Most Read Contributor in New Zealand, September 2016
If your charity is at risk of being caught by the provisions of
the Anti-Money Laundering and Countering Financing of Terrorism
Act 2009 (the Act), you should be seeking
advice now on whether you could qualify for an exemption.
The Act will not come fully into effect until late 2012 but the
Ministry of Justice has advised charitable organisations which
think they might be affected to start preparing for it now.
This Brief Counsel looks at the Act and at the exemption
Charities which might come within the Act
Charities which are engaged in the ordinary course of business
in a range of financial activities, including lending (for example
for housing or new enterprises), or investing, administering or
managing funds on behalf of other persons, may come within the
Reporting entities under the Act will face significant
compliance costs as they will be required to comply with a range of
obligations, such as; preparing a written risk assessment, having
an AML/CFT programme and officer, reporting suspicious transactions
and carrying out a range of customer due diligence procedures.
The Ministerial exemption
The Act provides the Minister of Justice with the power to
exempt organisations from unintended consequences of the
legislation on a case by case basis.
Before deciding to grant an exemption, and whether to attach any
conditions, the Minister must have regard under section 157 of the
the intent and purposes of the Act (and its soon-to-be
predecessor, the Financial Transactions Reporting Act
the risk of money laundering and the financing of terrorism
associated with the reporting entity
the impacts on prevention, detection, investigation and
prosecution of the money laundering offences
the level of regulatory burden to which the reporting entity
would be subjected to in the absence of an exemption
whether the exemption would create an unfair advantage for the
reporting entity or disadvantage third party reporting entities,
the overall impact that the exemption would have on the
integrity of, and the compliance with, the AML/CFT regulatory
If you would like further information on the exemption process,
or on the requirements under the Act, please contact Chapman
The information in this article is for informative purposes
only and should not be relied on as legal advice. Please contact
Chapman Tripp for advice tailored to your situation.
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