Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Bill
Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Bill
Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Bill
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Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Bill
Government Bill
342—1
Explanatory note
General policy statement
The Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Bill (the Bill) is an omnibus Bill introduced under Standing Order 267(1)(c) that amends the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 and other legislation administered by the Ministry of Justice. That Standing Order provides that an omnibus Bill to amend more than 1 Act may be introduced if the Business Committee has agreed to the Bill’s introduction as an omnibus Bill.
The Bill has the objectives of—
delivering regulatory relief to businesses; and
aligning New Zealand’s domestic system with international expectations and standards; and
providing better intelligence and enforcement tools to tackle organised crime.
The Bill delivers regulatory relief by giving reporting entities greater autonomy to carry out simplified or enhanced customer due diligence, and more discretion to set the information that they need to collect to mitigate their specific business risks.
The Bill closes a gap in New Zealand’s ability to meet its international obligations by establishing a legal framework for the supervision of compliance by reporting entities with United Nations (UN) Security Council targeted financial sanctions. It introduces mandatory obligations for reporting entities to assess and mitigate relevant sanctions risks, while expanding the roles of the AML/CFT supervisor and the Financial Intelligence Unit of Police (the FIU) to support the implementation of these sanctions-related obligations.
International standards can be met by replacing designated business groups with mandatory and voluntary reporting frameworks. The mandatory framework will require a group-wide AML/CFT programme to establish a consistent and aligned approach to compliance throughout its related group, helping to identify additional risks arising from its common interests, and to reduce inconsistencies that may be exploited by criminals. Both the mandatory and voluntary frameworks will require reporting entities to assign a lead entity to have oversight of shared AML/CFT risk assessments and policies.
The Bill enhances supervisory powers and intelligence functions, introduces new offences, establishes an infringement offence regime for minor non-compliance, increases maximum penalties for civil liability acts and offences, and aligns limitation periods with record-keeping requirements. The Bill further improves the intelligence and harm-prevention functions of the system by empowering the FIU to—
gather information from non-reporting entities; and
secure orders for the ongoing production of data by reporting entities; and
seek rapid freezes on high-risk accounts and transactions.
Regulatory impact statements
The Ministry of Justice prepared regulatory impact statements on 18 June 2025 and 22 June 2026 to help inform the main policy decisions taken by the Government relating to the contents of this Bill.
Copies of the regulatory impact statements can be found at—
Consistency with principles of responsible regulation
The Ministry of Justice provided the following documents relating to its review of this Bill, and its process for developing it, for consistency with the principles of responsible regulation under the Regulatory Standards Act 2025:
a consistency accountability statement on 19 June 2026:
a summary of underpinning analysis on 19 June 2026.
Copies of these documents can be found at—
The Ministry of Justice considers that a statement from the responsible Minister under section 11(b) of the Regulatory Standards Act 2025 is not required for this Bill.
Clause by clause analysis
Clause 1 is the Title clause.
Clause 2 provides that the Bill comes into force 1 year after Royal assent.
Part 1Amendments to principal Act
Clause 3 provides that Part 1 of the Bill amends the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the principal Act).
Clause 4 amends section 3 of the principal Act to make supporting the implementation of specified sanctions one of the purposes of the principal Act.
Clause 5 amends section 4 of the principal Act, which provides an overview of the Act. The amendments—
reference the prevention of non-compliance with specified sanctions in the overview of subpart 4 of Part 2; and
reflect the replacement of section 59B of the principal Act, which replaces audits conducted under the principal Act with independent evaluations.
Clause 6 amends section 5 of the principal Act (which sets out the definitions used in the principal Act) to—
replace the definition of AML/CFT to include countering non-compliance with specified sanctions; and
replace the definition of designated business group with new definitions of mandatory reporting group and voluntary reporting group; and
update the definition of law enforcement purposes to include intelligence purposes; and
insert a new definition of specified sanction, which is a prohibition or restriction in relation to dealing with assets or dealing with services imposed under New Zealand law for the purpose of complying with certain UN resolutions that freeze funds or assets or prohibit funds, other assets, financial services, or related services from being made available to certain designated persons or entities; and
insert new definitions relating to the new infringement offence provisions in the Bill and the prevention of non-compliance with specified sanctions.
Clause 7 amends section 6 of the principal Act (which sets out how the principal Act applies to reporting entities) to—
refer to independent evaluations instead of audits; and
insert a reference to non-compliance with specified sanctions.
Clause 8 amends section 14 of the principal Act (which sets out when a reporting entity must conduct standard customer due diligence) to require reporting entities to carry out standard customer due diligence if the circumstances in which a customer was assessed eligible for simplified customer due diligence under new section 18(1)(d) no longer apply.
Clause 9 amends section 15 of the principal Act (which sets out the identity requirements for standard customer due diligence) to set new identity requirements for standard due diligence in relation to trusts.
Clause 10 amends section 16 of the principal Act (which sets out the verification of identity requirements for standard customer due diligence) to provide that reporting entities will not be required to take reasonable steps to satisfy themselves that information collected under section 15 of the principal Act relating only to trusts is correct.
Clause 11 amends section 18 of the principal Act (which sets out the circumstances in which simplified customer due diligence applies) to allow a reporting entity to carry out simplified customer due diligence rather than standard customer due diligence if the reporting entity has assessed, on reasonable grounds, the circumstances as low risk for money laundering and the financing of terrorism in, or based on, their risk assessment undertaken under section 58. Clause 11 also extends the definition of customer to include reporting entities—
that are required to prepare an annual report under section 208(1)(a) to (c) of the Companies Act 1993; or
that are an FMC reporting entity within the meaning of section 451 of the Financial Markets Conduct Act 2013.
Clause 12 replaces section 19 of the principal Act and sets out the identity requirements for simplified customer due diligence.
Clause 13 replaces section 20 of the principal Act, which relates to identity verification requirements in respect of simplified customer due diligence.
Clause 14 repeals section 21 of the principal Act.
Clause 15 amends section 22 of the principal Act (which sets out the circumstances in which enhanced customer due diligence applies) to—
remove the requirement for reporting entities to conduct enhanced customer due diligence in respect of a trust or another vehicle for holding personal assets in some circumstances:
require enhanced customer due diligence to be conducted in respect of a customer who resides in a country identified by the Financial Action Task Force as being a high-risk jurisdiction subject to a call for action:
provide that a reporting entity is not required to conduct or complete enhanced customer due diligence if the reporting entity has determined it is required to make a suspicious activity report to the Commissioner under section 40 of the principal Act and the reporting entity has reasonable grounds to suspect that conducting or completing enhanced customer due diligence would alert the person that the activity has been determined to be a suspicious activity.
Clause 16 repeals section 22A of the principal Act.
Clause 17 amends section 23 of the principal Act (which sets out the identity requirements for enhanced customer due diligence) to require reporting entities, when carrying out enhanced customer due diligence, to obtain the information required under section 15 of the principal Act and any information that is necessary to mitigate the risk of money laundering and financing of terrorism, having regard to their risk assessment undertaken under section 58 of the principal Act.
Clause 18 amends section 24 of the principal Act (which sets out the verification of identity requirements for enhanced customer due diligence) to require reporting entities, when carrying out enhanced customer due diligence, to take reasonable steps to verify the information obtained under section 23 of the principal Act according to the level of risk involved.
Clause 19 amends section 29 of the principal Act (which relates to correspondent banking relationships) to include references to non-compliance with specified sanctions.
Clause 20 amends section 30 of the principal Act (which relates to new or developing technologies, or products, that might favour anonymity) to include a reference to non-compliance with specified sanctions.
Clause 21 amends section 31 of the principal Act (which relates to ongoing customer due diligence and account monitoring) to set out the ongoing customer due diligence and account monitoring necessary for a customer in circumstances assessed as low risk under new section 18(1)(d) of the principal Act.
Clause 22 inserts new sections 31A to 31D and cross-headings into the principal Act.
New section 31A provides that a mandatory reporting group consists of a group of 2 or more persons in which each member of the group is related to each other member within the meaning of new section 5(3) and is—
a reporting entity in New Zealand; or
a person that is resident in any other country and that is supervised or regulated for AML/CFT purposes.
No member of a mandatory reporting group may be a member of another mandatory reporting group or a voluntary reporting group.
New section 31B requires a mandatory reporting group to assign a lead entity and sets out the responsibilities of the lead entity.
New section 31C sets out the circumstances in which 2 or more persons listed in paragraphs (a) to (g) of the definition of voluntary reporting group may form a voluntary reporting group. No member of the voluntary reporting group may be a member of another voluntary reporting group or a mandatory reporting group.
New section 31D requires a voluntary reporting group to assign a lead entity and sets out the responsibilities of the lead entity.
Clause 23 inserts new section 32AA into the principal Act. New section 32AA sets out the circumstances in which a member of a mandatory reporting group may rely on another member to conduct customer due diligence, share information within the group, adopt or share parts of a risk assessment or AML/CFT programme, and make a suspicious activity report, prescribed transaction report, or annual report on behalf of any members of the mandatory reporting group.
Clause 24 amends section 32 of the principal Act (which sets out when a member of a voluntary reporting group may rely on another member of the group) to refer to voluntary reporting groups rather than designated business groups.
Clause 25 amends section 33 of the principal Act (which sets out when a reporting entity may rely on a reporting group or a person in another country) to update a reference to AML/CFT (which is a defined term that has been replaced in this Bill) and repeal section 33(3A).
Clause 26 amends section 36 of the principal Act (which relates to the protection of personal information in the context of mandatory reporting groups and voluntary reporting groups) to update how personal information will be protected by mandatory reporting groups and voluntary reporting groups.
Clause 27 amends section 38 of the principal Act (which creates prohibitions on false customer names and customer anonymity and provides exceptions to those prohibitions) to provide for reporting entities to set up a facility on an anonymous basis or under a false customer name if it is set up for the Commissioner or the New Zealand Security Intelligence Service or the Government Communications Security Bureau for intelligence purposes.
Clause 28 amends section 39A of the principal Act (which is an interpretation provision) to update the definition of suspicious activity to include a reference to where the reporting entity has implemented a specified sanction against a person.
Clause 29 amends section 43 of the principal Act (which allows auditors to report suspicious activities) to include a reference to the enforcement of specified sanctions.
Clause 30 amends section 46 of the principal Act (which is about the disclosure of information relating to suspicious activity reports) to—
allow a reporting entity to disclose information to certain authorised employees of the New Zealand Security Intelligence Service or the Government Communications Security Bureau:
allow reporting entities to disclose information to another member of a mandatory reporting group of which the reporting entity is a member:
allow the New Zealand Police (the Police), the New Zealand Security Intelligence Service, and the Government Communications Security Bureau to disclose information to which section 46 applies for law enforcement and intelligence purposes:
allow the AML/CFT supervisor to disclose information to which section 46 applies to the Police, the New Zealand Security Intelligence Service, and the Government Communications Security Bureau for law enforcement and intelligence purposes:
allow any other person who has information to which section 46 applies to disclose that information only to the Police, the New Zealand Security Intelligence Service, and the Government Communications Security Bureau for law enforcement and intelligence purposes.
Clause 31 amends section 48 of the principal Act (which provides for disclosure of personal information relating to employees or senior managers by the AML/CFT supervisor in some circumstances) to allow the AML/CFT supervisor to disclose personal information about employees and senior managers to regulators other than government agencies, and for intelligence purposes.
Clause 32 amends section 51 of the principal Act (which sets out certain record-keeping obligations) to replace references to audits with references to independent evaluations.
Clause 33 amends section 56 of the principal Act (which requires a reporting entity to have an AML/CFT programme and an AML/CFT compliance officer) to include references to non-compliance with specified sanctions.
Clause 34 inserts new section 56A into the principal Act. New section 56A requires mandatory reporting groups to establish a group AML/CFT programme and sets out what must be included in that programme.
Clause 35 amends section 57 of the principal Act (which sets out minimum requirements for AML/CFT programmes) to include references to non-compliance with specified sanctions.
