The Organised Crime and Anti-Corruption Legislation Bill has
just passed its third reading. The Bill is an omnibus Bill and
forms part of the "all of Government" response programme
aimed at preventing calculated, serious crimes for profit.
The Bill amends the Anti-Money Laundering and Countering
Financing of Terrorism Act 2009 (AML Act) and those changes will
come into force on 1 July 2017.
What does it mean for you?
As a result of the changes, in addition to ensuring that
customer due diligence has been conducted in line with AML Act
requirements and remains current, reporting entities (such as
banks) will need to report all international wire transactions over
$1000 and domestic physical cash transactions over $10,000 to the
Police Financial Intelligence Unit (PFIU).
As part of ensuring that customer due diligence requirements are
met, we are often required to provide confirmation to banks of the
identity of our clients including copies of their Government issued
photo and documentary identification. This applies even where you
are a long term client of the firm. While it can be annoying when
you are an existing client of Cavell Leitch, before proceeding with
transactions we are obliged to sight and take copies evidencing
your identity (e.g. passport or driver's licence and birth
certificate, together with proof of address such as a bill).
What else is changing?
There will also be a string of new and amended offences to
prevent hiding illegal profits from crime. Charges for money
laundering will be able to be brought with less difficulty as it is
no longer necessary to show the person intended to conceal the
transaction. Requirements about the severity of the crime from
which the profits are being laundered have also been removed.
Organised crime amendments
Human trafficking crimes will cover trafficking within New
Zealand, whereas previously the crime only occurred where people
were brought in and out of New Zealand. The crime of foreign
bribery will now apply just as strongly to private bodies as it did
to the public sector with them both carrying a maximum sentence of
7 years imprisonment.
To help carry out these changes the Police will be given the
power to share DNA information with international counterparts to
assist investigations. Amendments to the Policing Act 2008 will
expand the ability to share non-DNA information with international
law enforcement agencies as well. There is a list of new offences
created to charge people for selling or passing on identity
information or working with goods used in identity related
The Bill will bring our own laws in line with many international
organisations such as the UN Convention against Corruption and the
OECD Convention on Combating the Bribery of Foreign Public
Officials in International Business Transactions. As New Zealand is
consistently viewed as one of the least corrupt countries in the
world, the Bill should assist in maintaining this standard.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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