Crown Asset Management Limited

Date Made

Date signed: 2013-11-21

Sectors

Managed investment scheme (MIS) managers

Enacting statement

In accordance with section 157(6)(b) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), the Minister of Justice hereby gives notice that she has granted the following exemptions from the Act:

Ministerial Exemption: Crown Asset Management Limited

Commencement date

This exemption comes into force on 2013-11-21

End date

This exemption will expire on 2015-06-30

Exemption

As the Minister of Justice, pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), I exempt Crown Asset Management Limited from the following provisions of the Act:

1. 1. Part 2, sections 9-71.

Conditions

This exemption is made subject to the following condition:

1. 1. Crown Asset Management Limited is required to notify its Statutory Supervisor, the Department of Internal Affairs, if it lends above $500,000 in one year (starting 30 June 2013) on the one working capital facility it has continued to offer to one customer.

Statement of reasons

This exemption has been made for the following reasons:

1. 1. There is a low risk of money laundering and terrorist financing through Crown Asset Management Limited as:
      
      1. the assets that have been acquired by Crown Asset Management Limited are subject to a traceable history, sourced from the companies that the Shareholding Ministers have directed Crown Asset Management Limited to acquire assets from;
      2. further acquisition of assets is restricted to that directed by the Shareholding Ministers (the Ministers of Finance and State Owned Enterprises);
      3. Crown Asset Management Limited's activities are subject to Crown supervision assisted by the Treasury and Crown Ownership Monitoring Unit;
      4. Crown Asset Management Limited is required to make distributions to its shareholders on a quarterly basis;
      5. Crown Asset Management Limited's purpose, to acquire assets from six companies and obtain the best return for the Crown, is intended to be concluded by 30 June 2014; and
      6. Financial Transactions Reporting Act 1996 obligations, specifically suspicious transaction reporting, will apply to Crown Asset Management Limited and its representatives when disposing of assets on its behalf.

The obligations imposed on Crown Asset Management Limited would be disproportionate given the low risk of money laundering or terrorist financing in the circumstances outlined in this exemption.

Contact

Any person wishing to provide comment on this notice should contact the AML/CFT Team at the Ministry of Justice by emailing amlcft.exemptions@justice.govt.nz.