Clause 36 amends section 58 of the principal Act (which provides for risk assessments) to—
include a reference to non-compliance with specified sanctions; and
enable the risk assessment to set out the circumstances that may be identified as low risk for money laundering or the financing of terrorism and in which simplified customer due diligence may be applied under new section 18(1)(d).
Clause 37 amends section 59 of the principal Act (which provides for the review and audit of risk assessments and AML/CFT programmes) to—
replace references to audits with references to independent evaluations; and
provide that a reporting entity is not required to ensure that any aspect of a risk assessment or AML/CFT programme that relates to specified sanctions is reviewed as required by section 59(2).
Clause 38 amends section 59A of the principal Act (which provides for the audit of compliance with AML/CFT programmes) to—
replace references to audits with references to independent evaluations; and
provide that a high-value dealer is not required to ensure the independent evaluation of its compliance with AML/CFT obligations that relate to specified sanctions.
Clause 39 replaces section 59B of the principal Act (which sets out who must carry out an audit under section 59A of the principal Act) to replace references to audits with references to independent evaluations.
Clause 40 amends section 60 of the principal Act (which requires a reporting entity to prepare an annual AML/CFT report) to replace a reference to an audit with a reference to an independent evaluation.
Clause 41 amends section 61 of the principal Act (which requires a reporting entity to ensure that branches and subsidiaries comply with AML/CFT requirements) to include a reference to non-compliance with specified sanctions.
Clause 42 inserts new sections 67AB and 67AC into the principal Act.
New section 67AB prohibits the purchase or sale of virtual assets by certain cash transactions or a series of related cash transactions, including if they are above an applicable threshold value (which may be set by regulations made under section 153(1)(d) of the principal Act). A virtual asset is a digital representation of value that can be digitally traded or transferred, or used for payment or investment purposes. However, digital representations of fiat currencies and financial products within the meaning of section 7 of the Financial Markets Conduct Act 2013 are not virtual assets.
New section 67AC prohibits a money or value transfer service from accepting a cash transaction or a series of related cash transactions if the total value of the transaction or transactions is equal to or above the applicable threshold value (which may be set by regulations made under section 153(1)(d) of the principal Act) if the purpose of the transaction or transactions is to transfer money or value to a person outside of New Zealand.
Clause 43 amends section 74 of the principal Act (which sets out the 1 penalty only rule) to clarify that the 1 penalty only rule applies to the same or substantially the same instance of conduct.
Clause 44 amends section 78 of the principal Act (which sets out the meaning of a civil liability act) to change the definition of a civil liability act. Section 78 of the principal Act currently provides that a civil liability act occurs when a reporting entity fails to comply with any of the AML/CFT requirements. Clause 44(1) updates this to provide that a civil liability act occurs when a reporting entity fails to adequately comply with any of the AML/CFT requirements. Clause 44(2) adds a breach of new section 67AB into the list of possible compliance failures.
Clause 45 amends section 79 of the principal Act (which sets out the possible responses to a civil liability act) to provide that the AML/CFT supervisor may refer an allegation of a civil liability act to a licensing body relevant to the reporting entity.
Clause 46 amends section 90 of the principal Act (which sets out the pecuniary penalties for a civil liability act specified in section 78 of the principal Act) to update the maximum pecuniary penalties for a civil liability act.
Clause 47 amends section 91 of the principal Act (which is an offence provision relating to a reporting entity that knowingly or recklessly engages in conduct constituting a civil liability act) to set out the maximum penalties for the offence.
Clause 48 amends section 92 of the principal Act (which is an offence provision relating to the failure of a reporting entity to report a suspicious activity) to—
extend the ambit of the offence by including a reference to the enforcement of specified sanctions; and
increase the maximum penalties for the offence.
Clause 49 amends section 93 of the principal Act (which is an offence provision relating to a person providing false or misleading information in connection with suspicious activity reports or prescribed transaction reports) to increase the maximum penalties for the offence.
Clause 50 amends section 94 of the principal Act (which is an offence provision relating to the unlawful disclosure of suspicious activity reports or prescribed transaction reports) to—
extend the ambit of the offence by including references to non-compliance with specified sanctions; and
increase the maximum penalties for the offence.
Clause 51 amends section 95 of the principal Act (which is an offence provision relating to the failure of a reporting entity to keep or retain adequate records relating to suspicious activities or prescribed transactions) to increase the maximum penalties for the offence.
Clause 52 amends section 96 of the principal Act (which is an offence provision relating to the obstruction by any person of any investigation relating to suspicious activity reports or prescribed transaction reports) to increase the maximum penalties for the offence.
Clause 53 amends section 97 of the principal Act (which is an offence provision relating to a person acting in contravention to section 47(1) or 48A(1) of the principal Act without lawful justification or excuse) to increase the maximum penalties for the offence.
Clause 54 amends section 99 of the principal Act (which sets out the time limit for the prosecution of offences relating to civil liability acts, suspicious activity reports, and prescribed transaction reports) to extend the limitation period in respect of an offence under any of sections 91 to 97 of the principal Act from 3 years to 5 years.
Clause 55 repeals section 100 of the principal Act, which set out the penalties for persons who commit an offence under any of sections 91 to 97 of the principal Act. Those penalties are now set out separately for each offence provision.
Clause 56 amends section 101 of the principal Act (which is an offence provision relating to a person structuring certain transactions to avoid the application of any AML/CFT requirements) to increase the maximum penalties for the offence.
Clause 57 inserts new section 101A into the principal Act. New section 101A is an offence provision relating to a person structuring a legal person or legal arrangement to avoid the application of AML/CFT structures.
Clause 58 amends section 102 of the principal Act (which is an offence provision relating to a person wilfully obstructing an AML/CFT supervisor) to increase the maximum penalties for the offence.
Clause 59 amends section 103 of the principal Act (which is an offence provision relating to a person, without reasonable excuse, provides information to the AML/CFT supervisor knowing that information to be false or misleading in any material respect) to increase the maximum penalties for the offence.
Clause 60 inserts new sections 103A and 103B into the principal Act. Those sections mirror sections 102 and 103 of the principal Act (which are offence provisions relating to a person wilfully obstructing the AML/CFT supervisor or providing false or misleading information to the AML/CFT supervisor), but relate to conduct against the Commissioner rather than the AML/CFT supervisor.
Clause 61 amends section 104 of the principal Act (which sets out the time limit for the prosecution of offences relating to non-compliance with AML/CFT requirements) to insert references to new sections 103A and 103B and extend the limitation period for offences against sections 101, 102, 103, and 105A and new sections 103A and 103B from 3 years to 5 years.
Clause 62 repeals section 105 of the principal Act, which set out the penalties for persons who commit an offence under any of sections 101 to 103 of the principal Act. Those penalties are now set out separately for each offence provision.
Clause 63 amends section 105A of the principal Act (which is an offence provision relating to the contravention of section 67A of the principal Act) to increase the maximum penalties for the offence.
Clause 64 inserts new section 105B into the principal Act. New section 105B creates a new offence for the knowing or reckless contravention of new section 67AB or 67AC and sets out the maximum penalties for the offence.
Clause 65 amends section 106 of the principal Act (which is an offence provision relating to a person failing, without reasonable excuse, to make or cause to be made a cash report as required by subpart 6 of Part 2 of the principal Act when the person has moved cash into or out of New Zealand) to increase the maximum penalties for the offence.
Clause 66 amends section 107 of the principal Act (which is an offence provision relating to a person failing, without reasonable excuse, to make or cause to be made a cash report as required subpart 6 of Part 2 when the person has received cash in New Zealand from overseas) to increase the maximum penalties for the offence.
Clause 67 amends section 108 of the principal Act (which is an offence provision relating to a person structuring a cross-border transportation of cash to avoid the application of any AML/CFT requirements) to increase the maximum penalties for the offence.
Clause 68 amends section 110 of the principal Act (which is an offence provision relating to a person, without reasonable excuse, who makes or causes to be made a cash report as required by subpart 6 of Part 2, knowing it is false or misleading in any material respect) to increase the maximum penalties for the offence.
Clause 69 amends section 111 of the principal Act (which is an offence provision relating to a person obstructing a Customs officer or, without reasonable excuse, failing to answer questions from a Customs officer) to increase the maximum penalties for the offence.
Clause 70 repeals section 112 of the principal Act, which set out the penalties for persons who commit an offence under sections 106, 107, 108, 110, and 111 of the principal Act. Those penalties are now set out separately for each offence provision.
Clause 71 inserts into the principal Act new subpart 3A of Part 3, which relates to infringement offence.
New sections 115A to 115G are standard provisions about infringement offences and set out—
how a person who is alleged to have committed an infringement offence may be proceeded against:
when an infringement notice may be issued:
when an enforcement officer may revoke an infringement notice:
what information must be contained in an infringement notice:
how an infringement notice may be served:
how infringement fees may be paid:
what information must be contained in a reminder notice.
New section 115H sets out the conduct that is an infringement offence under the principal Act.
Clause 72 amends section 116 of the principal Act (which sets out definitions relating to search and seizure) to repeal the definition of enforcement officer.
Clause 73 amends section 117 of the principal Act (which provides for search warrants) to allow for search warrants to be issued in respect of vehicles and other things. This is consistent with the Search and Surveillance Act 2012.
Clause 74 amends section 118 of the principal Act (which sets out powers relating to search warrants) to allow enforcement officers to use powers available under a search warrant in respect of vehicles and other things.
Clause 75 inserts new sections 129A to 129O into the principal Act.
New section 129A provides for the Commissioner to apply to an issuing officer for an ongoing production order in relation to specified financial records relating to a person that are held by a reporting entity and that are relevant to analysing information received by the Commissioner under the Bill, and sets out the information that must be included in an application for an ongoing production order.
New section 129B sets out the matters an issuing officer must be satisfied of when making an ongoing production order in relation to specified financial records relating to a person.
New section 129C sets out the information that an ongoing production order must contain, including—
what the ongoing production order may require a reporting entity to do:
the name of the person that the specified financial records relate to, the specified financial records required to be given, the duration of the order, and the time by which, and the way in which, the specified financial records must be produced:
the grounds on which the order is made.
The order may describe the specified financial records required to be given by reference to a class or category of specified financial records, and may specify an individual (whether by name or by reference to a position held in the reporting entity) who is required to comply with the order.
New section 129D sets out when the Commissioner may apply to an issuing officer for a temporary freezing order. A temporary freezing order requires a reporting entity to freeze a transaction or facility, or class of transactions or facilities, held by or associated with a specified person. The Commissioner may apply for a temporary freezing order if—
the Commissioner has reasonable grounds to believe that the transaction or facility, or class of transactions or facilities, is relevant to certain offences that have been, are being, or will be committed and that the funds or assets moved by the transaction or class of transactions, or held by the facility or class of facilities, will be disbursed outside New Zealand or used in connection with a category 3 offence or a category 4 offence (within the meaning of section 6 of the Criminal Procedure Act 2011); or
an international authority authorised to perform functions broadly equivalent to the Commissioner’s financial intelligence functions requests that the transaction or facility be frozen.
New section 129D also sets out the contents of an application for a temporary freezing order.
New section 129E provides for an issuing officer to make a temporary freezing order, on or without notice to a respondent. A temporary freezing order may restrain a specified person named in the order from carrying out a transaction or class of transactions, or using a facility or class of facilities. The order may be issued for a period of up to 7 days after the date of the order and must provide for certain costs to be met for the specified person, having regard to all facilities available to that person.
New section 129F sets out the information that a temporary freezing order must contain. New section 129F(2) requires the temporary freezing order to give notice that there is no right of appeal against the order, and an extension for up to 28 days may be sought by the Commissioner and will be separately notified if made.
New section 129G sets out when the Commissioner may apply for a temporary freezing order to be extended and what must be included in an application for an extension. It also allows a High Court Judge, on the request of the Commissioner, to consider the application without notice being given to the specified person named in the order (and makes related provisions).
