Renewal of the AML/CFT (Class Exemptions) Notice 2018

Context to short-term extension

The Minister of Justice has granted a short-term extension to exemptions for reporting entities with respect to licensed managing intermediaries (LMI) customers under Part 5 and specified managing intermediaries (SMI) customers under Part 6 of the AML/CFT (Class Exemptions) Notice 2023 (the Notice) in June 2023. The short-term extension meant these exemptions were expiring on 31 December 2023.

It was understood these exemptions were no longer required because of the amended definition to ‘beneficial owner’ under Regulation 5AA of the AML/CFT (Definitions) Amendment Regulations 2023.

The Ministry undertook further consultation with industry which showed there was a continuing need for these class exemptions in light of new Regulation 5AA, and there is no regulation making power to provide the same exemptions.

What are the amendments to the Class Exemptions Notice?

The following parts of the Notice are renewed for a further 12 months:

  1. The class exemptions under Parts 5 and 6 are renewed for reporting entities whose customers are LMI customers and SMI customers expiring on 31 December 2024.

The Minister also granted two further short-term class exemptions to the Notice:

  1. Exemption for reporting entities which are operators of money or value transfer service and agents of the operator from section 46(2) of the Act (new Part 18 of the Notice); and
  2. Exemption from simplified customer due diligence obligations for reporting entities in relation to person acting, by electronic means, on behalf of customer (Part 19).
 
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