Internal Affairs combats money laundering

  • Chris Tremain
Internal Affairs

Internal Affairs will be playing its part in a coordinated international effort to tackle a serious global problem under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, says Internal Affairs Minister Chris Tremain.

The Act comes fully into force on Sunday (30 June 2013).

“Money laundering does occur in New Zealand and is thought to be more than a billion dollars a year.  The Department’s focus will be on supporting regulated parties to understand and comply with the new reporting requirements,” says Mr Tremain.

“The Department of Internal Affairs will be actively promoting compliance and supporting the sector to comply with their obligations. It will however take firm action in cases where a serious breach of the Act occurs, or where it considers entities are actively avoiding their obligations or making insufficient progress towards achieving compliance.”

The Department supervises casinos, non-deposit taking lenders, money changers, money remitters, payroll remitters, debt collectors, factors, financial leasors, safe deposit box vaults, non-bank credit card providers, stored value card providers and cash transporters, and any other reporting entities not supervised by the other supervisors, the Reserve Bank and the Financial Markets Authority.

Under section 5 of the Act reporting entities need:

  • A Risk Assessment of the money laundering and financing of terrorism that they could expect in the course of running their business
  • An AML/CFT Programme that includes procedures to detect, deter, manage and mitigate money laundering and the financing of terrorism
  • A Compliance Officer appointed to administer and maintain their AML/CFT programme
  • Customer Due Diligence processes including customer identification and verification of identity
  • Suspicious Transaction Reporting, Auditing and Annual Reporting systems and processes