New section 129H provides for a High Court Judge to extend a temporary freezing order for a period of up to 28 days after the date of the extension. The extension may be granted only once. The High Court Judge may make the extension subject to any conditions the judge thinks fit, including conditions that provide for certain expenses of the specified person to be met.
New section 129I sets out when a temporary freezing order no longer has effect. This will usually be when the period for which the order is made or extended expires. However, the order continues to have effect after this period if an application has been made to extend the order or proceedings have been commenced for an associated restraining order. In such cases, the temporary freezing order instead expires when the application or proceedings are finally determined. In addition, if the Commissioner no longer has reasonable grounds to suspect the matters in new section 129D(1)(a)(i) and (ii), or if the international authority authorised to perform functions broadly equivalent to the Commissioner’s financial intelligence functions has informed the Commissioner that the transaction or facility, or class of transactions or facilities, no longer needs to be frozen, then—
the Commissioner must, as soon as practicable, inform each reporting entity identified in a temporary freezing order or its extension that the grounds on which the order was made are no longer relevant and that the reporting entity is no longer required to comply with the order; and
upon receiving such a notification, the reporting entity must no longer comply with the order.
New section 129J sets out the rules for compensation in relation to damages or costs incurred due to a temporary freezing order or its extension.
New section 129K allows a specified person named in an extended temporary freezing order to apply to a High Court Judge to lift the order, if certain conditions are met.
New section 129L allows the Commissioner and certain other persons to make applications to a High Court Judge for further orders in relation to extended temporary freezing orders.
New sections 129M and 129N provide that a High Court Judge may, on application under new section 129K or 129L, make further orders (including, without limitation, orders varying the transactions or facilities that are subject to the temporary freezing order and orders varying conditions attached to the temporary freezing order) or lift a temporary freezing order. They also provide that the High Court Judge may lift the order only if satisfied that it would be contrary to the interests of justice for the temporary freezing order to remain in place, having regard to certain matters.
New section 129O sets out the rules of service for notices relating to temporary freezing orders.
Clause 76 expands the functions of AML/CFT supervisors by amending section 131 of the principal Act to include references to non-compliance with specified sanctions.
Clause 77 amends section 132 of the principal Act (which sets out the powers of the AML/CFT supervisor) to replace a reference to designated business groups with a reference to voluntary reporting groups.
Clause 78 amends section 139 of the principal Act to provide for intelligence purposes to be included in the Commissioner’s, the New Zealand Customs Service’s, and the AML/CFT supervisor’s power to disclose information that is not personal information.
Clause 79 amends section 140 of the principal Act to clarify the power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes, and include any legislation relating to specified sanctions in the list of relevant enactments.
Clause 80 amends section 142 of the principal Act (which sets out the financial intelligence functions of the Commissioner) to include references to non-compliance with specified sanctions and intelligence purposes.
Clause 81(1) inserts new section 143(1)(aa) into the principal Act to allow the Commissioner to order the production of or access to all records, documents, or information from any person (other than an individual) that is reasonably considered by the Commissioner to hold information that is relevant to analysing information received by the Commissioner under the principal Act, with or without a court order. Clause 81(2), which inserts new section 143(1A) into the principal Act, sets out the time frame for the production of records, documents, or information under existing section 143(1)(a) and new section 143(1)(ab).
Clause 82 amends section 144 of the principal Act (which sets out when and how the Commissioner may delegate their powers) to allow the Commissioner to delegate the new powers of the Commissioner to a constable of a level of position not less than inspector or an equally senior or more senior Police employee.
Clause 83 amends section 145 of the principal Act (which requires the Commissioner to issue guidelines relating to the reporting of suspicious activities) to require the Commissioner to issue guidelines setting out any features of a transaction or other activity that may give rise to a suspicion that the transaction or other activity is relevant to the enforcement of a specified sanction.
Clause 84 inserts new section 148A and a cross-heading above it into the principal Act. New section 148A provides that the investigative and intelligence branches of the New Zealand Police may, for the purposes of law enforcement, access suspicious activity reports and prescribed transaction reports made to the Commissioner under the principal Act.
Clause 85 expands the functions of the AML/CFT co-ordination committee by amending section 152 of the principal Act to insert a reference to non-compliance with specified sanctions.
Clause 86 amends section 153 of the principal Act to set out new regulation-making powers relating to—
the form of applications under new section 129D for temporary freezing orders and the form of temporary freezing orders made under new section 129E:
infringement offences.
Clause 87 amends section 154 of the principal Act to include a reference to non-compliance with specified sanctions in the list of matters to which the Minister must have regard before recommending the making of regulations under that section.
Clause 88 inserts new section 154A into the principal Act, which sets out regulation-making powers relating to virtual assets.
Clause 89 amends section 156 of the principal Act to provide that the Minister is not required to comply with certain consultation requirements when consolidating regulations made under new section 154A or making minor amendments to those regulations.
Clause 90 amends section 156B of the principal Act (which provides that the AML/CFT supervisor may make rules) to—
replace a reference to designated business groups with a reference to mandatory reporting groups and voluntary reporting groups; and
clarify that the AML/CFT supervisor may make rules about the process that must be followed for checking whether a person is subject to a specified sanction.
Clause 91 amends section 156F of the principal Act (which provides that the AML/CFT supervisor may make notices) to replace references to designated business groups with references to voluntary reporting groups.
Clause 92 amends section 157 of the principal Act (which provides that the Minister may grant exemptions) to include a reference to non-compliance with specified sanctions.
Clause 93 amends section 159B of the principal Act (which provides that the AML/CFT supervisor and the Commissioner may approve forms) to provide for the Commissioner to approve the forms of temporary freezing orders and ongoing production orders (and the forms of applications for such orders).
Part 2Amendments to other enactments
Subpart 1—Amendments to Crimes Act 1961
Clauses 94 and 95 amend section 243 of the Crimes Act 1961, which relates to offences for money laundering, to increase the maximum penalties for those offences.
Clause 95(1) amends section 243(2) of the Crimes Act 1961 to increase the maximum penalty from 7 years to 14 years of imprisonment for a person who, in respect of any property that is the proceeds of an offence, engages in a money laundering transaction knowing or believing that all or part of the property is the proceeds of an offence, or being reckless as to whether or not the property is the proceeds of an offence.
Clause 95(2) amends section 243(3) of the Crimes Act 1961 to increase the maximum penalty from 5 years to 10 years of imprisonment for a person who obtains or has in their possession any property (being property that is the proceeds of an offence committed by another person)—
with intent to engage in a money laundering transaction in respect of that property; and
knowing or believing that all or part of the property is the proceeds of an offence, or being reckless as to whether or not the property is the proceeds of an offence.
Subpart 2—Consequential amendments
Clause 96 provides for the enactments specified in the Schedule to be amended as set out in that schedule.
The Schedule provides for consequential amendments to other enactments.
Hon Nicole McKee
Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Bill
Government Bill
342—1
Contents
The Parliament of New Zealand enacts as follows:
1 Title
This Act is the Anti-Money Laundering and Countering Financing of Terrorism (Omnibus) Amendment Act 2026.
2 Commencement
This Act comes into force on the first anniversary of Royal assent.
Part 1 Amendments to principal Act
3 Principal Act
This Part amends the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.
4 Section 3 amended (Purpose)
After section 3(1)(a), insert:
(aa)
to support the implementation of specified sanctions; and
5 Section 4 amended (Overview)
(1)
In section 4(3)(d), replace “money laundering and the financing of terrorism”
with “money laundering, the financing of terrorism, and non-compliance with specified sanctions”
in each place.
(2)
In section 4(3)(d), replace “audit”
with “independently evaluate certain parts of”
.
6 Section 5 amended (Interpretation)
(1)
In section 5(1), replace the definition of AML/CFT with:
AML/CFT—
(a)
means anti-money laundering and countering the financing of terrorism; and
(b)
includes countering non-compliance with specified sanctions
(2)
In section 5(1), repeal the definition of designated business group.
(3)
In section 5(1), definition of financing of terrorism, replace “has the same meaning as”
with “has the meaning given to financing of, or provision of material support for, terrorism”
.
(4)
In section 5(1), definition of law enforcement purposes, after “law enforcement”
, insert “or intelligence”
.
(5)
In section 5(1), definition of law enforcement purposes, after paragraph (a)(ii), insert:
(iia)
an offence in relation to non-compliance with specified sanctions; or
(6)
In section 5(1), definition of law enforcement purposes, after paragraph (b)(vii), insert:
(viii)
any legislation relating to specified sanctions:
(7)
In section 5(1), definition of legal arrangement, paragraph (d), replace “money laundering or the financing of terrorism”
with “money laundering, the financing of terrorism, or non-compliance with specified sanctions”
.
(8)
In section 5(1), insert in their appropriate alphabetical order:
accounting period has the same meaning as in section 5(1) of the Financial Reporting Act 2013
designated person—
(a)
means an individual or entity designated by or under a relevant UN resolution; and
(b)
includes, without limitation,—
(i)
a designated terrorist entity under the Terrorism Suppression Act 2002:
(ii)
a designated person under the United Nations Sanctions (Democratic People’s Republic of Korea) Regulations 2017:
(iii)
a designated person under the United Nations Sanctions (Iran) Regulations 2025
enforcement officer means the AML/CFT supervisor or the Commissioner and includes a person appointed under section 141 by the AML/CFT supervisor
infringement fee, in relation to an infringement offence, means the infringement fee for the offence specified in the regulations
infringement offence means an offence against any provision identified in regulations as being an infringement offence
issuing officer has the same meaning as in section 3(1) of the Search and Surveillance Act 2012
mandatory reporting group means a group of 2 or more persons to which section 31A applies
proliferation financing means providing funds or financial services that are used, in whole or in part, for the manufacture, acquisition, possession, development, export, trans-shipment, brokering, transport, transfer, stockpiling, or use of nuclear, chemical, or biological weapons and their means of delivery and related materials (including both technologies and dual-use goods used for non-legitimate purposes)
relevant UN resolution means a resolution of the Security Council of the United Nations, adopted under the Charter of the United Nations, that—
(a)
has either or both of the following purposes:
(i)
the prevention and suppression of terrorism and the financing of terrorism:
(ii)
the prevention, suppression, and disruption of the proliferation of weapons of mass destruction and proliferation financing; and
(b)
requires New Zealand to do either or both of the following for those purposes:
(i)
freeze funds or other assets of a designated person:
(ii)
prohibit funds, other assets, financial services, or related services from being made available, directly or indirectly, to or for the benefit of a designated person
specified sanction means legislation that does either or both of the following for the purpose of complying with a relevant UN resolution:
(a)
requires funds or other assets of a designated person to be frozen:
(b)
prohibits funds, other assets, financial services, or related services from being made available, directly or indirectly, to or for the benefit of a designated person
turnover has the same meaning as in section 2(1) of the Commerce Act 1986
virtual asset—
(a)
means a digital representation of value that can be—
(i)
digitally traded or transferred; or
(ii)
used for payment or investment purposes; but
(b)
does not include—
(i)
a digital representation of a fiat currency; or
(ii)
a financial product within the meaning of section 7 of the Financial Markets Conduct Act 2013
voluntary reporting group means a group of 2 or more persons to which section 31C applies and in which each member of the group is—
(a)
a related lawyer or a law firm that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes), or a subsidiary of a law firm; or
(b)
a related conveyancing practitioner or an incorporated conveyancing firm that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes), or a subsidiary of an incorporated conveyancing firm; or
(c)
a related accounting practice that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes), or a subsidiary of an accounting practice; or
(d)
a related trust and company service provider that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes), or a subsidiary of a trust and company service provider; or
(e)
a related real estate agent that is a reporting entity in New Zealand (or the equivalent person in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes), or a subsidiary of a real estate agent; or
(f)
a related high-value dealer that is a reporting entity in New Zealand (or an equivalent person resident outside New Zealand in a country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes), or a subsidiary of a high-value dealer; or
(g)
an entity or a class of entities prescribed by regulations
(9)
Repeal section 5(2).
