AML/CFT May Newsletter
In this Newsletter:
- New guidance released
- Warnings issued by FMA
- AML/CFT Audits – 2020 and 2021
- Kiwi Access Cards
- In the news
- Training – Open courses
- Training – In-house
1. New guidance released
The DIA have recently released 3 new pieces of guidance.
- NZ Police update following the Christchurch Terrorist attacks (April 2019)
The New Zealand Police have released this update following the Christchurch Terrorist attacks on 15 March
- Virtual Asset Service Providers (April 2019)
- High Value Dealers Factsheet (March 2019)
So, what does this guidance mean for reporting entities?
The NZ Police update
Following the Christchurch terrorist attacks on 15 March, the NZ Police has published an update to reflect the heightened national threat level, and this means Reporting Entities (REs) across different sectors will now have additional obligations to address these measures.
In summary, REs will now need to (1) consider the indicators of Money Laundering (ML) as well as Terrorism Financing (TF) typologies and (2) be aware of the New Zealand designating terrorist entities and persons. We recommend REs to assess the applicability of the above and address them in the AML/CFT documentation.This update also includes a selection of Suspicious Activity Reporting indicators relating to TF, weapons proliferation and security; it predominately addresses indicators relating to high risk jurisdictions and certain unusual account activities.
Information on ML/TF typologies and indicators are available for you to read here. This guidance details the reporting procedures and expectations of the NZ Financial Intelligence Unit (FIU), regarding Suspicious Activity reporting (SAR)/Prescribed Transaction Reporting (PTR)/Suspicious Property Reporting (SPR) reporting. It also includes common typologies and sector specific ML/TF indicators and warnings, which the REs should consider implementing into their current transaction monitoring practices.
The designation lists of terrorist entities are regularly updated, and it is available for you to read here. REs should assess whether their current client base indicates the need for screening of the designation lists and implement accordingly. All changes should be documented in the current compliance programme.
The full NZ Police update is available for you to read here
Virtual Asset Service Providers (VASPs)
The DIA published an update on VASPs that details the type of VASPs that are captured as REs. This update also gives references to relevant FATF recommendations.
Reporting entities who are virtual currency exchange providers are recommended to get in touch with DIA to clarify their AML/CFT responsibilities. In a few cases, Financial Markets Authority (FMA) may be the supervisor depending on the services provided. However, VASPs should contact DIA as the lead AML/CFT contact.
The Virtual Asset Service Providers update is available for you to read here
High Value Dealers (HVD)
The Department of Internal Affairs (DIA) published “High Value Dealers: AML/CFT Factsheet March 2019” recently. The factsheet includes details on the AML/CFT obligations for HVDs.
This means that entities who regularly deal with high value goods will need to access themselves against the HVD criteria set out under section 5(1) of the Act, to determine whether they are captured as a reporting entity, and consequently have compliance obligations in accordance with the Act from 1 August 2019.
The High Value Dealers Factsheet is available for you to read here
2. Ten formal AML/CFT warnings issued by FMA
The Financial Markets Authority (FMA) has issued formal warnings to 10 reporting entities under Section 80 of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act).
The FMA carried out a risk-based assessment of independent audit reports for reporting entities it supervises in February this year, targeting 69 reporting entities. These warnings relate to audit timings, therefore this notice from FMA is important reading for all Compliance Officers.
Read more here.
3. AML/CFT Audits – 2020 and 2021
The phase 2 entities (Lawyers, Accountants, Real Estate) will all require audits in 2020 or 2021 and we are now planning well in advance for audit engagements. If you have audit requirements in 2020 we encourage early engagement with your auditor.
4. Kiwi Access Card becomes new 18+ card
A new card called the ‘Kiwi Access Card’ has now replaced the 18+ card and we expect you will start to see more of these.
For more information on the Kiwi Access Card, click here
5. In the News
Standard Chartered fined $1.1bn for money-laundering and sanctions breaches
Standard Chartered has been ordered to pay $1.1bn (£842m) by US and UK authorities to settle allegations of poor money-laundering controls and breaching sanctions against countries including Iran.
The British bank has agreed to pay $947m to American agencies, including the US Department of Justice, over allegations that it violated sanctions against a string of countries including Iran.
Finance adviser reviews FATF action plan implementation
Monday 6 May, ISLAMABAD: The Prime Minister’s Adviser on Finance, Dr Abdul Hafeez Sheikh, has reviewed implementation on the recommendations of the Financial Action Task Force (FATF).
Secretary Finance gave a briefing during the meeting over the recommendations from FATF, a global body that combats terror financing and money laundering.
Implementation on the FATF recommendations is critical, the finance adviser told officials at the meeting, ordering all concerned departments to work 24 hours in order to ensure their implementation.
6. Compliance Officer and Customer Due Diligence training courses:
Dates of upcoming AML/CFT Training Courses:
Christchurch – 12 June
Auckland – 25 July
Wellington – 31 July
Customer Due Diligence
Wellington – 26 June
Auckland – 04 July
Christchurch – 11 July
7. Training – In-house
If you would prefer more tailored training, we can provide AML training at all levels to your team at your place of work.
Whether you are interested in a refresher course or an intensive workshop, we can deliver customised workshops tailored to your particular needs and industry.
Our eLearning platform allows those training in AML/CFT to study from the comfort of their own home or office, with the luxury of completing course material in their own time. We currently have five open modules available. The open modules have been developed and designed by AML Solutions and covers the New Zealand AML/CFT legislation and Supervisor guidance.
We have two online training courses available tailored specifically for Lawyers and Accountants. Please head to our website for more information.