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As Bartercard explain, legislation is constantly changing, to keep up with the fast paced and ever evolving business world and latest technology advances. As they say, “You can’t plan for every eventuality, but there are some things you can plan for,” and one of them is the changes that have just occurred to the Anti-Money Laundering (AML) & Counter Financing of Terrorism (CFT) Act, which was first introduced in 2013.
The original act imposed a series of obligations on banks, fund managers, financial advisers, debt collectors, safe deposit box vaults and numerous other entities, and was designed to ensure such businesses and financial instructions were able to detect and report potentially criminal origins or purposes of money.
However, this year, these legislative requirements are being extended to include the legal, real estate, sports betting, and high value goods industries (jewelry, precious metals, precious stones, watches, motor vehicles, boats, art, or antiques where cash payments of $15,000 or more are taken). It is estimated the impact will more than quadruple the number of businesses in New Zealand required to contend with The AML Legislationrequirements.
Bartercard warn that with a shift from warning to prosecution, it’s imperative businesses understand their obligations in ensuring AML processes and structures are in place ahead of the legislation which has now come into force for their industry.
The Compliance Officer role is perhaps one of the most important aspects of the AML/CFT system, and as Bartercard explain, an employee must be designated to administer and maintain a business’ AML/CFT programme. It doesn’t have to be a standalone position; however, the role must report to a senior manager of the reporting entity with access to any board of directors or relevant management committee.
The CFT and AML Compliance Officer has a substantial stake in the business to meet legislative requirements with them becoming personally liable for breaches of the Act, the penalties for which can be up to $200,000 per breach.
Monitoring Suspicious Activity in addition to Transaction Reporting to the Police Financial Intelligence Unit is also an important component of the legislation. International wire transfers of $1,000 or more and any physical cash transaction of $10,000 or more must be reported to the Police Financial Intelligence Unit. For high value goods dealers, they will have to file reports on any cash transaction of $15,000 or greater and may file a report on suspicious activity that does not result in a transaction.
For more detailed information on the AML & CFT Act, download Bartercard’s free eBook (https://bit.ly/2tgwXOb). Formore information on increased sales, increased profits and increasing profits please go to www.bartercard.co.nz