The Associate Justice Minister Nicole McKee released a statement yesterday on the Government’s reform plans around the anti-money laundering and countering financing of terrorism (AML/CFT) regime. This was followed today by the Financial Markets Authority, the Reserve Bank of New Zealand, and the Department of Internal Affairs releasing an updated AML/CFT Programme Guideline.
Who needs to read it? Why?
These will both be important for all reporting entities – both as an indication of the direction of reform, and because they will all need to ensure their AML/CFT compliance programmes align with the updated guideline.
What does it cover?
Associate Minister’s Statement
The Associate Minister’s statement explains that Cabinet has approved a reform work programme for the AML/CFT regime, with the main aim being to “provide regulatory relief to businesses and the public”. This work programme is split into three parts.
The first part is to deliver more immediate changes through ongoing legislative reform – in the form of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Amendment Bill and the Statutes Amendment Bill, each of which we have previously discussed.
The second part is intended to “focus on structural changes and a sustainable funding model” (possibly referring to the “hybrid public/private funding model” the regime’s Statutory Review recommends investigating), while the third part would make “additional regulatory changes to implement international standards and deliver a more risk-based system”. Further details have not yet been released on those.
AML/CFT Programme Guideline
The AML/CFT Programme Guideline is a key piece of joint supervisor guidance, as it provides a lot of detail around how reporting entities can produce the compliance programme that they are required to have.
While changes have been made over the years since the initial 2011 version, this appears to be the most comprehensive update, with reordered and expanded sections. We intend to release a subsequent discussion of the content of this updated guideline in the future.
What next?
As previously discussed, the proposed legislative reforms are ongoing, and a firm timeline is not yet clear. Similarly, it is not yet clear when parts two and three of the Associate Minister’s work programme may proceed, or exactly what form those will take (for instance, there may be further consultation).
If you have any questions in relation to the Associate Minister’s statement or the updated AML/CFT Programme Guideline, the wider AML/CFT reforms, or the AML/CFT regime more generally, please contact one of our experts.
This article was co-authored by Sam Short (Senior Solicitor), and Andrew Walker (Solicitor) in our Financial Services team.
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