Phase 1 of the AML/CFT Act
Phase 1 of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act has been in force since 2013. It applies to banks, casinos and a range of financial service providers.
See how recent changes to the AML/CFT Act affect "Phase 1" businesses
Three government agencies are responsible for supervising the various businesses and industries the Act applies to:
- the Reserve Bank (external link) , supervises banks, life insurers and non-bank deposit takers
- the Financial Markets Authority (external link) , supervises derivatives issuers, brokers and custodians, equity crowd funding platforms, financial advisers, managed investment scheme managers, peer-to-peer lending providers, discretionary investment management services, licensed supervisors and issuers of securities.
- the Department of Internal Affairs (external link) , supervises casinos and other financial service providers that are not covered by the Reserve Bank or Financial Markets Authority. DIA will also supervise Phase 2 businesses and professions.
Other government agencies involved in the regime include:
- The Ministry of Justice is responsible for policy development and the administration of the legislation. We also handle all matters related to exemptions from the Act.
- The New Zealand Police financial intelligence unit (external link) receives and analyses suspicious transaction reports. It also issues guidance to reporting entities and the three supervisors about reporting obligations under the Act, and provides information on money laundering and terrorism trends and methods.
- The New Zealand Customs Service enforces the Act’s cross-border cash reporting regime.
AML/CFT changes that affect "Phase 1" businesses
Some of the changes made by the AML/CFT Amendment Act 2017 also affect Phase 1 businesses (that is, banks, casinos, a range of financial service providers, and some trust and company service providers).
- you will have to report more than just suspicious transactions – from 1 July 2018 you also need to report suspicious activities to the Police Financial Intelligence Unit (FIU).
- you will have to report international wire transfers and physical cash transactions above certain amounts (known as “prescribed transactions) to the FIU. You’ll need to do this from 1 November 2017.
- It will be easier for you to share AML/CFT obligations with other businesses.
For more information, see Working with others to reduce your anti-money laundering compliance costs and Reporting suspicious activities.