Anti-Money Laundering and
Countering the Financing of Terrorism

Consultation Draft Anti-Money Laundering and Countering Financing of Terrorism Bill

As a member of the Financial Action Task Force (FATF), New Zealand is required to implement enhanced international anti-money laundering and counter terrorist financing (AML/CFT) standards. The government is committed to working with industry to ensure that the regime is effective in detecting and deterring money laundering at minimum cost to industry, is a 'best-fit' to New Zealand's institutional environment, and to the greatest extent possible aligns with the Australian anti-money laundering regime. We are seeking your comments on a Consultation Draft Anti-Money Laundering and Countering Financing of Terrorism Bill (Consultation Draft Bill PDF 676KB) by 5pm, 10 October 2008.

The Consultation Draft Bill reflects a number of Cabinet decisions relating to the basic structure of the regime, and the basic elements of what the New Zealand AML/CFT regime will provide for in relation to our FATF member obligations. Cabinet has agreed that the new regulatory framework would:

• be implemented over two phases. In the first phase it would extend to financial institutions and casinos, and in the second phase to certain types of non-financial businesses and professions;
• be supervised by existing agencies, which have existing responsibilities for the various sectors covered;
• include new civil and criminal offences;
• include a set of core requirements relating to customer due diligence, reporting, and AML/CFT policies and practices; and
• a set of objectives and criteria to guide ongoing development and implementation of the regulatory framework.

The government has not formally approved the Consultation Draft Bill but has approved its release as a working draft. Further work and decisions are required in relation to the detail of various dimensions of the reforms. We welcome all views on the Consultation Draft Bill.

We anticipate that an AML/CFT reform Bill will be formally introduced to Parliament in April 2009 (subject to Cabinet agreement). Following the Bill's introduction, there will also be a further opportunity for the public to make submissions on the Bill as part of the usual select committee process.

Submissions on the Draft Bill are due by 5pm, 10 October 2008.

Please address all submissions to:

International Criminal Law
Crime Prevention & Criminal Justice Group
Ministry of Justice
PO Box 180
Wellington

Email: mike.asplet@justice.govt.nz

We would appreciate receiving both a hard copy and an electronic copy of your submission.

We have also released:

• the Deloitte Cost Compliance Report (PDF 2032KB), which sets out an analysis of the range of costs that may be expected when adopting an AML regime in New Zealand across the various sectors to which it will relates; and

Thank you for your engagement in this reform to date. We look forward to receiving your feedback on the Consultation Draft Bill.