SME Businesses Advised to Take Extra Care with New Anti-Money Laundering Laws

It’s been almost a month since phase two of the new Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) laws were initiated on 1 July. In light of this, Kiwi-owned small and medium-sized enterprises (SME) are being advised to take extra care to ensure all their large cash transactions comply with the new legislative requirements.

The following SME industries/businesses have been affected by the law changes: law, conveyancing, accounting/finance, real estate, businesses that trade in high-value goods, and businesses that provide trust and company services. These businesses generally deal with large amounts of funds and are therefore at risk of being exploited by criminals to launder money or finance terrorism.

Businesses operating in the aforementioned sectors will need to designate an AML/CTF compliance officer and establish a compliance program for risk management. On an ongoing basis, businesses have to conduct customer due diligence, verify customer identity, submit police reports of cash transactions of $10,000 or more or international wire transfers of $1,000 or more, monitor client accounts to identify suspicious activity, and submit an annual report to the Department of Internal Affairs (DIA).

Businesses that don’t comply with the new AML/CFT requirements could be fined up to $2 million or face a term of imprisonment of up to two years.  

If you’re unsure how your business should go about complying with the new AML/CFT legislation, contact the professional legal team at Gillespie Young Watson today. They can help you sort out legal compliance, and provide expert advice on specialist practice areas, including property law and trust law.

For more information, visit the Gillespie Young Watson website at https://gywlaw.co.nz/.