Legislation to extend the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime was introduced to the House yesterday.
The Bill will extend the AML/CFT Act to include lawyers, conveyancers, accountants, real estate agents, the New Zealand Racing Board and dealers in high-end goods – e.g. motor cars, jewellery and art – when engaged in large cash transactions.
The amendments represent the second phase in the AML/CFT Act, phase one of which has been in effect since 2013.
The Government has slashed its initial estimate of compliance costs from $1.6 billion over ten years to between $800 million and $1.1 billion. The reduction reflects the fact that fewer people across all of the targeted occupations are now expected to come within the Act's purview than was originally thought.
A phased transition is planned, bringing in:
- lawyers and conveyancers by 1 July 2018 (sensibly extended from the initial proposal of a 6 month implementation period)
- accountants by 1 October 2018
- real estate agents by 1 January 2019, and
- high value dealers and the New Zealand Racing Board (sports and race betting) by 1 July 2019.
An exposure draft of the Bill was released in December last year. Further detail is available on the Ministry of Justice website here.