How does the FMA supervise AML/CFT?
FMA is committed to a risk-based approach in countering money laundering and terrorist financing. This means we allocate our resources and efforts to the areas where we perceive the greatest threat to our statutory objectives, in order to:
- detect and deter money laundering and the financing of terrorism
- maintain and enhance New Zealand's international reputation by adopting, where appropriate in the New Zealand context, recommendations issued by the Financial Action Task Force
- contribute to public confidence in the financial system.
Criminals are increasingly flexible and innovative in their efforts to launder money and attempt to avoid detection. It is therefore important that our anti-money laundering responses are flexible, proportionate and cost-effective. These are the main characteristics of a risk-based AML/CFT regime.
Is it the same as Australia?
No. One of the policy drivers behind the legislation was trans-Tasman integration, but only where it is appropriate for New Zealand. The detail in the legislation and the Government's approach differs in a number of areas, so it is imperative that reporting entities fully understand their obligations under the New Zealand regime.
Completing your annual AML/CFT report
Click on any of the topics below to find answers about completing your annual AML/CFT report. If you can't find the answers you're are looking for please email us at [email protected]
Why do I need to submit an annual AML/CFT report?
All reporting entities (as defined in the AML/CFT Act) must prepare an annual report on their risk assessment and compliance programme under section 60 of the AML/CFT Act. This needs to be in the format set out in Schedule 2 of the Anti-Money Laundering and Countering Financing of Terrorism (Requirements and Compliance) Regulations 2011 and must be submitted to the relevant AML/CFT supervisor. A list of AML/CFT supervisors can be found here. Information from these reports provides us with important information on AML/CFT reporting entities and will help us:
- understand the risk of money laundering and financing of terrorism activities in each reporting entity
- ensure that information we have on our reporting entities is accurate and up-to-date
- determine the best use of our resources.
When can I submit my annual AML/CFT report?
You must submit your report between the 1st of July and the 31st of August annually. The dates are fixed because the information included in the report must include data up to, and including 30th of June annually.
What does the annual AML/CFT report cover?
The covers five broad topics:
- Part 1 – Business contact details and organisation structure
- Part 2 – AML/CFT risk assessment and AML/CFT programme
- Part 3 – Products and services, customers and channels
- Part 4 – AML/CFT supervisor-specific questions
- Part 5 – Compliance with exemptions
Schedule 2 of the AML/CFT (Requirements and Compliance) Regulations 2011 determines the content for the annual AML/CFT report.
|PLEASE NOTE: For questions 6.2.1 up to and including 6.2.74, the total percentage (%) should add up to 100%.
Can I submit a handwritten report or create my own annual AML/CFT report, based on the user guide or some other template?
No. We cannot accept reports based on individually designed templates. Submissions must only be made by completing and submitting our annual AML/CFT report submission form. See the instructions above about how to open and complete it.
Can I use a template provided by another supervisor (or anyone else) to complete my annual AML/CFT report?
No. You should use the template provided by your own supervisor. If we are your supervisor then submissions must be made using our annual AML/CFT report submission form. See the instructions above about how to open and complete it.
As a reminder, we supervise: issuers of securities, licensed supervisors, fund managers, client money or property service providers, certain financial advice providers, derivatives issuers, DIMS providers and peer to peer lending and equity crowdfunding service providers.
What happens if I don't submit an annual AML/CFT report?
If you do not submit a report, compliance action may be taken against you.
What happens if I supply false or misleading information?
Penalties may apply if false or misleading information is supplied.
Am I exempt from submitting an annual AML/CFT report?
If you have a full exemption from the AML/CFT Act, you do not need to submit a report. If you have a partial exemption, you may be required to submit a report.
If you do not know whether you need to submit a report, please contact us at [email protected]
Does each member of a designated business group (DBG) need to complete a separate annual AML/CFT form?
Yes. Each member of a DBG must complete a separate annual AML/CFT form, except as noted in Part Two (Questions 4-5) for reporting entities that are eligible members of a DBG.
If you are a member of a DBG, you may allow another member to answer Part Two on your behalf. However, please note that you are responsible for the information provided. If you are eligible, use the space provided in Part Two to specify this, together with the legal name and registered number of the member answering Part Two on your behalf. Then leave this part blank and go to Part Three. You are required to answer all other parts of the form.
What happens if my reporting entity doesn't have an FSP number do I still need to complete a report?
You are required to have an FSP number to complete the report.
I am registered on the FSPR to provide a number of financial services, but do not currently provide any. Do I still need to complete an annual AML/CFT report?
You are not a reporting entity unless you carry on some activity that falls within the definition of 'reporting entity' in section 5 of the AML/CFT Act. This includes activities that have been declared by regulations for people to be reporting entities. If you are not a reporting entity, then you do not need to complete a report.
I am overseas for an extended period of time so will have difficulty completing my AML/CFT annual report. May I have an extension beyond 31 August to complete the report?
FMA is not able to grant any extensions.
I sold my reporting entity 'entity 1'? that was in scope for AML/CFT purposes - a few months ago to a separate reporting entity 'entity 2'. Entity 2 is in scope for AML/CFT and will complete an annual AML/CFT report.
- Do I still need to complete an annual AML/CFT report for entity 1?
Reporting entities are required to submit a report. It does not matter whether the ownership of a reporting entity has changed. This means that entity 1 is still required to submit a report even though the ownership has been transferred. The new management of entity 1 will be responsible for making sure it submits its annual report based on the business it has conducted over the year.
- When entity 2 completes its annual AML/CFT report, should it also include all of entity 1s business (ie for the full year regardless of when ownership passed)?
There is no requirement for entity 2 to include entity 1's business in entity 2's report. Each reporting entity can submit its own report. However, if it is more convenient, entity 2 could include all of entity 1's business within entity 2's report - in which case entity 1 would not need to complete a separate report.
- Also what if entity 1 had simply stopped trading or stopped undertaking any financial activities which would bring it into the scope of the AML/CFT Act after 1 July 2018 but before 30 June?
If entity 1 has conducted activities that make it a 'reporting entity' (as defined in section 5 of the AML/CFT Act) at any point during the year, then it will need to complete a report.
How to submit your report
The e-services portal is no longer available, to submit your annual AML/CFT report please follow this link - https://services.fma.govt.nz
For guidance on how to fill in the form, please see the Annual AML/CFT report user guide.
Can I save my responses and go back to complete them at a later date?
Yes. You can save your report and go back into it at any time. When completing the form, we recommend you regularly save your responses.
If you experience any problems submitting your report or if you need help, please contact us.
NOTE: This information does not constitute legal advice. Please consult the relevant statute and regulations and seek independent advice if necessary.