it must be issued: specifying Acts for which disclosure of personal infor- mation may be made by an AML/CFT supervisor for the purposes of the detection, investigation, and pros- ecution of offences under the specified Act: providing for any other matters contemplated by this Act or necessary for its administration or necessary for giving it full effect.
(b) (c) (d) (e) (f) (g) (h) (i) (j) Compare: 1996 No 9 s 56 99 Part 4 s 154 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 154 Regulations relating to application of Act (1) The Governor-General may, by Order in Council on the rec- ommendation of the Minister, make regulations for the follow- ing purposes: (a) exempting or providing for the exemption of any trans- action, product, or service or class of transactions, prod- ucts, or services from all or any of the provisions of this Act: excluding certain relationships or banking services from the application of section 29 (which relates to correspondent banking relationships): exempting a reporting entity from its obligation to ob- tain some or all of the information set out in section 27(1) in relation to a specified transfer or transaction: exempting certain movements of cash from the applica- tion of subpart 6 of Part 2: prescribing threshold values for the purposes of sections 68 and 69 and the person or class of persons, transaction or class of transactions, financial activity or class of fi- nancial activities to which that threshold value applies: declaring an account or arrangement to be, or not to be, a facility and the circumstances and conditions in which an account or arrangement is to be, or not to be, a facility for the purposes of this Act: declaring a person or class of persons to be, or not to be, a reporting entity and the circumstances and conditions in which a person or class of persons is to be, or not to be, a reporting entity for the purposes of this Act: declaring a transaction or class of transactions to be, or not to be, an occasional transaction and the circum- stances and conditions in which a transaction or class of transactions is to be, or not to be, an occasional transac- tion for the purposes of this Act: declaring a transfer or transaction or a class of transfers or transactions not to be a wire transfer and the circum- stances and conditions in which a transfer or transaction
 or class of transfers or transactions is not a wire transfer for the purposes of this Act: (b) (c) (d) (e) (f) (g) (h) (i) 100 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 154 (2) (3) (j) (k) declaring a person or class of persons to be, or not to be, a customer and the circumstances and conditions in which a person or class of persons is to be, or not to be, a customer for the purposes of this Act: declaring an entity or class of entities (whether domestic or overseas) to be eligible for inclusion in a designated business group: declaring a person or class of persons to be, or not to be, a financial institution for the purposes of this Act.
The Minister must, before making any recommendation, have regard to— (a) (l) the purposes of this Act and the Financial Transactions Reporting Act 1996; and the risk of money laundering and the financing of ter- rorism; and the impact on the prevention, detection, investigation, and prosecution of offences; and the level of regulatory burden on a reporting entity; and whether the making of the regulation would create an unfair advantage for a reporting entity or would disad- vantage other reporting entities; and the overall impact that making the regulation would the have on the integrity of, and compliance with, AML/CFT regulatory regime.
(b) (c) (d) (e) (f) The Minister must also, before making any recommenda- tion,— (a) do everything reasonably possible on the Minister’s part to advise all persons who in the Minister’s opinion will be affected by any regulations made in accordance with the recommendation, or representatives of those per- sons, of the proposed terms of the recommendation and of the reasons for it; and give such persons or their representatives a reasonable opportunity to consider the recommendation and to make submissions on it to the Minister, and the Minister must consider those submissions; and give notice in the Gazette, not less than 28 days before making the recommendation, of the Minister’s intention (b) (c) 101 Part 4 s 155 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 to make the recommendation and state in the notice the matters to which the recommendation relates; and (d) make copies of the recommendation available for in- spection by any person who so requests before any regu- lations are made in accordance with the recommenda- tion.
(4) Failure to comply with subsection (3) does not affect the val- idity of any regulations made under this section.

(5) Any regulations made under this section expire on the day that is 5 years after the date on which regulations come into force.

Section 154(1)(k): amended, on 12 December 2012, by section 8 of the Anti- Money Laundering and Countering Financing of Terrorism Amendment Act 2012 (2012 No 98).
155 Regulations relating to countermeasures (1) The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for, or in relation to, prohibiting or regulating the entering into of trans- actions or business relationships between a reporting entity and any other person.
Regulations made for the purposes of subsection (1)— (a) may be of general application; or (b) may be limited by reference to any or all of the follow- (2) ing: (i) (ii) (iii) a specified transaction: a specified party: a specified overseas country.

