New Zealand Supervisors issue a reminder for outsourcing Customer Due Diligence to third parties.
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Each reporting entity under the AML legislation must lodge their annual AML/CFT report with their Supervisor any time between the 1st of July to the 31st of August, for the year ending June 2022. Remember, there are no extensions to this deadline.
It's a good idea to get your report started ahead of time, as there is a fair amount of information that must be gathered. And, if you get stuck, you will still have time to ask for help. With the 31st August deadline fast approaching, here's an overview of what you need to do in order to submit your report.
You might be asking yourself: What is an annual report? Is it important? How does it help me? Do I have to submit it?
The short answer is: yes, it's important, and yes, it's non-negotiable for reporting entities captured by the AML/CFT legislation to submit (law, accounting, real estate, and financial service providers).
The annual report is a submission of information regarding the 12-month period from 1 July to 30 June each year. It is required by section 60 of New Zealand's Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The annual report itself applies to activities that are covered by the Act. Each reporting entity is required to submit by the deadline, or as otherwise directed by their Supervisor.
Your AML/CFT annual report is important for demonstrating to your Supervisor that you're meeting your AML requirements, for giving insights for AML Supervisors to understand your business, and to help you remain on top of your AML compliance.
It is especially important for the Supervisors. They use the annual report to understand how your business is:
This can often help assist in their decisions of who to audit.
Pulling together your AML/CFT report also serves as a great opportunity for you to review and update the status of your risk assessment and compliance programme (RA/CP). The RA/CP must be representative of the current state of your business, so it's efficient to plan a yearly review of your documents around the same time as your annual report.
So, what is actually required for your annual report?
The report covers five areas:
Depending on your sector, and supervisor, there may be additional requirements you need to complete.
It must be:
You must lodge your annual AML/CFT report in the manner requested by your Supervisor. If you need help in getting your report together, there are several options you can try to get things moving:
With the Reserve Bank of New Zealand? Head here for more information: https://www.rbnz.govt.nz/regulation-and-supervision/anti-money-laundering-and-countering-terrorism-financing/aml-cft-obligations
With the Financial Markets Authority? Head here for more information: https://www.fma.govt.nz/compliance/guidance-library/annual-amlcft-report-user-guide/
Find out how AMLHUB can help you get your annual report sorted
AMLHUB records all your AML activities in one place, making it easy to gather all your information when the time for your annual report rolls around. Internal management reports can be generated for specific time periods, making it easy to view key statistics to input into your annual report.
See how the AMLHUB works by booking a short online demo. Fill out the form and our team will be in touch ASAP.