(10)
Repeal section 5(3).
(11)
In section 5(4), replace “and designated business group”
with “, mandatory reporting group, and voluntary reporting group”
.
7 Section 6 amended (Application of this Act to reporting entities)
(1)
In section 6(4)(d)(ii)(I), replace “audit”
with “independently evaluate”
.
(2)
In section 6(4)(e), replace “money laundering or financing of terrorism”
with “money laundering, financing of terrorism, or non-compliance with specified sanctions”
.
8 Section 14 amended (Circumstances when standard customer due diligence applies)
After section 14(1)(c), insert:
(ca)
if, in relation to a customer assessed as eligible for simplified customer due diligence under section 18(1)(d), the circumstances in which the customer was assessed as eligible for simplified customer due diligence no longer apply:
9 Section 15 amended (Standard customer due diligence: identity requirements)
After section 15(e), insert:
(ea)
in the case of a customer that is a discretionary trust or a charitable trust or a trust that has more than 10 beneficiaries, a description of—
(i)
each class or type of beneficiary:
(ii)
if the trust is a charitable trust, the objects of the trust; and
(eb)
in the case of any other trust, the name and date of birth of each beneficiary of the trust; and
10 Section 16 amended (Standard customer due diligence: verification of identity requirements)
(1)
In section 16(1)(a), after “section 15(d)”
, insert “, (ea), and (eb)”
.
(2)
In section 16(1A), after “section 15(d)”
, insert “, (ea), and (eb)”
.
11 Section 18 amended (Circumstances when simplified customer due diligence applies)
(1)
After section 18(1)(c), insert:
(d)
it has assessed, on reasonable grounds, the circumstances as low risk for money laundering and the financing of terrorism in, or based on, its risk assessment undertaken under section 58.
(2)
After section 18(2)(p)(ii), insert:
(pa)
any other reporting entity—
(i)
that is required to prepare an annual report under section 208(1)(a) to (c) of the Companies Act 1993; or
(ii)
that is an FMC reporting entity within the meaning of section 451 of the Financial Markets Conduct Act 2013:
12 Section 19 replaced (Simplified due diligence: identity requirements)
Replace section 19 with:
19 Simplified customer due diligence: identity requirements
(1)
When conducting simplified customer due diligence under section 18(1)(a) to (c) or (3), a reporting entity must obtain the following identity information in relation to a person acting on behalf of the customer:
(a)
information relating to the identity of the person; and
(b)
the person’s relationship with the customer; and
(c)
any information prescribed by regulations.
(2)
When conducting simplified customer due diligence under section 18(1)(d), a reporting entity must obtain identity information as is necessary for the circumstances identified as low risk for money laundering or the financing of terrorism in its risk assessment undertaken under section 58.
13 Section 20 replaced (Simplified customer due diligence: verification of identity requirements)
Replace section 20 with:
20 Simplified customer due diligence: verification of identity requirements
(1)
When conducting simplified customer due diligence under section 18(1)(a) to (c) or (3), a reporting entity must, according to the level of risk involved, take reasonable steps to verify the information obtained under section 19(1) so that it is satisfied that it knows who the person is and that the person has the authority to act on behalf of the customer.
(2)
When conducting simplified customer due diligence under section 18(1)(d), a reporting entity must, according to the level of risk involved, take reasonable steps to verify the information obtained under section 19(2) as is necessary for the circumstances assessed as low risk under section 18(1)(d).
(3)
Except as provided in subsection (4), verification of identity in relation to section 18(1)(a) to (c) and (3) must be carried out before the business relationship is established or the occasional transaction or activity is conducted or the person acts on behalf of the customer.
(4)
Verification of identity may be completed after a business 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 or (if the reporting entity is not a financial institution) through other appropriate risk management procedures; and
(c)
verification of identity is completed as soon as practicable once the business relationship has been established or the occasional transaction or activity has been conducted or the person has acted on behalf of the customer.
(5)
For the purpose 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.
14 Section 21 repealed (Simplified customer due diligence: other requirements)
Repeal section 21.
15 Section 22 amended (Circumstances when enhanced customer due diligence applies)
(1)
Repeal section 22(1)(a)(i).
(2)
In section 22(1)(a)(ii), replace “that has insufficient anti-money laundering and countering financing of terrorism systems or measures in place”
with “identified by the Financial Action Task Force as being a high-risk jurisdiction subject to a call for action”
.
(3)
Repeal section 22(1)(b)(i).
(4)
In section 22(1)(b)(ii), replace “that has insufficient anti-money laundering and countering financing of terrorism systems or measures in place”
with “identified by the Financial Action Task Force as being a high-risk jurisdiction subject to a call for action”
.
(5)
In section 22(1)(e), delete “section 22A or”
.
(6)
After section 22(5), insert:
(5A)
Despite subsection (1)(c) and (d), a reporting entity is not required to conduct or complete enhanced customer due diligence if—
(a)
the reporting entity has determined that it is required to report to the Commissioner under section 40; and
(b)
the reporting entity has reasonable grounds to suspect that conducting or completing enhanced customer due diligence on the person would alert the person that the activity has been determined to be a suspicious activity within the meaning of section 39A.
16 Section 22A repealed (Enhanced customer due diligence required for certain activities requiring suspicious activities report)
Repeal section 22A.
17 Section 23 amended (Enhanced customer due diligence: identity requirements)
(1)
Replace section 23(1) with:
A reporting entity must, in relation to a person referred to in section 11(1), obtain the information required under section 15 and any information as is necessary to mitigate the risk of money laundering and financing of terrorism, having regard to its risk assessment undertaken under section 58.
(2)
Repeal section 23(2).
18 Section 24 amended (Enhanced customer due diligence: verification of identity requirements)
(1)
Replace section 24(1)(b) with:
(b)
according to the level of risk involved, take reasonable steps to verify the information obtained under section 23(1); and
(2)
Repeal section 24(4).
19 Section 29 amended (Correspondent banking relationships)
(1)
In section 29(2)(b), replace “money laundering or financing of terrorism”
with “money laundering, financing of terrorism, or non-compliance with specified sanctions”
.
(2)
In section 29(2)(c), replace “anti-money laundering and countering financing of terrorism”
with “AML/CFT”
.
20 Section 30 amended (New or developing technologies, or products, that might favour anonymity)
In section 30(a), replace “in the commission of a money laundering offence or for the financing of terrorism”
with “in the commission of a money laundering offence, for the financing of terrorism, or for non-compliance with specified sanctions”
.
21 Section 31 amended (Ongoing customer due diligence and account monitoring)
(1)
Replace section 31(4)(a) with:
(a)
in the case of a customer in circumstances assessed as low risk under section 18(1)(d), review the customer’s account activity and transaction behaviour as is necessary to be satisfied that the risk remains low; and
(aa)
in the case of any other customer, regularly review the customer’s account activity and transaction behaviour; and
(2)
In section 31(4)(b), delete “19, 21,”
.
22 New sections 31A to 31D and cross-headings inserted
After section 31, insert:
Mandatory reporting groups
31A Mandatory reporting groups
(1)
This section applies to a group of 2 or more persons in which each member of the group is related to each other member of the group within the meaning of subsection (4) and is—
(a)
a reporting entity in New Zealand; or
(b)
a person that is resident in any other country and that is supervised or regulated for AML/CFT purposes.
(2)
The group of 2 or more persons is a mandatory reporting group.
(3)
No member of the mandatory reporting group may be a member of another mandatory reporting group or a voluntary reporting group.
(4)
For the purposes of this section, a reporting entity (A) is related to another reporting entity or the equivalent body in another country regulated for AML/CFT purposes (B) if—
(a)
B is A’s holding company or subsidiary within the meaning of section 5 of the Companies Act 1993; or
(b)
more than half of A’s voting products (other than voting products that carry no right to participate beyond a specified amount in a distribution of either profits or capital) are held by B and bodies corporate that are related to B (whether directly or indirectly, but other than in a fiduciary capacity), or vice versa; or
(c)
more than half of the voting products (other than voting products that carry no right to participate beyond a specified amount in a distribution of either profits or capital) of each of A and B are held by members of the other (whether directly or indirectly, but other than in a fiduciary capacity); or
(d)
the businesses of A and B have been so carried on that the separate business of each body corporate, or a substantial part of that business, is not readily identifiable; or
(e)
there is another body corporate to which A and B are both related; or
(f)
A controls B, or vice versa; or
(g)
A and B are both controlled by a third person; or
(h)
A and B are a partnership.
(5)
For the purposes of subsection (4), a person controls another person if the first person has the capacity to determine the outcome of decisions about the other person’s financial and operating policies.
31B Lead entity of mandatory reporting group
(1)
A mandatory reporting group must assign a lead entity that is—
(a)
a member of the mandatory reporting group; and
(b)
located in a country that has sufficient AML/CFT systems.
(2)
The lead entity of a mandatory reporting group is responsible for—
(a)
oversight of the group-wide AML/CFT programme required by section 56A:
(b)
ensuring that the group-wide AML/CFT programme is up to date:
(c)
annual reporting on the group-wide AML/CFT programme in accordance with section 60.
(3)
The lead entity of a mandatory reporting group must, as soon as practicable after it is assigned, inform the AML/CFT supervisor—
(a)
that it is the lead entity; and
(b)
of the contact details for a contact person for the mandatory reporting group (the contact person); and
(c)
of the contact details for each member of the mandatory reporting group.
(4)
The contact person for a mandatory reporting group must notify the AML/CFT supervisor, in writing within 30 days, of any of the following:
(a)
the withdrawal of a member from the mandatory reporting group:
(b)
the termination of the mandatory reporting group:
(c)
any updates to a group-wide compliance programme to reflect any changes to the mandatory reporting group:
(d)
any other change in the details previously notified to the AML/CFT supervisor in respect of the mandatory reporting group.
Voluntary reporting groups
31C Who may form voluntary reporting group
(1)
This section applies to any group of 2 or more persons listed in paragraphs (a) to (g) of the definition of voluntary reporting group in section 5(1).
(2)
The group of 2 or more persons may form a voluntary reporting group if—
(a)
each member of the group has elected, in writing, to be a member of the group and the election is in force; and
(b)
each election was made in accordance with regulations (if any).
(3)
No member of the voluntary reporting group may be a member of another voluntary reporting group or a mandatory reporting group.
31D Lead entity for voluntary reporting group
(1)
A voluntary reporting group must assign a lead entity that is a member of the voluntary reporting group.
(2)
The lead entity of a voluntary reporting group is responsible for oversight of any of the following that is shared between 2 or more members of the voluntary reporting group:
(a)
an AML/CFT programme relating to record-keeping, account monitoring, ongoing customer due diligence, and annual reporting:
(b)
a risk assessment undertaken in accordance with section 58:
(c)
the submission of suspicious activity or prescribed transaction reports by any member of the voluntary reporting group.
(3)
The lead entity of a voluntary reporting group must, as soon as practicable after it is assigned, inform the AML/CFT supervisor—
(a)
that it is the lead entity; and
(b)
of the contact details for a contact person for the voluntary reporting group (the contact person); and
(c)
of the contact details for each member of the voluntary reporting group.
(4)
The contact person for a voluntary reporting group must notify the AML/CFT supervisor, in writing within 30 days, of any of the following:
(a)
the withdrawal of a member from the voluntary reporting group:
(b)
the termination of the voluntary reporting group:
(c)
any updates to a group-wide compliance programme to reflect any changes to the voluntary reporting group:
(d)
any other change in the details previously notified to the AML/CFT supervisor in respect of the voluntary reporting group.
