The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) and its regulations place obligations on New Zealand’s financial institutions to detect and deter money laundering and terrorism financing.
Money laundering is how criminals disguise the illegal source of their money. Financers of terrorism use similar techniques to avoid detection and protect the identity of those providing and receiving the funds.
The anti-money laundering and countering financing of terrorism regime was established to detect and deter money laundering and the financing of terrorism, to maintain and enhance New Zealand’s international reputation and to support public confidence in the financial system. It does this by facilitating co-operation amongst reporting entities, supervisors, and other government agencies, in particular law enforcement and regulatory agencies.
Who needs to comply
The FMA is one of three supervisors under the Act, along with the Reserve Bank of New Zealand and Department of Internal Affairs.
The FMA supervises issuers of securities, licensed supervisors and statutory supervisors, derivatives issuers and dealers, fund managers, brokers and custodians, financial advisers, equity crowdfunding platforms and peer-to-peer lenders.
The reporting entities supervised by the FMA are listed in section 130 of the Act. They include issuers of securities; licensed supervisors; derivatives issuers and dealers; DIMS providers; fund managers; brokers and custodians; financial advisers; equity crowdfunding platforms; peer-to-peer lenders.