Hallmark Life Insurance Company and Hallmark General Insurance Company Limited

Date Made

Date signed: 2013-09-08

Sectors

Life Insurers

Enacting statement

In accordance with section 159(3) 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: Hallmark Life Insurance Company and Hallmark General Insurance Company Limited

Commencement date

This exemption comes into force on 2013-09-09

End date

This exemption will expire on 2016-06-30

Exemption

As the Minister of Justice and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), I provide Hallmark Life Insurance Company Limited and Hallmark General Insurance Company Limited with partial exemptions from the provisions of the Act in relation to the provision of consumer life insurance policies under which consumer credit insurance with a life cover component are offered to customers. The exemptions specifically cover Part 2 of the Act.

Conditions

This exemption is not subject to any conditions.

Statement of reasons

These exemptions have been made for the following reasons:

1. 1. The compliance burden to which both entities would be subjected if this exemption was not granted would be disproportionate to the money laundering and terrorist financing risks involved in the products offered.
   2. The low dollar value of the amounts involved.
   3. The loans to which these consumer life policies relate will have been checked and verified from an anti-money laundering perspective by the underlying credit providers.
   4.  According to international findings, consumer life policies are considered to be lower risk products for money laundering and terrorist financing.

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