Updated Anti-Money Laundering Rules Impose Serious Obligations on Lawyers, Accountants, and Real Estate Agents
The way lawyers, accountants, and real estate agents do business in New Zealand is about to change significantly. These
industries are now subject to new regulations that could see individuals and companies subject to fines of up to $5
million, or imprisonment, for failures to comply.
The Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Amendment Bill was passed unanimously by
Parliament yesterday, meaning the newly caught industries have, in some cases, a matter of months to create and
implement a robust AML/CFT regime.
New Zealand lawyers, accountants, real estate agents, and high value dealers will need to undertake the same compliance
activities that financial service providers have been grappling with since 2013 when the AML/CFT Act 2009 came into
force. Reporting entities under the AML/CFT Act must:
• Complete and maintain a New Zealand-specific Risk Assessment and Programme;
• Appoint and train an AML/CFT Compliance Officer;
• Train and vet staff, directors, and governance board members;
• Undertake Know Your Customer (KYC) checks on all customers, verifying their identities and in some cases their
sources of wealth;
• Monitor the transactions of all customers according to the level of money laundering or terrorist financing risk
posed by them, and file Suspicious Activity Reports (SARs) to the New Zealand Police Financial Intelligence Unit (FIU)
when necessary.
The consequences of noncompliance can be very serious. Back in 2012, HSBC forfeited £1.2 billion for having inadequate money laundering controls, and yesterday saw the threat of huge penalties creep closer to home
with the Commonwealth Bank of Australia facing the staggering possibility of a $96 billion fine for alleged AML/CFT
failures.
Fiducia offers New Zealand’s first DIY AML/CFT Risk Assessment and Programme templates designed to help New Zealand
lawyers, accountants, and real estate agents comply quickly and inexpensively with their new requirements. These
templates include step by step instructions that can be downloaded and completed in-house, without expensive consultancy
fees.
For those businesses wishing to take a more strategic approach to ensuring compliance with the AML/CFT Act doesn’t slow
their rate of innovation, Fiducia offers cutting-edge, bespoke consulting engagements that makes sure compliance
problems are solved before they arise.
For regular AML/CFT compliance updates sign up to Fiducia e-news or follow Fiducia on LinkedIn.
ENDS