(3) The Governor-General may, by Order in Council, declare a country outside New Zealand to be a prescribed overseas country for the purposes of this section.
(4) Any regulations made under subsection (1) expire on the day that is 5 years after the date on which regulations come into force.
Compare: Anti-Money Laundering and Counter-Terrorism Financing Act 2006 s 102 (Aust) 102 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 157 156 Consultation not required for consolidation of certain regulations and minor amendments The Minister is not required to comply with section 154(3) in respect of the making of any regulations to the extent that regulations— (a) revoke any regulations made under section 154 and, at the same time, consolidate the revoked regulations, so that they have the same effect as those revoked regula- tions; or (b) make minor amendments to regulations.
Compare: 1996 No 9 s 56A Ministerial exemptions 157 Minister may grant exemptions (1) a reporting entity or class of reporting entities; or a transaction or class of transactions.

The Minister may, in the prescribed form, exempt any of the following from the requirements of all or any of the provisions of this Act: (a) (b) The Minister may grant the exemption— unconditionally; or (a) subject to any conditions the Minister thinks fit.
(b) Before deciding to grant an exemption and whether to attach any conditions to the exemption, the Minister must have regard to the following: (a) the intent and purposes of the Financial Transactions Reporting Act 1996: the intent and purpose of this Act and any regulations: the risk of money laundering and the financing of ter- rorism associated with the reporting entity, including, where appropriate, the products and services offered by the reporting entity and the circumstances in which the products and services are provided: the impacts on prevention, detection, investigation, and prosecution of offences: the level of regulatory burden to which the reporting en- tity would be subjected in the absence of an exemption: (b) (c) (d) (e) (2) (3) 103 Part 4 s 158 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 (f) (g) whether the exemption would create an unfair advan- tage for the reporting entity or disadvantage third party reporting entities: the overall impact that the exemption would have on the integrity of, and compliance with, the AML/CFT regulatory regime.
(4) An exemption under this section is a disallowable instrument for the purposes of the Legislation Act 2012 and must be pre- sented to the House of Representatives under section 41 of that Act.
(b) (5) A class exemption under this section must be published under section 6 of the Legislation Act 2012 and, for this purpose, class exemption— (a) means an exemption of general application that applies to a class of reporting entities or transactions; but does not include an exemption granted in relation to a particular reporting entity or transaction.
(6) An exemption under this section that is not a class exemption under subsection (5) must, as soon as practicable after being granted, be— (a) published on an Internet site maintained by or on behalf of the chief executive; and notified in the Gazette; and (b) (c) made available in printed form for purchase on request by members of the public.

(7) A notification in the Gazette for the purpose of subsection (6)(b) does not have to incorporate the exemption.
Section 157(4): replaced, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

Section 157(5): inserted, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

Section 157(6): inserted, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).

Section 157(7): inserted, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).
158 Minister must consult before granting exemption Before granting an exemption under section 157, the Minister must consult with— 104 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Part 4 s 162 (a) (b) the Ministers responsible for the AML/CFT super- visors; and any other persons the Minister considers appropriate having regard to those matters listed in section 157(3).
159 Requirements relating to exemptions (1) The exemption must include an explanation of the reason for granting the exemption.

The exemption— (a) must be granted for a period specified by the Minister but that period must not be more than 5 years; and (b) may, at any time, be varied or revoked by the Minister.

[Repealed] Section 159(3): repealed, on 5 August 2013, by section 77(3) of the Legislation Act 2012 (2012 No 119).
(2) (3) Transitional and savings provisions 160 Transitional and savings provisions Transitional and savings provisions relating to the coming into force of this Act are set out in Schedule 1.
Consequential amendments, repeals, and revocation 161 Amendments to other enactments (1) The enactment specified in Part 1 of Schedule 2 is amended in the manner indicated in that part of that schedule (being consequential amendments relating to the bringing into force of provisions relating to cross-border transportation of cash).

The enactments specified in Part 2 of Schedule 2 are amended in the manner indicated in that schedule (being consequential amendments to other enactments).
The regulations specified in Part 3 of Schedule 2 are revoked.