23 New section 32AA inserted (Reliance on member of mandatory reporting group)
Before section 32, insert:
32AA Reliance on member of mandatory reporting group
(1)
A reporting entity (member A) that is a member of a mandatory reporting group may—
(a)
rely on another member of the group (member B) to conduct any customer due diligence required under this Act or rules made under section 156B as long as—
(i)
member B gives any identity information to member A before member A establishes a business relationship or an occasional transaction or activity is conducted; and
(ii)
member B gives any verification information to member A as soon as practicable, but within 5 working days, on request by the reporting entity after the business relationship is established or the occasional transaction or activity is conducted:
(b)
share identity or verification information for the purpose of managing money laundering and terrorism financing risks within the group:
(c)
adopt or share any parts of a risk assessment or AML/CFT programme of another member of the group subject to any conditions prescribed by rules made under section 156B:
(d)
make a suspicious activity report, prescribed transaction report, or an annual report, on behalf of any or all members of the mandatory reporting group.
(2)
Despite subsection (1), the reporting entity, and not the member of the mandatory reporting group relied on by the reporting entity, is responsible for ensuring that it is complying with this Act, rules, and regulations.
24 Section 32 amended (Reliance on member of designated business group)
(1)
In the heading to section 32, replace “designated business group”
with “voluntary reporting group”
.
(2)
In section 32(1), replace “designated business group”
with “voluntary reporting group”
.
(3)
In section 32(1)(d), replace “designated business group”
with “voluntary reporting group”
.
(4)
In section 32(1A), replace “designated business group”
with “voluntary reporting group”
.
(5)
In section 32(2), replace “designated business group”
with “voluntary reporting group”
.
(6)
In section 32(3), replace “designated business group”
with “voluntary reporting group”
.
25 Section 33 amended (Reliance on other reporting entities of persons in another country)
(1)
In section 33(2)(a)(ii), replace “anti-money laundering and countering financing of terrorism”
with “AML/CFT”
.
(2)
Repeal section 33(3A).
26 Section 36 amended (Protection of personal information and designated business groups)
(1)
In the heading to section 36, replace “information and designated business groups”
with “information: mandatory reporting groups and voluntary reporting groups”
.
(2)
In section 36(2), replace “designated business group”
with “mandatory reporting group or a voluntary reporting group”
.
(3)
In section 36(3), replace “the designated business group”
with “a mandatory reporting group or a voluntary reporting group”
.
(4)
In section 36(4), replace “designated business group”
with “mandatory reporting group or voluntary reporting group”
.
(5)
In section 36(5), after “reporting entity”
, insert “that is a member of a voluntary reporting group formed under section 31B”
.
(6)
In section 36(5)(b), replace “designated business group”
with “voluntary reporting group”
.
27 Section 38 amended (Prohibition on false customer names and customer anonymity)
In section 38(2)(b), after “law enforcement”
, insert “or intelligence”
.
28 Section 39A amended (Interpretation)
In section 39A, definition of suspicious activity, after paragraph (b), insert:
(c)
in which—
(i)
the reporting entity has reasonable grounds to suspect that the transaction or proposed transaction, the service or proposed service, or the inquiry is or may be relevant to—
(A)
the investigation or prosecution of any person for a money laundering offence; or
(B)
the enforcement of a specified sanction; or
(C)
the enforcement of the Misuse of Drugs Act 1975; or
(D)
the enforcement of the Terrorism Suppression Act 2002; or
(E)
the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 2009; or
(F)
the investigation or prosecution of an offence (within the meaning of section 243(1) of the Crimes Act 1961); or
(ii)
the reporting entity has implemented a specified sanction against a person.
29 Section 43 amended (Auditors may report suspicious activities)
After section 43(1)(a), insert:
(aa)
the enforcement of a specified sanction; or
30 Section 46 amended (Disclosure of information relating to suspicious activity reports)
(1)
After section 46(2)(a), insert:
(aa)
a New Zealand Security Intelligence Service employee who is authorised by the Director-General of the New Zealand Security Intelligence Service to receive the information; or
(ab)
a Government Communications Security Bureau employee who is authorised by the Director-General of the Government Communications Security Bureau to receive the information; or
(2)
After section 46(2)(d), insert:
(da)
another member of a mandatory reporting group formed under section 31A of which the reporting entity is a member; or
(3)
In section 46(2)(e), replace “designated business group”
with “voluntary reporting group formed under section 31C”
.
(4)
In section 46(3),—
(a)
after “Police”
, insert “, New Zealand Security Intelligence Service, or Government Communications Security Bureau”
; and
(b)
after “law enforcement”
, insert “or intelligence”
.
(5)
In section 46(4),—
(a)
after “Police”
, insert “, the New Zealand Security Intelligence Service, or the Government Communications Security Bureau”
; and
(b)
after “law enforcement”
, insert “or intelligence”
.
(6)
In section 46(8),—
(a)
after “law enforcement”
, insert “or intelligence”
; and
(b)
after “Police”
, insert “, the New Zealand Security Intelligence Service, or the Government Communications Security Bureau”
.
31 Section 48 amended (Disclosure of personal information relating to employees or senior managers)
(1)
In section 48, after “another government agency”
, insert “or any regulator”
.
(2)
In section 48(a), after “law enforcement”
, insert “or intelligence”
.
(3)
After section 48(b), insert:
(c)
the performance by the agency of its regulatory functions.
32 Section 51 amended (Obligation to keep other records)
(1)
In section 51(1)(b), replace “audits”
with “independent evaluations”
.
(2)
In section 51(2), replace “audits”
with “independent evaluations”
.
(3)
In section 51(3), replace “audits”
with “independent evaluations”
.
33 Section 56 amended (Reporting entity must have AML/CFT programme and AML/CFT compliance officer)
(1)
In section 56(1)(a), replace “detect money laundering and the financing of terrorism”
with “detect money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
(2)
In section 56(1)(b), replace “manage and mitigate the risk of money laundering and financing of terrorism”
with “manage and mitigate the risk of money laundering, financing of terrorism, and non-compliance with specified sanctions”
.
34 New section 56A inserted (Mandatory reporting group must have group AML/CFT programme)
After section 56, insert:
56A Mandatory reporting group must have group AML/CFT programme
A mandatory reporting group must establish, implement, and maintain a group compliance programme (a group AML/CFT programme) that includes procedures, policies, and controls for—
(a)
managing and mitigating any risks of money laundering and the financing of terrorism at a group level:
(b)
sharing identity and verification information in accordance with section 32AA(1)(a) or (b):
(c)
sharing a customer’s identity or verification information, account activity, or transaction behaviour with another member of the mandatory reporting group as is necessary for the purposes of the Act:
(d)
monitoring and managing the confidentiality and protection of personal information.
35 Section 57 amended (Minimum requirements for AML/CFT programmes)
(1)
In section 57(1)(f), replace “money laundering and the financing of terrorism”
with “money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
(2)
In section 57(1)(g)(iii), replace “money laundering or the financing of terrorism”
with “money laundering, the financing of terrorism, or non-compliance with specified sanctions”
.
(3)
In section 57(1)(h), replace “that do not have or have insufficient anti-money laundering or countering financing of terrorism systems in place”
with “identified by the Financial Action Task Force as being a high-risk jurisdiction subject to a call for action”
.
(4)
In section 57(1)(i), replace “money laundering or the financing of terrorism”
with “money laundering, the financing of terrorism, or non-compliance with specified sanctions”
.
36 Section 58 amended (Risk assessment)
(1)
In section 58(1), replace “the risk of money laundering and the financing of terrorism”
with “the risk of money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
(2)
After section 58(3), insert:
(4)
The risk assessment may set out the circumstances that may be identified as low risk for money laundering or the financing of terrorism, and in which simplified customer due diligence may be applied under section 18(1)(d).
37 Section 59 amended (Review and audit of risk assessment and AML/CFT programmes)
(1)
In the heading to section 59, replace “audit”
with “independent evaluation”
.
(2)
In section 59(2), replace “audited”
with “independently evaluated”
.
(3)
After section 59(2), insert:
(3)
However, the requirement in subsection (2) does not extend to any part of a risk assessment or AML/CFT programme that relates to specified sanctions.
38 Section 59A amended (Audit of compliance with AML/CFT obligations)
(1)
In the heading to section 59A, replace “Audit”
with “Independent evaluation”
.
(2)
In section 59A, replace “audited”
with “independently evaluated”
.
(3)
In section 59A, insert as subsection (2):
(2)
However, the requirement in subsection (1) does not extend to any AML/CFT obligations that relate to specified sanctions.
39 Section 59B replaced (Who carries out audit)
Replace section 59B with:
59B Who carries out independent evaluation
(1)
An independent evaluation under section 59 or 59A must be carried out by an independent person, appointed by the reporting entity, who is appropriately qualified to conduct it.
(2)
A person appointed to conduct an independent evaluation is not required to be—
(a)
a chartered accountant within the meaning of section 19 of the New Zealand Institute of Chartered Accountants Act 1996; or
(b)
qualified to undertake financial audits.
(3)
A person appointed to conduct an independent evaluation must not have been involved in—
(a)
the establishment, implementation, or maintenance of the reporting entity’s AML/CFT programme (if any); or
(b)
the undertaking of the reporting entity’s risk assessment (if any).
(4)
The independent evaluation of a risk assessment under section 59 is limited to an independent evaluation of whether the reporting entity’s risk assessment fulfils the requirements in section 58(3).
(5)
A reporting entity must, on the request of the AML/CFT supervisor, provide a copy of any independent evaluation to the AML/CFT supervisor.
40 Section 60 amended (Annual AML/CFT report)
In section 60(2)(b), replace “audit”
with “independent evaluation”
.
41 Section 61 amended (Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements)
In section 61(2)(b), replace “money laundering offence and the financing of terrorism”
with “money laundering offence, the financing of terrorism, and non-compliance with specified sanctions”
.
42 New sections 67AB and 67AC inserted
After section 67A, insert:
67AB Restrictions on buying and selling virtual assets by way of cash transactions
A person who is in trade must not buy or sell a virtual asset by way of a cash transaction or a series of related cash transactions, if—
(a)
the total value of the transaction or transactions is equal to or above the applicable threshold value; or
(b)
the transaction or transactions cause the total value of prescribed transactions during a prescribed period to be equal to or above the applicable threshold value; or
(c)
the virtual asset is prescribed as a restricted virtual asset; or
(d)
the buying or selling of virtual assets by way of cash transactions is prohibited by regulations.
67AC Restrictions on certain international money or value transfer service transactions
(1)
A money or value transfer service must not accept a cash transaction, or a series of related cash transactions, if—
(a)
the total value of the transaction or transactions is equal to or above the applicable threshold value; and
(b)
the purpose of the transaction or transactions is to transfer money or value to a person outside of New Zealand.
(2)
A money or value transfer service must not accept a cash transaction if—
(a)
regulations made under section 153(1)(da) prohibit a cash transaction being used for the transfer of money or value to a class of persons; and
(b)
the purpose of the transaction is to transfer money or value to a person within that class.
43 Section 74 amended (One penalty only rule)
(1)
In section 74(1), after “substantially the same”
, insert “instance of that”
.
(2)
In section 74(2), after “substantially the same”
, insert “instance of that”
in each place.
44 Section 78 amended (Meaning of civil liability act)
(1)
In section 78, after “fails to”
, insert “adequately”
.
(2)
In section 78(b), delete “adequately”
.
(3)
In section 78(h), after “section 67A”
, insert “, 67AB, or 67AC”
.
45 Section 79 amended (Possible responses to civil liability act)
After section 79(a), insert:
(aa)
refer the allegation to any licensing body relevant to the reporting entity:
46 Section 90 amended (Pecuniary penalties for civil liability act)
Replace section 90(2) and (3) with:
(2)
For a civil liability act specified in section 78, the maximum amount of a pecuniary penalty under this Act is,—
(a)
in the case of an individual, the greater of the following:
(i)
$500,000:
(ii)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any gain resulting from the contravention; or
(b)
in any other case, the greater of the following:
(i)
$5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the contravention; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the person and all of its interconnected bodies corporate (if any) in each accounting period in which the contravention occurred.
