AML/CFT Obligations for New NZ Companies: A Practical Guide for Directors

AML/CFT compliance for newly-registered NZ companies

If your newly-registered NZ company provides certain regulated services, the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act) applies to you from the date you begin providing those services.

Which new NZ companies have AML/CFT obligations?

The AML/CFT Act applies to "reporting entities" in New Zealand. If your new company falls into any of these categories, you have AML/CFT obligations:

• Financial advice providers (FAPs): licensed financial advisers, investment managers, KiwiSaver advisers
• Law firms and conveyancers: when handling client funds or conducting certain property transactions
• Accountants: when providing certain trust and company services, or acting as a company agent
• Real estate agents: when handling client funds in property transactions
• Casinos and gambling venues: all categories
• Non-bank financial institutions: money changers, remittance services, lenders, credit card issuers

What you must do as a reporting entity

1. Register with your AML/CFT supervisor: Financial advisers register with the FMA; accountants with NZICA or the DIA; lawyers with the Law Society
2. Develop an AML/CFT programme: a written document covering your risk assessment, customer due diligence (CDD) processes, and transaction monitoring
3. Complete a risk assessment: identify the money laundering and terrorism financing risks in your business
4. Conduct customer due diligence (CDD): verify client identity before providing services
5. Report suspicious transactions: to the Financial Intelligence Unit (FIU)
6. Annual AML/CFT report: file with your supervisor each year

Getting AML/CFT help for your new company

AML/CFT compliance consultants and lawyers specialising in financial regulations can help you set up your programme correctly from the start. This is considerably cheaper than fixing non-compliance after an audit.

If you are an AML/CFT compliance consultant or lawyer, FreshFirms can alert you to new NZ companies in regulated sectors. Start a free trial to see newly-registered financial service companies, law firms, accounting practices, and real estate agencies in your region.