(2) (3) 162 Amendment to Financial Transactions Reporting Act 1996 consequential on bringing into force of Part 2 The Financial Transactions Reporting Act 1996 is amended by repealing paragraphs (a) to (f), (h), (i), and (k) of the definition of financial institution in section 3(1).
105 Part 4 s 163 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 163 Amendment to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash The Financial Transactions Reporting Act 1996 is amended by repealing Part 5.
106 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Schedule 1 1 (1) (2) (3) 2 3 s 160 Schedule 1 Transitional and savings provisions Offences and breaches of Financial Transactions Reporting Act 1996 This clause applies to an offence under, or a breach of, the Fi- nancial Transactions Reporting Act 1996 that was committed before the commencement of this Act.
If this clause applies, then for the purpose of doing the things specified in subclause (3), the Financial Transactions Report- ing Act 1996 continues to have effect as if this Act had not been enacted.
The things referred to in subclause (2) are as follows: (a) (b) investigating the offence or breach: commencing, continuing, or completing proceedings for the offence or breach: imposing a penalty for the offence or breach (which, for the avoidance of doubt, must be the same as the penalty that applied to the offence or the breach before this Act was enacted).

(c) Barred proceedings Nothing in this Act enables any proceedings to be brought that were barred before the commencement of this Act.
Pending proceedings Any proceedings that have been commenced under the Finan- cial Transactions Reporting Act 1996 before the commence- ment of this Act may be continued and completed after that commencement as if this Act had not been enacted, and the Fi- nancial Transactions Reporting Act 1996 applies accordingly.
107 Schedule 2 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Schedule 2 Consequential amendments Part 1 Amendments to Financial Transactions Reporting Act 1996 relating to cross-border transportation of cash s 161 Section 2(1) Definitions of cash report and Customs officer: repeal.

Definition of cash: omit “except in Part 5 of this Act,”.
Part 2 Amendments to other enactments Crimes Act 1961 (1961 No 43) Section 244: insert after paragraph (b): “(ba) the enforcement or intended enforcement of the Anti- Money Laundering and Countering Financing of Ter- rorism Act 2009; or”.
Criminal Proceeds (Recovery) Act 2009 (2009 No 8) Definition of financial institution in section 5(1): repeal and substi- tute: “financial institution means either a person within the mean- ing of financial institution as defined in section 3 of the Finan- cial Transactions Reporting Act 1996 or as defined in section 5 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009”.
Customs and Excise Act 1996 (1996 No 27) Section 166A(b)(ii): repeal and substitute: “(ii) subpart 6 of Part 2 and sections 114 and 115 of the Anti-Money Laundering and Countering Fi- nancing of Terrorism Act 2009; and”.

Section 166C(4): insert after paragraph (b): “(ba) Anti-Money Laundering and Countering Financing of Terrorism Act 2009:”.
108 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Schedule 2 Part 2—continued Financial Transactions Reporting Act 1996 (1996 No 9) Long Title: insert “the Terrorism Suppression Act 2002 and” after “enforcement of”.

Paragraph (b) of the Long Title: repeal.

Section 15(1)(b): insert after subparagraph (i): “(ia) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terror- ism Suppression Act 2002; or”.
Section 16: insert after paragraph (a): “(ab) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terrorism Suppres- sion Act 2002; or”.

Section 21(2): insert after paragraph (a): “(ab) the enforcement of the Terrorism Suppression Act 2002:”.

Section 22(1)(b): insert after subparagraph (i): “(ia) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terror- ism Suppression Act 2002; or”.
Section 24(1)(a): insert after subparagraph (i): “(ia) that the transaction or proposed transaction is or may be relevant to the enforcement of the Terror- ism Suppression Act 2002; or”.

Section 28: insert after paragraph (d): “(da) the enforcement of the Terrorism Suppression Act 2002:”.