47 Section 91 amended (Offences and penalties for civil liability act)
In section 91, insert as subsection (2):
(2)
A reporting entity who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 4 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the person and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
48 Section 92 amended (Failing to report suspicious activity)
(1)
After section 92(1)(b)(i), insert:
(ia)
relevant to the enforcement of a specified sanction; or
(2)
After section 92(1), insert:
(1A)
A reporting entity who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 4 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the reporting entity and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
49 Section 93 amended (Providing false or misleading information in connection with suspicious activity reports or prescribed transaction reports)
In section 93, insert as subsection (2):
(2)
A reporting entity who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 4 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the reporting entity and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
50 Section 94 amended (Unlawful disclosure of suspicious activity reports or prescribed transaction reports)
(1)
After section 94(1)(b)(ii), insert:
(iii)
non-compliance with specified sanctions or the possible non-compliance with specified sanctions.
(2)
After section 94(2)(d)(ii)(B), insert:
(C)
non-compliance with specified sanctions or the possible non-compliance with specified sanctions.
(3)
After section 94(2), insert:
(3)
A person who commits an offence under subsection (1) or (2) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 4 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the person and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
51 Section 95 amended (Failure to keep or retain adequate records relating to suspicious activities or prescribed transactions)
In section 95, insert as subsection (2):
(2)
A reporting entity who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 2 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the reporting entity and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
52 Section 96 amended (Obstruction of investigation relating to suspicious activity reports or prescribed transaction reports)
After section 96(1), insert:
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 4 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the person and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
53 Section 97 amended (Contravention of section 47(1) or 48A(1))
In section 97, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 2 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $5,000,000:
(ii)
either,—
(A)
if it can be readily ascertained and if the court is satisfied that the offence occurred in the course of producing a commercial gain, 3 times the value of any commercial gain resulting from the offence; or
(B)
if the commercial gain cannot be readily ascertained, 10% of the turnover of the person and all of its interconnected bodies corporate (if any) in each accounting period in which the offence occurred.
54 Section 99 amended (Time limit for prosecution of offences relating to civil liability act and suspicious activity reports or prescribed transaction reports)
In section 99, replace “3 years”
with “5 years”
.
55 Section 100 repealed (Penalties)
Repeal section 100.
56 Section 101 amended (Structuring transaction to avoid application of AML/CFT requirements)
After section 101(1), insert:
(1A)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 5 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, a fine of up to $5,000,000.
57 New section 101A inserted (Structuring legal arrangements or legal person to avoid application of AML/CFT requirements)
After section 101, insert:
101A Structuring legal arrangements or legal person to avoid application of AML/CFT requirements
(1)
A person commits an offence if the person structures a legal person or legal arrangement to avoid the application of any AML/CFT requirements.
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 5 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, a fine of up to $5,000,000.
(3)
For the purposes of this section, legal person or legal arrangement includes, but is not limited to, a company, incorporated society, partnership, or trust.
58 Section 102 amended (Offence to obstruct AML/CFT supervisor)
In section 102, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 12 months:
(ii)
a fine of up to $100,000; and
(b)
in any other case, a fine of up to $1,000,000.
59 Section 103 amended (Offence to provide false or misleading information to AML/CFT supervisor)
In section 103, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 12 months:
(ii)
a fine of up to $100,000; and
(b)
in any other case, a fine of up to $1,000,000.
60 New sections 103A and 103B inserted
After section 103, insert:
103A Offence to obstruct Commissioner
(1)
A person commits an offence if the person wilfully obstructs the Commissioner in the exercise of any power conferred on, or the performance of any function imposed on, the Commissioner by this Act or regulations.
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 12 months:
(ii)
a fine of up to $100,000; and
(b)
in any other case, a fine of up to $1,000,000.
103B Offence to provide false or misleading information to Commissioner
(1)
A person commits an offence if, without reasonable excuse, the person provides information to the Commissioner knowing that information to be false or misleading in any material respect.
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 12 months:
(ii)
a fine of up to $100,000; and
(b)
in any other case, a fine of up to $1,000,000.
61 Section 104 amended (Time limit for prosecution of offences relating to non-compliance with AML/CFT requirements)
(1)
In section 104, after “103,”
, insert “103A, 103B,”
.
(2)
In section 104, replace “3 years”
with “5 years”
.
62 Section 105 repealed (Penalties)
Repeal section 105.
63 Section 105A amended (Contravention of section 67A)
(1)
In section 105A(2)(a)(ii), replace “$300,000”
with “$500,000”
.
(2)
Replace section 105A(2)(b) with:
(b)
in any other case, a fine of up to $5,000,000.
64 New section 105B inserted (Contravention of section 67AB or 67AC)
After section 105A, insert:
105B Contravention of section 67AB or 67AC
(1)
A person commits an offence if the person knowingly or recklessly contravenes section 67AB or 67AC.
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 2 years:
(ii)
a fine of up to $500,000; and
(b)
in any other case, a fine of up to $5,000,000.
(3)
A person commits an offence if the person otherwise than knowingly or recklessly contravenes section 67AB or 67AC.
(4)
A person who commits an offence under subsection (3) is liable on conviction to,—
(a)
in the case of an individual, a fine of up to $500,000; and
(b)
in any other case, a fine of up to $5,000,000.
65 Section 106 amended (Failure to report cash equal to or above applicable threshold value moved into or out of New Zealand)
In section 106, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 3 months:
(ii)
the greater of the following:
(A)
a fine of up to $20,000:
(B)
3 times the value of the cash to which the offence relates; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $100,000:
(ii)
3 times the value of the cash to which the offence relates.
66 Section 107 amended (Failure to report cash equal to or above applicable threshold value received by person in New Zealand from overseas)
In section 107, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 3 months:
(ii)
the greater of the following:
(A)
a fine of up to $20,000:
(B)
3 times the value of the cash to which the offence relates; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $100,000:
(ii)
3 times the value of the cash to which the offence relates.
67 Section 108 amended (Structuring cross-border transportation to avoid application of AML/CFT requirements)
In section 108, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 6 months:
(ii)
the greater of the following:
(A)
a fine of up to $20,000:
(B)
3 times the value of the cash to which the offence relates; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $100,000:
(ii)
3 times the value of the cash to which the offence relates.
68 Section 110 amended (Providing false or misleading information in connection with cash report)
In section 110, insert as subsection (2):
(2)
A person who commits an offence under subsection (1) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 3 months:
(ii)
the greater of the following:
(A)
a fine of up to $20,000:
(B)
3 times the value of the cash to which the offence relates; and
(b)
in any other case, the greater of the following:
(i)
a fine of up to $100,000:
(ii)
3 times the value of the cash to which the offence relates.
69 Section 111 amended (Offence to obstruct or not to answer questions from Customs officer)
(1)
In the heading to section 111, replace “not to answer”
with “fail to answer”
.
(2)
After section 111(2), insert:
(3)
A person who commits an offence under subsection (1) or (2) is liable on conviction to,—
(a)
in the case of an individual, either or both of the following:
(i)
a term of imprisonment of not more than 3 months:
(ii)
a fine of up to $20,000; and
(b)
in any other case, a fine of up to $100,000.
70 Section 112 repealed (Penalties)
Repeal section 112.
71 New subpart 3A of Part 3 inserted
After section 115, insert:
Subpart 3A—Infringement offences
115A Infringement offences
(1)
A person who is alleged to have committed an infringement offence may—
(a)
be proceeded against by the filing of a charging document under section 14 of the Criminal Procedure Act 2011; or
(b)
be issued with an infringement notice under section 115C.
(2)
Proceedings commenced as described in subsection (1)(a) do not require the leave of a District Court Judge or Registrar under section 21(1)(a) of the Summary Proceedings Act 1957.
(3)
See section 21 of the Summary Proceedings Act 1957 for the procedure that applies if an infringement notice is issued.
115B When infringement notice may be issued
An enforcement officer may issue an infringement notice to a person if the enforcement officer believes, on reasonable grounds, that the person is committing, or has committed, an infringement offence.
115C Revocation of infringement notice before payment made
(1)
The enforcement officer may revoke an infringement notice before—
(a)
the infringement fee is paid; or
(b)
an order for payment of a fine is made or deemed to be made by a court under section 21 of the Summary Proceedings Act 1957.
(2)
The enforcement officer must take reasonable steps to ensure that the person to whom the notice was issued is made aware of the revocation of the notice.
(3)
The revocation of an infringement notice before the infringement fee is paid is not a bar to any further action, as described in section 115A(1)(a) or (b), against the person to whom the notice was issued in respect of the same matter.
115D What infringement notice must contain
An infringement notice must be in the form prescribed in the regulations and must contain the following particulars:
(a)
details of the alleged infringement offence that fairly inform a person of the time, place, and nature of the alleged offence:
(b)
the amount of the infringement fee:
(c)
the address of the AML/CFT supervisor:
(d)
how the infringement fee may be paid:
(e)
the time within which the infringement fee must be paid:
(f)
a summary of the provisions of section 21(10) of the Summary Proceedings Act 1957:
(g)
a statement that the person served with the notice has a right to request a hearing:
(h)
a statement of what will happen if the person served with the notice neither pays the infringement fee nor requests a hearing:
(i)
any other matters prescribed in the regulations.
115E How infringement notice may be served
(1)
An infringement notice may be served on the person who the enforcement officer believes is committing or has committed the infringement offence by—
(a)
delivering it to the person or, if the person refuses to accept it, bringing it to the person’s notice; or
(b)
leaving it for the person at the person’s last known place of residence with another person who appears to be of or over the age of 14 years; or
(c)
leaving it for the person at the person’s place of business or work with another person; or
(d)
sending it to the person by prepaid post addressed to the person’s last known place of residence or place of business or work; or
(e)
sending it to an electronic address of the person in any case where the person does not have a known place of residence or business in New Zealand.
(2)
Unless the contrary is shown,—
(a)
an infringement notice (or a copy of it) sent by prepaid post to a person under subsection (1) is to be treated as having been served on that person on the fifth working day after the date on which it was posted; and
(b)
an infringement notice sent to a valid electronic address is to be treated as having been served at the time the electronic communication first entered an information system that is outside the control of the enforcement officer.
115F Payment of infringement fees
All infringement fees paid for infringement offences must be paid into a Crown bank account.
115G Reminder notices
A reminder notice must be in the form prescribed in the regulations and must include the same particulars, or substantially the same particulars, as the infringement notice.
115H Conduct that is infringement offence
(1)
A reporting entity commits an infringement offence if the reporting entity fails to do any of the following:
(a)
notify the AML/CFT supervisor within 30 days of the formation of a mandatory reporting group under section 31A of the information required by section 31B(3):
(b)
notify the AML/CFT supervisor within 30 days of the formation of a voluntary reporting group under section 31C of the information required by section 31D(3):
(c)
notify the AML/CFT supervisor, within 30 days and in writing, of the information required by section 31B(4) or 31D(4), as applicable:
(d)
designate an appointed AML/CFT compliance officer as required by section 56:
(e)
undertake a risk assessment in writing as required by section 58 before conducting customer due diligence or establishing an AML/CFT programme:
(f)
provide a copy of an audit of a risk assessment or AML/CFT programme when required under section 59B(5):
(g)
provide an annual report at the time appointed by the AML/CFT supervisor as required by section 60:
(h)
produce records relating to a transaction required to be kept by section 49(1) when required to do so by notice given under section 132(2)(a):
(i)
produce identity and verification records required to be kept by section 50(3) when required to do so by notice given under section 132(2)(a):
(j)
produce records relating to a business relationship required to be kept by section 51(a) or (c) when required to do so by notice given under section 132(2)(a):
(k)
provide a copy of an audit of a risk assessment or AML/CFT programme when required to so by notice given under section 132(2)(a):
(l)
provide information that the AML/CFT supervisor reasonably requires for the purposes of an on-site inspection conducted under section 133(2).
