Exciting news!
Amended AML/CFT Regulations came into force on 9 July 2021.
A summary of the changes can be found on the DIA website here. The reg’s that I think will affect many of my clients are as follows:
- The AML/CFT audit timeframe has been extended from two years, to three years.
DIA can request a more frequent or less frequent audit. - “You will no longer be captured under the AML/CFT Act when you receive funds from clients to pay certain types of low-risk payments, such as to government departments, some professional services (on behalf of your client), and some payments within NZ of less than $1000. This means you will not have to conduct customer due diligence on the client and cease acting for the client if customer due diligence cannot be conducted.”
In a nutshell, if you hold funds on retainer for clients and use those funds to pay disbursements such as court filing fees etc, then the handling of those funds does not constitute as “managing client funds” and is therefore not a captured activity. - “You will have to obtain information from customers, who are companies, as to whether there are any nominee director relationships or nominee shareholder relationships. If the company declares that such a relationship exists, you will then be required to conduct enhanced customer due diligence on that customer.”
Please make contact if you have any queries.
