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AML Audit Services

New Zealand’s anti-money-laundering regime came into force on 30 June 2013. From this date most, financial institutions became “reporting entities”. The Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Amendment Bill was passed in August 2017 which redefined reporting entities as:

  • Financial institutions
  • Casinos
  • Lawyers and conveyancers from 1 July 2018
  • Accountants form 1 October 2018
  • Real estate agents from 1 January 2019
  • Trust and company service providers
  • High-value dealers and the New Zealand Racing Board from 1 July 2019

If you are a reporting entity, (other than a high value dealer) you must undertake an audit of your risk assessment and your AML/CFT programme:

Every two years, or

When asked by your AML/CFT supervisor

This audit can be undertaken well in advance of the two-yearly deadline.  Forbes believe there may be several benefits to doing this.

  • You gain peace of mind sooner rather than later
  • You can determine when the best time is for you considering workflows and cashflows.
  • By demonstrating to your AML/CFT supervisor you have been pro-active in meeting your commitments it is unlikely you will require vigorous supervision.

What is an AML/CFT audit?

The audit will assess whether your AML/CFT programme complies with the following obligations:

  • The programme is based on the risk assessment undertaken
  • Includes adequate and effective procedures, policies and controls for:
    • Vetting
    • Training on AML/CFT matters
    • Complying with customer due diligence (CDD) requirements
    • Reporting suspicious transactions
    • Reporting prescribed transactions
    • Record keeping
    • Involves risk management to mitigate risks of money laundering and financing terrorism
    • Prevents the use of products and transactions the might favour anonymity
    • Determining when enhanced CDD is required and when simplified CDD is permitted
    • Determining when and how third part CDD is permissible
    • Monitoring and managing compliance with, and the internal communication of and training in, those procedures, policies, and controls.
  • Whether the policies, procedures and controls are sufficient and have operated effectively throughout the period.

Useful Links

Suspicious Activity Report February 2021 edition issued by the Police Financial Intelligence Unit.

 

Knowledgeable and professional

I would like to express my appreciation for the knowledge and professional approach Lana & Jinsol portrayed during the AML Audit. I particularly appreciated their willingness to share information on how to maintain a good audit trail.  

Lyn Beere
National Compliance Manager, Sotheby’s International Realty

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