(2)
A reporting entity other than a high-value dealer commits an infringement offence if the reporting entity fails to have an AML/CFT programme in writing as required by sections 56 and 57(1).
(3)
A reporting entity that commits an infringement offence is liable to—
(a)
an infringement fee prescribed in regulations made under section 153(1)(dc)(i); or
(b)
a fine prescribed in regulations made under section 153(1)(dc)(ii).
72 Section 116 amended (Definitions)
In section 116, repeal the definition of enforcement officer.
73 Section 117 amended (Search warrant)
(1)
In section 117(1), after “place”
, insert “, vehicle, or other thing”
.
(2)
In section 117(3),—
(a)
delete “(within the meaning of section 3 of the Search and Surveillance Act 2012)”
; and
(b)
after “place”
, insert “, vehicle, or other thing”
in each place.
74 Section 118 amended (Powers under search warrant)
(1)
In section 118(1)(c), after “place”
, insert “or in the vehicle or other thing”
.
(2)
In section 118(1)(f), after “place”
, insert “or vehicles”
.
75 New sections 129A to 129O and cross-headings inserted
After section 129, insert:
Ongoing production orders
129A When Commissioner may apply for ongoing production order
(1)
The Commissioner may apply to an issuing officer for an ongoing production order in relation to specified financial records held by a reporting entity—
(a)
relating to a person; and
(b)
that are relevant to analysing information received by the Commissioner under this Act.
(2)
An application under this section must be in writing and must set out the following particulars:
(a)
the name of the applicant:
(b)
that the application is being made under this section:
(c)
the name of the reporting entity against whom the ongoing production order is sought:
(d)
the name of the person to whom the specified financial records relate:
(e)
a description of the specified financial records for which production is sought:
(f)
the period for which the order is sought:
(g)
the facts relied on to show reasonable grounds to believe that the specified financial records are relevant to analysing information received by the Commissioner under this Act:
(h)
the facts relied on to show reasonable grounds to believe that the specified financial records—
(i)
are in the possession or under the control of the reporting entity against whom the order is sought; or
(ii)
will come into that reporting entity’s possession or under that reporting entity’s control while the order is in force (if made and in force for the period sought).
129B Issuing officer may make ongoing production order
(1)
An issuing officer may make an ongoing production order against a reporting entity in relation to a person if satisfied, on an application made under section 129A, that—
(a)
the specified financial records are relevant to analysing information received by the Commissioner under this Act; and
(b)
the specified financial records—
(i)
are in the possession or under the control of the reporting entity against whom the order is sought; or
(ii)
will come into that reporting entity’s possession or under that reporting entity’s control while the order is in force (if made and in force for the period sought).
(2)
An ongoing production order may require a reporting entity to produce, on an ongoing basis,—
(a)
those specified financial records for which production is sought that are in the reporting entity’s possession or under the reporting entity’s control at the time the order is made; and
(b)
those specified financial records for which production is sought and that come into the reporting entity’s possession or under the reporting entity’s control at any time while the order is in force.
129C Content of ongoing production order
(1)
An ongoing production order must require the reporting entity against whom it is made—
(a)
to give to the Commissioner, or a person identified in the order,—
(i)
any specified financial records described in the order that are in the possession or under the control of the reporting entity; and
(ii)
any specified financial records described in the order that come into the possession or under the control of the reporting entity while the order is in force; and
(b)
if any documents described in the order are not, or are no longer, in the possession or under the control of the reporting entity, to disclose, to the best of the reporting entity’s knowledge or belief, the location of those documents to the enforcement officer who applied for the order or to the person identified in the order.
(2)
The ongoing production order must set out the following:
(a)
the name of the reporting entity:
(b)
the grounds on which the order is made:
(c)
the name of the person to whom the specified financial records relate:
(d)
the specified financial records required to be given:
(e)
the duration of the order:
(f)
the time by which, and the way in which, the specified financial records must be produced.
(3)
The ongoing production order may describe the specified financial records required to be given by reference to a class or category of specified financial records.
(4)
The ongoing production order may specify an individual (whether by name or by reference to a position held in the reporting entity) who is to comply with the order as the reporting entity’s representative.
Temporary freezing orders
129D When Commissioner may apply for temporary freezing order
(1)
The Commissioner may apply to an issuing officer, in accordance with section 129E, for a temporary freezing order in relation to a transaction or facility, or a class of transactions or facilities, held by or associated with a specified person if—
(a)
the Commissioner has reasonable grounds to suspect that—
(i)
the transaction or facility, or class of transactions or facilities, is relevant to law enforcement or intelligence purposes; and
(ii)
an offence has been, is being, or will be committed; or
(b)
an international authority authorised to perform functions broadly equivalent to the Commissioner’s financial intelligence functions requests that the transaction or facility, or class of transactions or facilities, be frozen.
(2)
An application for a temporary freezing order must contain the following:
(a)
the name of the applicant:
(b)
an indication that the application is being made under this section:
(c)
the name of the specified person against whom the temporary freezing order is sought:
(d)
the name of each of the reporting entities that will be required to comply with the temporary freezing order if it is made:
(e)
details of—
(i)
the transaction or class of transactions that are to be frozen in respect of the specified person; and
(ii)
the facility or class of facilities that are to be frozen in respect of the specified person:
(f)
the period for which the order is sought (which must be no longer than 7 days):
(g)
the basis on which the Commissioner considers it necessary to avoid alerting the specified person to the Commissioner’s interest in them (if relevant):
(h)
either—
(i)
details of the evidential basis upon which the Commissioner has relied when forming the reasonable grounds to suspect that the transaction or facility, or class of transactions or facilities, is relevant to law enforcement or intelligence purposes and that an offence has been, is being, or will be committed; or
(ii)
evidence that an international authority authorised to perform functions broadly equivalent to the Commissioner’s financial intelligence functions has requested that the transaction or facility, or class of transactions or facilities, be frozen.
129E Temporary freezing order
(1)
An issuing officer may make a temporary freezing order in accordance with this section.
(2)
A temporary freezing order may restrain a specified person named in the order from—
(a)
carrying out a transaction or a class of transactions; or
(b)
using a facility or a class of facilities.
(3)
A temporary freezing order may be issued for a period of up to 7 days from the date of the order.
(4)
The temporary freezing order must provide for the following to be met for the specified person:
(a)
the reasonable living costs of the specified person and any of their dependants:
(b)
the reasonable business expenses of the specified person:
(c)
the payment of any specified debt incurred by the specified person in good faith:
(d)
any other expenses considered by the issuing officer to be reasonable in the circumstances.
(5)
In this section, a dependant is a person who is dependent on the specified person and who is either or both—
(a)
a child of the specified person:
(b)
a member of the household of the specified person.
(6)
In making an order under subsection (1), the issuing officer may have regard to all facilities available to the specified person, not only those subject to the temporary freezing order.
129F Content of temporary freezing order
(1)
A temporary freezing order must contain the following:
(a)
the name of the specified person who is the subject of the order:
(b)
the name of each of the reporting entities that will be required to comply with the order:
(c)
details of the—
(i)
transaction or class of transactions that are to be frozen in respect of the specified person; and
(ii)
the facility or class of facilities that are to be frozen in respect of the specified person:
(d)
any instructions that the issuing officer considers are necessary to give to any reporting entity on how section 129E is to be given effect:
(e)
any instructions in relation to giving effect to the order that the issuing officer considers to be necessary to avoid alerting the specified person to the Commissioner’s interest in them (if relevant):
(f)
the duration of the temporary freezing order.
(2)
The temporary freezing order must state that—
(a)
there is no right of appeal against the order; and
(b)
an extension for up to 28 days may be sought and will be separately notified if made.
129G When Commissioner may apply for temporary freezing order to be extended
(1)
Before the expiry of a temporary freezing order issued under section 129E, the Commissioner may apply to a High Court Judge for the temporary freezing order to be extended.
(2)
The application must include—
(a)
details of the evidential basis upon which the Commissioner has relied when forming the reasonable grounds to suspect that the transaction or facility, or class of transactions or facilities, is relevant to law enforcement or intelligence purposes and that an offence has been, is being, or will be committed; or
(b)
evidence that an international authority authorised to perform functions broadly equivalent to the Commissioner’s financial intelligence functions has requested that the transaction or facility, or class of transactions or facilities, be frozen.
(3)
The Commissioner must, so far as is practicable, serve a copy of the application on each specified person named in the order unless subsection (5) applies.
(4)
The High Court Judge may, at any time before the application is finally determined, direct the Commissioner to serve a copy of the application on a specified person or class of persons in the manner and within the time that the Judge thinks fit.
(5)
The High Court Judge may, on the request of the Commissioner, consider the application without notice being given to any or all of the persons mentioned in subsection (3) if the Judge is satisfied that giving notice could reasonably be expected to prejudice an ongoing investigation.
(6)
If a request is made under subsection (5), the High Court Judge must, so far as it is practicable and consistent with the interests of justice, ensure that the application is dealt with speedily.
129H Extension of temporary freezing order
(1)
A High Court Judge may, with or without notice to any specified person who is the subject of the order, extend a temporary freezing order issued under section 129E for a period of up to 28 days from the date of the extension.
(2)
A temporary freezing order issued under section 129E may be extended only once under this section.
(3)
The High Court Judge may make the extension subject to any conditions the Judge thinks fit including, without limitation, conditions that provide for the following to be met for the specified person:
(a)
the reasonable living costs of the specified person and any of their dependants:
(b)
the reasonable business expenses of the specified person:
(c)
the payment of any specified debt incurred by the specified person in good faith:
(d)
any other expenses considered by the Judge to be reasonable in the circumstances.
(4)
In this section, a dependant is a person who is dependent on the specified person and who is either or both of the following:
(a)
a child of the specified person:
(b)
a member of the household of the specified person.
(5)
In determining whether to make an extension subject to a condition, the High Court Judge must have regard to all facilities available to the specified person, not only those subject to the temporary freezing order.
129I When temporary freezing order no longer has effect
(1)
A temporary freezing order has effect until the later of—
(a)
the expiry of the period for which the order is issued under section 129E(3):
(b)
the final determination of any application to extend the order that is made under section 129G before the order otherwise ceases to have effect:
(c)
the expiry of any period for which the order is extended under section 129H(1):
(d)
the final determination of proceedings commenced under the Criminal Proceeds (Recovery) Act 2009 for a restraining order, if the following conditions are met:
(i)
the restraining order is in respect of property that is involved in the transaction or facility, or class of transactions or facilities, that is the subject of the order; and
(ii)
the proceedings are commenced before the order otherwise ceases to have effect.
(2)
However, a temporary freezing order ceases to have effect, and subsections (3) and (4) apply, if—
(a)
the Commissioner no longer has reasonable grounds to believe that the transaction or facility, or class of transactions or facilities, is relevant to law enforcement or intelligence purposes and that an offence has been, is being, or will be committed; or
(b)
the international authority authorised to perform functions broadly equivalent to the Commissioner’s financial intelligence functions has informed the Commissioner that the transaction or facility, or class of transactions or facilities, no longer needs to be frozen.
(3)
The Commissioner must, as soon as possible, inform each reporting entity identified in an order made under section 129E or 129H that—
(a)
the grounds on which the order was made are no longer relevant; and
(b)
the reporting entity is no longer required to comply with the order.
(4)
On receiving notification under subsection (3), a reporting entity must no longer comply with an order made under section 129E or 129H.
129J Compensation
(1)
This section applies only in relation to damages or costs against the Crown.
(2)
An affected party may apply to the High Court for damages or costs, or both, resulting from the application of a temporary freezing order made under section 129E or 129H.
(3)
No right to damages or compensation are provided for under this Act if—
(a)
criminal proceedings (including any proceedings under the Criminal Proceeds (Recovery) Act 2009 for a restraining order) resulting from or related to the use of sections 129D to 129I occur; and
(b)
costs are able to be considered in those proceedings.
(4)
No proceedings may be brought against an affected party for failure to comply with a temporary freezing order if that party has acted in good faith and taken reasonable steps to give effect to the order.
