Amendment notice inserts new parts 1 to 13 into schedule of the principal notice.
The new parts amend certain outdated and incorrect references but are otherwise identical in terms to existing parts 1 to 13, as in force immediately before their expiry.
Amendments to Class Exemptions
New parts 1-13 will take the place of existing parts 1-13 which grant class exemptions.
Part 1 is re bodies corporate, body corporate managers; part 2 is re public trust, Maori trustee, trustee firms; part 3 is re services provided re certain retirement schemes.
Part 4 relates to pay as you earn (PAYE) intermediaries; part 5 relates to reporting entities whose customers are licensed managing intermediaries; in addition, part 6 relates to reporting entities whose customers are specified managing intermediaries.
Part 7 is re shared compliance officer for members of a designated business group.
Part 8 is re financial advice providers arranging for relevant services to be provided for retirement schemes; and part 9 is re specified employee security purchase schemes.
Part 10 is re specified securities investment schemes; part 11 is re casino loyalty schemes; part 12 is re statutory supervisors of retirement villages; part 13 relates to designated issuers that issue debt securities to certain subscribers via intermediaries.
Effectiveness
Amendment notice comes into force on Jun. 30, 2023; new parts 1 to 13 expire Dec. 31, 2024; however, certain exemptions in new parts 1 to 13 expire on Dec. 31, 2023.
Jun. 27, 2023 NZ Justice
On Jun. 27, 2023, NZ Justice issued press release publicizing the renewal of the AML/CFT class exemptions for a period of 18 months, as detailed in the notice above.
This 18-month period will align considerations of the class exemptions with the timing of wider work on the AML/CFT regime; the Ministry of Justice will be engaging in consultation on proposed changes to the class exemptions later in 2023.
Noted parts of the managing intermediaries exemptions retained for only 6 months.
Minor changes to the managing intermediary exemptions overlap with the new draft AML/CFT early regulations package, which are due to come into force later in 2023.
Changes to the definition of beneficial ownership in those early regulations would mean that the customers of customers are no longer captured under the 2009 act.
The managing intermediaries’ exemptions will be altered to reflect this to avoid any confusion, and to allow time for the early regulations package to come into effect before those redundant elements of the class exemptions are phased out.
Removes exemption requirement in part 5 of schedule of principal notice, for reporting entities whose customers are licensed managing intermediaries to undertake enhanced customer due diligence on a beneficial owner of licensed managed intermediary.
Extends application of part 5 of schedule of principal notice to reporting entities in respect of customers who are licensed managing intermediary customers until close of Dec. 31, 2024; and it extends application of part 6 of schedule of principal notice.
Namely, re reporting entities in respect of customers who are specified managing intermediary (SMI) customers until Dec. 31, 2024; inserts new part 18 in schedule of principal notice; new part 18 exempts operator of a money or value transfer service.
Plus, exempts any agents or sub-agents of those operators from a requirement.
In addition, if it is only to improve compliance with requirements of act and regs made under act; inserts new part 19 in schedule of principal notice; new part 19 exempts reporting entities from their requirement to conduct simplified customer due diligence.
Specifically, under s 18(3) of act on a person who purports to act, by electronic means, on behalf of a customer, provided that certain conditions are met; in force Dec. 31.
Amendment changes expiry date for exemptions under parts 1-13 of schedule of principal notice to Dec. 31, 2026; removes operators of money/value transfer services.
Specifically, amendment notice removes them from the exemption under part 6, which applies to reporting entities whose customers are specified managing intermediaries.
Amendment notice also replaces parts 14-15 of schedule of principal notice with new parts 14-15; those parts grant class exemptions for transactions of tax pooling intermediaries, and for barristers sole; the new parts will expire on Dec. 31, 2026.
The new parts are otherwise identical to existing parts 14-15, as in force prior to being revoked and replaced; this amendment notice comes into force on Dec. 31, 2024.
Regulators
NZ GVT; NZ Justice; NZ PRL
Entity Types
Corp; IB; MSB
Reference
OG 2024/249, 11/28/2024; OG 2023/293, 12/21/2023; PR 6/27/2023; OG 2023/109, 6/8/2023; Citation: Anti-money laundering and countering financing of terrorism act 2009; Anti-money laundering and countering financing of terrorism (class exemptions) notice 2018; Anti-money laundering and countering financing of terrorism (class exemptions) amendment notice 2023; Anti-money laundering and countering financing of terrorism (class exemptions) amendment notice (no 2) 2023; Anti-money laundering and countering financing of terrorism (class exemptions) amendment notice 2024;
