All three anti-money laundering and countering financing of terrorism (AML/CFT) supervisors, the Financial Markets Authority (FMA), the Reserve Bank of New Zealand (RBNZ) and the Department of Internal Affairs (DIA) have agreed a framework to guide the actions, strategies, tools and techniques that will be used by them to ensure reporting entities comply with the AML/CFT regime.
Each supervisor is responsible for a certain section of the institutions that are subject to the AML/CFT Act 2009 (reporting entities). RBNZ supervises banks, life insurers, and non-bank deposit takers. FMA supervises issuers of securities, trustee companies, futures dealers, collective investment schemes, brokers, and financial advisers. DIA supervises casinos, non-deposit taking lenders, money changers, and any other financial institutions not supervised by RBNZ or FMA.
RBNZ has said that any reporting entities that have not made a genuine and reasonable attempt at compliance and are found to be in breach are likely to face formal enforcement action. It intends to use three tools to assess and ensure compliance with AML/CFT legislation: on-site inspections, desk-based reviews, and thematic surveys and questionnaires. Further details on RBNZ's expectations are set out in a recent RBNZ presentation which is available here.
FMA has also indicated that it will be taking an assertive approach to monitoring and enforcing compliance with the new regime. Details of its enforcement policies are set out in a guide it released in June: FMA's supervision of Anti-Money Laundering and Countering Financing of Terrorism.