Assistance available to become and remain compliant

Overview

If your accounting practice is a “Reporting Entity” under the AML/CFT Act (Act), then the Act requires the accounting practice to produce a Risk Assessment and Compliance Programme for the purposes of the Act. This will also include the appointment of a compliance officer and the need to comply with the Act from 1 October 2018.

You will need to assess whether the accounting practice is captured based on the services you offer your customers. See below for information on Captured Services, Risk Assessment, Compliance Programme and on-going obligations. ,

If you would like to understand how AML Solutions can help with your compliance please do complete the form to the right or call us on 0-9 520 1144

Key Issues Affecting Accounting Firms

Some particular key issues that we see arising for accounting firms include:

  • assessing capture under the Act including whether procedures should be applied firm-wide or to specific teams.
  • appointment of the AML/CFT Compliance Officer and whether additional resources are required to support that person.
  • collation of granular data in respect of existing services, customers, delivery channels, jurisdictions to include in the first AML/CFT Risk Assessment.
  • whether key obligations (such as customer due diligence (CDD)) will be centralised or implemented by front-line staff.
  • application of CDD processes in the context of referrals or instructions from other professional firms.
  • processes for identifying higher risk customers.
  • ensuring efficiency in the way CDD is stored (e.g. ensuring that the identification of one individual can be linked to multiple entities and minimising re-identification of the same individuals).
  • material change and ongoing CDD – procedures for when CDD will be triggered on your existing client base.
  • the overlay of AML/CFT monitoring processes to existing trust account rules and procedures.
  • implementation of IT systems changes to align with AML/CFT obligations.

Request compliance assistance


Development of a Risk AssessmentDevelopment of a Compliance ProgrammeReview of your exisiting documentsReview or testing of your current policies and proceduresAML health check or Pre Audit reviewIndependent AML statutory AuditStaff TrainingAMLHub compliance portalGeneral AML/CFT support

Please reference the AML/CFT Amendment Act 2017 : Section 5 amended (Interpretation)

Designated non-financial business or profession means—

(a) a law firm, a conveyancing practitioner, an incorporated conveyancing firm, an accounting practice, a real estate agent, or a trust and company service provider, who, in the ordinary course of business, carries out 1 or more of the following activities:

(i) acting as a formation agent of legal persons or legal arrangements:

(ii) acting as, or arranging for a person to act as, a nominee director or nominee shareholder or trustee in relation to legal persons or legal arrangements:

(iii) providing a registered office or a business address, a correspondence address, or an administrative address for a company, or a partnership, or for any other legal person or arrangement, unless the office or address is provided solely as an ancillary service to the provision of other services (being services that do not constitute an activity listed in this subparagraph or subparagraphs (i), (ii), and (iv) to (vi)):

(iv) managing client funds (other than sums paid as fees for professional services), accounts, securities, or other assets:

(v) providing real estate agency work (within the meaning of section 4(1) of the Real Estate Agents Act 2008) to effect a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008):

(vi) engaging in or giving instructions on behalf of a customer to another person for—

(A) any conveyancing (within the meaning of section 6 of the Lawyers and Conveyancers Act 2006) to effect a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008), namely,—

  • the sale, the purchase, or any other disposal or acquisition of a freehold estate or interest in land:
  • the grant, sale, or purchase or any other disposal or acquisition of a leasehold estate or interest in land (other than a tenancy to which the Residential Tenancies Act 1986 applies):
  • the grant, sale, or purchase or any other disposal or acquisition of a licence that is registrable under the Land Transfer Act 1952:
  • the grant, sale, or purchase or any other disposal or acquisition of an occupation right agreement within the meaning of section 5 of the Retirement Villages Act 2003:

 

(B) a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008); or

(C) the transfer of a beneficial interest in land or other real property; or

(D) a transaction on behalf of any person in relation to the buying, transferring, or selling of a business or legal person (for example, a company) and any other legal arrangement; or

(E) a transaction on behalf of a customer in relation to creating, operating, and managing a legal person (for example, a company) and any other legal arrangement

Once the reporting entity has achieved initial compliance with the Act by producing a Risk Assessment and Compliance Programme it must meet a number of ongoing obligations. These include:

  • Reviewing the Risk Assessment and Compliance Programme to ensure that they remain current and it identify any deficiencies in their effectiveness.
  • Filing an annual report on its Risk Assessment and Compliance Programme with the Supervisor.
  • Ensuring that the Risk Assessment and Compliance Programme are audited by an independent auditor every two years or at any other time at the request of the Supervisor.

Section 58(1) requires the Company to undertake an assessment of the risk of money laundering and the financing of terrorism that it may reasonably expect to face in the course of its business. The Risk Assessment must be in writing and must:

  • Identify the risks faced by the Company in the course of its business.
  • Describe how the Company will ensure that the assessment remains current.
  • Enable the Company to determine the level of risk involved in relation to relevant obligations under the Act.

In assessing the risk, the Company must have regard to the following:

  • The nature, size and complexity of its business.
  • The products and services it offers.
  • The methods by which it delivers products and services to its customers.
  • The types of customers it deals with.
  • The countries it deals with.
  • The institutions it deals with.
  • Any applicable guidance material produced by the AML/CFT Supervisors.
  • Any other factors that may be provided for in regulations.

Section 56(1) requires the Company to establish, implement and maintain a Compliance Programme that includes internal procedures, policies and controls to:

  • Detect money laundering and the financing of terrorism.
  • Manage and mitigate the risk of money laundering and financing of terrorism.

The Compliance Programme must be based on the Risk Assessment and include adequate and effective procedures, policies and controls for:

  • Vetting relevant managers and employees.
  • Training relevant managers and employees.
  • Complying with customer due diligence requirements.
  • Reporting suspicious transactions.
  • Record keeping.
  • Monitoring and managing compliance with, and the internal communication of and training in, those procedures, policies and controls.
  • Undertaking certain other activities specified in s57 of the Act.

Our awards

Anti-Money Laundering Firm of the Year – New Zealand

Finance Monthly Awards, 2014-16

“Most Outstanding Established Business”

David Awards, 2016

“Most Innovative Business”

David Awards, 2016

“Best Small/Medium Business Of The Year”

Newmarket Business Awards, 2017

Queries about how Phase 2 will affect you?