Section 56(1)(b): omit “Parts 2 and 5 of this Act” and substitute “Part 2”.
Misuse of Drugs Act 1975 (1975 No 116) Section 12B(6): insert after paragraph (b): “(ba) the enforcement or intended enforcement of the Anti- Money Laundering and Countering Financing of Ter- rorism Act 2009; or”.
109 Schedule 2 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Part 2—continued Mutual Assistance in Criminal Matters Act 1992 (1992 No 86) Definition of financial institution in section 2(1): repeal and substi- tute: “financial institution means either a person within the mean- ing of financial institution as defined in section 3 of the Finan- cial Transactions Reporting Act 1996 or as defined in section 5 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009”.
Reserve Bank of New Zealand Act 1989 (1989 No 157) Section 41(1): add “and the Anti-Money Laundering and Countering Financing of Terrorism Act 2009”.

Section 41(2): insert “, or the Anti-Money Laundering and Counter- ing Financing of Terrorism Act 2009,” after “by this Act”.

Section 51(5): Countering Financing of Terrorism Act 2009,” after “by this Act”.
Section 51: add: “(9) To avoid doubt, the Governor’s functions and powers include his or her functions and powers under the Anti-Money Laun- dering and Countering Financing of Terrorism Act 2009.” insert “or under the Anti-Money Laundering and Terrorism Suppression Act 2002 (2002 No 34) Section 44(1)(b): insert “or by a reporting entity” after “by a financial institution”.

Section 44(1)(b): insert “or the reporting entity” after “the financial institution”.
Section 44(1)(d)(ii): insert “or reporting entity, as the case may be,” after “that Commissioner and the financial institution”.

Section 44(2): insert “or the reporting entity” after “the financial in- stitution”.

Section 44(4): insert “or reporting entity” after “financial institution” in each place where it appears.
Section 44(5): repeal and substitute: “(5) In this section, section 47, and Schedule 5,— 110 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Schedule 2 Terrorism Suppression Act 2002 (2002 No 34)—continued Part 2—continued “(a) “(b) in the case of a financial institution to which the Finan- cial Transactions Reporting Act 1996 applies, facility, financial institution, suspicious transaction report, and transaction have the meanings given to them in section 2(1) of that Act; and in the case of a reporting entity to which the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 applies, facility, reporting entity, suspicious transaction report, and transaction have the meanings given to them in section 5 of that Act.” Section 47(1)(b)(i): insert “or reporting entity” after “financial insti- tution”.
Section 47A(1)(a): insert after subparagraph (i): “(ia) subpart 6 of Part 2 and sections 114 and 115 of the Anti-Money Laundering and Countering Fi- nancing of Terrorism Act 2009; or”.

Section 47C(5): insert after paragraph (a): “(ab) Anti-Money Laundering and Countering Financing of Terrorism Act 2009:”.

Schedule 5: insert “or reporting entity” after “financial institution” in each place where it appears.
Part 3 Regulations revoked Financial Transactions Reporting (Interpretation) Regulations 1997 (SR 1997/48) 111 Notes Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Reprinted as at 5 December 2013 Reprints notes 1 2 3 General This is a reprint of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 that incorporates all the amendments to that Act as at the date of the last amendment to it.
Legal status Reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by any amendments to that enactment.

Section 18 of the Legislation Act 2012 provides that this reprint, published in electronic form, will have the status of an official version once issued by the Chief Parliamentary Counsel under section 17(1) of that Act.

Editorial and format changes Editorial and made 26 http://www.pco.parliament.govt.nz/editorial-conventions/.
the Legislation Act to sections changes reprints powers format under 2012. using See the 24 of are to also 4 Amendments incorporated in this reprint Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2013 (2013 No 106) Legislation Act 2012 (2012 No 119): section 77(3) Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2012 (2012 No 98) Search and Surveillance Act 2012 (2012 No 24): section 201 Criminal Procedure Act 2011 (2011 No 81): section 413 Anti-Money Laundering and Countering Financing of Terrorism Act Commencement Order 2011 (SR 2011/221) Financial Markets Authority Act 2011 (2011 No 5): section 82 Insurance (Prudential Supervision) Act 2010 (2010 No 111): section 241(2) New Zealand Institute of Chartered Accountants Amendment Act 2010 (2010 No 74): section 10 112 Reprinted as at 5 December 2013 Anti-Money Laundering and Countering Financing of Terrorism Act 2009 Notes 12 Wellington, New Zealand: Published under the authority of the New Zealand Government—2013 113