The Government is finalising details of how to implement Phase 2 of the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) law, and how the law will work in practice.
These details are set out in the:
And explained in the related information paper:
Note: An earlier version of the information paper contained an error on pages 13 and 24 in the sections about Reliance on another business. The incorrect wording was: "entity A has reasonable cause to believe that entity A has conducted customer due diligence to the appropriate standard." The correct wording (used in this version) is: "entity A has reasonable cause to believe that entity B has conducted customer due diligence to the appropriate standard."
While the focus is on issues related to Phase 2 sectors, some of the proposed reforms will also affect Phase 1 businesses.
A Bill will be introduced to Parliament in early 2017 and the Government intends to pass the law about the middle of the year.
Currently, we are analysing the input we received in December and January when we asked for submissions on three key issues:
There will be further opportunities to comment on and influence the shape of the proposed law reforms when the Bill is considered by a Parliamentary select committee.
The proposals in the exposure draft Bill were informed by an earlier consultation, which took place in August and September 2016.
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