Further orders relating to extended temporary freezing orders
129K When specified person may apply to lift extension of temporary freezing order
If a temporary freezing order is extended under section 129H(1), a specified person named in the order may apply to a High Court Judge to lift the order if—
(a)
the person has requested the Commissioner to lift the order and that request has been refused; and
(b)
the Police have not commenced proceedings under the Criminal Proceeds (Recovery) Act 2009 for a restraining order in respect of any property that is involved in the transaction or facility, or class of transactions or facilities, that is the subject of the order.
129L Applying for further orders
(1)
If a temporary freezing order is extended under section 129H(1), an application for a further order may be made to a High Court Judge by—
(a)
the Commissioner; or
(b)
a person with an interest in the transaction or facility, or class of transactions or facilities, that is the subject of the temporary freezing order; or
(c)
with the leave of the court, any other person.
(2)
If an application for a further order is made by a person other than the Commissioner, that person must serve a copy of the application on the Commissioner.
(3)
The High Court Judge may, at any time before the application is finally determined, direct the applicant to serve a copy of the application on a specified person or class of persons in the manner and within the time that the judge thinks fit.
(4)
The following persons are entitled to appear and to adduce evidence at the hearing of an application for a further order:
(a)
the Commissioner:
(b)
a person with an interest in the transaction or facility, or class of transactions or facilities, that is the subject of the temporary freezing order:
(c)
with the leave of the court, any other person.
129M High Court Judge may make further order or lift temporary freezing order
(1)
On an application under section 129K or 129L(1), a High Court Judge may, if the Judge considers it appropriate,—
(a)
make further orders in relation to the transaction or facility, or class of transactions or facilities, that is the subject of the associated temporary freezing order (which may, but need not, be an order of any 1 or more of the types referred to in section 129N):
(b)
lift the temporary freezing order.
(2)
A further order may be made at any time before the expiry of the temporary freezing order.
(3)
A High Court Judge may lift a temporary freezing order only if, having regard to the following, the Judge is satisfied that it would be contrary to the interests of justice for the temporary freezing order to remain in place:
(a)
the value of the transaction or facility, or class of transactions or facilities, that is the subject of the order; and
(b)
any loss or damage to the applicant that is caused, or is likely to be caused, by not lifting the order; and
(c)
the need for the order to remain in place for the purpose of the Police commencing proceedings under the Criminal Proceeds (Recovery) Act 2009 for a restraining order.
129N Types of further order
Without limiting the generality of section 129M(1)(a), a High Court Judge may, on an application under section 129K or 129L(1), make 1 or more of the following further orders:
(a)
an order varying the transaction or facility, or class of transactions or facilities, that is the subject of a temporary freezing order:
(b)
an order varying any condition to which a temporary freezing order is subject.
Notices relating to temporary freezing orders
129O Notices relating to temporary freezing orders
(1)
If a notice or other document is to be given to a person for the purposes of sections 129D to 129N, it may be given—
(a)
by delivering it personally to the person; or
(b)
by delivering it at the usual or last known place of residence or business of the person, including by facsimile; or
(c)
by sending it by pre-paid post addressed to the person at the usual or last known place of residence or business of the person.
(2)
If a notice or other document is to be given to a person (other than an individual) for the purposes of sections 129D to 129N, service on an officer of the person, or on the registered office of the person, in accordance with subsection (1) is deemed to be service on the person.
(3)
If a notice or other document is to be given to a partnership for the purposes of sections 129D to 129N, service on any one of the partners in accordance with subsections (1) and (2) is deemed to be service on the partnership.
(4)
If a notice or other document is sent by post to a person in accordance with subsection (1)(c), it is deemed, in the absence of proof to the contrary, to have been given on the third day after the day on which it was posted.
76 Section 131 amended (Functions)
(1)
In section 131(a), replace “risk of money laundering and the financing of terrorism”
with “risk of money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
(2)
In section 131(c), replace “this Act and regulations”
with “this Act, regulations, and any legislation relating to specified sanctions”
.
77 Section 132 amended (Powers)
In section 132(2)(f), replace “designated business groups”
with “voluntary reporting groups”
.
78 Section 139 amended (Power to disclose information)
(1)
In section 139(1), replace “law enforcement purposes”
, insert “law enforcement or intelligence purposes, or for purposes connected with the performance of the agency’s regulatory functions”
.
(2)
In section 139(2), after “law enforcement”
, insert “or intelligence”
.
79 Section 140 amended (Power to use and disclose information supplied or obtained under other enactments for AML/CFT purposes)
(1)
In section 140(1),—
(a)
replace “supplied or obtained”
with “received or held”
; and
(b)
delete “ensuring compliance with”
.
(2)
After section 140(2)(w), insert:
(wa)
any legislation relating to specified sanctions:
80 Section 142 amended (Financial intelligence functions of Commissioner)
(1)
In section 142(b)(i), replace “money laundering and financing of terrorism transactions”
with “transactions relating to money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
(2)
In section 142(k), replace “money laundering offences and the financing of terrorism”
with “money laundering offences, the financing of terrorism, and non-compliance with specified sanctions”
.
(3)
In section 142(ka), after “law enforcement”
, insert “or intelligence”
.
81 Section 143 amended (Powers relating to financial intelligence functions of Commissioner)
(1)
After section 143(1)(a), insert:
(aa)
order production of, or access to, all records, documents, or information from any person (other than an individual) that is reasonably considered by the Commissioner to hold information that is relevant to analysing information received by the Commissioner under this Act, with or without a court order; and
(2)
After section 143(1), insert:
(1A)
Unless a court order provides otherwise, the Commissioner may require production of, or access to, records, documents, or information under subsection (1)(a) or (aa)—
(a)
as soon as possible after notification, if the Commissioner considers that the production of, or access to, the records, documents, or other information is a matter of urgency; or
(b)
in any other case,—
(i)
by any specified date that the Commissioner considers reasonable in the circumstances; or
(ii)
if no specified date is given, within 10 working days.
82 Section 144 amended (Delegation of powers of Commissioner)
In section 144(1), replace “section 143(1)(a)”
with “section 129A, 129D, 129F, or 143(1)(a) or (aa)”
.
83 Section 145 amended (Guidelines relating to reporting of suspicious activities)
After section 145(1)(a)(i), insert:
(ia)
relevant to the enforcement of a specified sanction; or
84 New section 148A and cross-heading inserted
After section 148, insert:
Financial intelligence functions of Police
148A Financial intelligence functions of Police
The investigative and intelligence branches of the New Zealand Police may, for the purposes of law enforcement, access suspicious activity reports and prescribed transaction reports made to the Commissioner under this Act.
85 Section 152 amended (Functions)
In section 152(b), replace “money laundering offences and the financing of terrorism”
with “money laundering offences, the financing of terrorism, and non-compliance with specified sanctions”
.
86 Section 153 amended (Regulations)
After section 153(1)(d), insert:
(da)
prescribing a class or classes of persons for which a money or value transfer service must not accept a cash transaction:
(db)
specifying infringement fees not exceeding $20,000 for infringement offences in this Act:
(dc)
prescribing penalties for infringement offences in this Act, which,—
(i)
in the case of infringement fees, must not be more than $20,000; and
(ii)
in the case of maximum fines, must not be more than twice the amount of the infringement fee for the offence:
(dd)
prescribing offences for the contravention of the regulations or rules and maximum fines for those offences not exceeding $40,000:
(de)
prescribing infringement offences for the contravention of the regulations and prescribing for those offences—
(i)
maximum fines, which must not be more than twice the amount of the infringement fee for the offence; and
(ii)
infringement fees not exceeding $20,000:
87 Section 154 amended (Regulations relating to application of Act)
In section 154(2)(b), replace “risk of money laundering and the financing of terrorism”
with “risk of money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
88 New section 154A inserted (Regulations relating to virtual assets)
After section 154, insert:
154A Regulations relating to virtual assets
(1)
The Governor-General may, by Order in Council made on the recommendation of the Minister, make regulations for the following purposes:
(a)
prescribing applicable threshold values for the purposes of section 67AB(a) and (b) (including by reference to different virtual assets or classes of virtual assets):
(b)
prescribing transactions and time periods for the purposes of section 67AB(b):
(c)
prescribing a virtual asset as a restricted virtual asset for the purposes of section 67AB(c):
(d)
prohibiting the buying or selling of all virtual assets by way of cash transactions for the purposes of section 67AB(d).
(2)
The Minister must, before making any recommendation, have regard to—
(a)
the risk of money laundering and the financing of terrorism; and
(b)
the impact on the prevention, detection, investigation, and prosecution of offences.
(3)
The Minister must also, before making any recommendation,—
(a)
do everything reasonably possible 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 persons, of the proposed terms of the recommendation and of the reasons for it; and
(b)
give those persons or their representatives a reasonable opportunity to consider the recommendation and to make submissions on it, and consider those submissions; and
(c)
make copies of the recommendation available for inspection by any person who so requests before any regulations are made in accordance with the recommendation.
(4)
Failure to comply with subsection (3) does not affect the validity of any regulations made under this section.
(5)
Regulations under this section are secondary legislation (see Part 3 of the Legislation Act 2019 for publication requirements).
89 Section 156 amended (Consultation not required for consolidation of certain regulations and minor amendments)
(1)
In section 156, after “section 154(3)”
, insert “or 154A(3)”
.
(2)
In section 156(a), after “section 154”
, insert “or 154A”
.
90 Section 156B amended (AML/CFT supervisor may make rules)
(1)
In section 156B(1)(a)(v), replace “designated business group”
with “mandatory reporting group or a voluntary reporting group”
.
(2)
After section 156B(1)(a)(viii), insert:
(ix)
the process that must be followed for checking whether a person is subject to a specified sanction (including, without limitation, the occasions or intervals at which checks must be carried out, the methodologies that must be used, the persons that must be checked, and the process that must be followed if a check shows that a person is or may be subject to a specified sanction):
91 Section 156F amended (AML/CFT supervisor may make notice relating to application of Act)
(1)
In section 156F(1)(j), replace “designated business group”
with “voluntary reporting group”
.
(2)
In section 156F(1)(k), replace “designated business group”
with “voluntary reporting group”
.
92 Section 157 amended (Minister may grant exemptions)
In section 157(3)(c), replace “risk of money laundering and the financing of terrorism”
with “risk of money laundering, the financing of terrorism, and non-compliance with specified sanctions”
.
93 Section 159B amended (AML/CFT supervisor or Commissioner may approve forms)
After section 159B(2)(c), insert:
(d)
applications for ongoing production orders under section 129A:
(e)
ongoing production orders made under section 129B:
(f)
applications for temporary freezing orders under section 129D or extensions of temporary freezing orders under section 129G:
(g)
temporary freezing orders made under section 129E or extensions of temporary freezing orders under section 129H.
Part 2 Amendments to other enactments
Subpart 1—Amendments to Crimes Act 1961
94 Principal Act amended
This subpart amends the Crimes Act 1961.
95 Section 243 amended (Money laundering)
(1)
In section 243(2), replace “7 years”
with “14 years”
.
(2)
In section 243(3), replace “5 years”
with “10 years”
.
Subpart 2—Consequential amendments
96 Consequential amendments to legislation
Amend the legislation specified in the Schedule as set out in that schedule.
Schedule Consequential amendments
s 96
Part 1Amendments to Act
Lawyers and Conveyancers Act 2006 (2006 No 1)
After section 188(2)(f), insert:
(fa)
to the AML/CFT supervisor (within the meaning of section 5(1) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009) for the law enforcement or intelligence purposes of that Act; or
In Schedule 2, after clause 4(g), insert:
(ga)
to the AML/CFT supervisor (within the meaning of section 5(1) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009) for the purposes of that Act; or
Part 2Amendments to secondary legislation
Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Regulations 2011 (SR 2011/225)
Revoke regulation 12AB.
Revoke regulation 15.
Revoke regulation 15H.
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