NEW ZEALAND GAZETTE, No. 179

23 DECEMBER 2010

Applicable threshold values

11. Applicable thresholds for the purposes of the occasional transaction definition will be:

11.1 For cash transactions in a casino, $6,000(^1) and above.

11.2 For the sale of stored value instruments where no part of the monetary value stored on (or in relation to) the instrument can be withdrawn in cash, $5,000 and above.

11.3 For the sale of stored value instruments where all or part of the monetary value stored on (or in relation to) the instrument can be withdrawn in cash, $1,000 and above.

11.4 For the sale and encashment of traveller’s cheques, $5,000 and above.

11.5 For the sale and encashment of money and postal orders, $1,000 and above.

11.6 Currency exchange transactions, $1,000 and above.

11.7 All other occasional transactions, $10,000 and above.

12. The applicable threshold for the purpose of the definition of beneficial ownership will be 25%.

Simplified due diligence

13. Simplified due diligence may be applied to:

13.1 trustees and statutory supervisors as defined by section 48 of the Securities Act 1978 when acting in their own corporate capacity (not in respect of any trust they may be acting for)

13.2 trustee companies as defined by the Trustee Companies Act 1967, when they are acting in their own corporate capacity (not in respect of any trust they may be acting for)

13.3 Crown entities as defined by section 7(1) of the Crown Entities Act 2004, with the exception of the Public Trust (which will be treated equivalently to Trustee Companies, see above)

13.4 organisations named in Schedule 4 of the Public Finance Act 1989

13.5 government bodies (equivalent to those defined in the NZ State Sector Act 1988) located in overseas jurisdictions with broadly equivalent AML/CFT regimes.

Exemptions

14. Exemptions will be provided for as described below.

14.1 Lawyers (or incorporated law firms), conveyancing practitioners (or incorporated conveyancing firms), accountants or real estate agents to the extent that they are captured by the Financial Transactions Reporting Act 1996 (FTRA), will be exempt from all obligations.

14.2 Retail businesses (including pawnbrokers) will be exempt from all obligations.

14.3 Government departments (listed in Schedule 1 of the State Sector Act 1988) will be exempt from all obligations.

14.4 The Reserve Bank of New Zealand will be exempt from all obligations.

14.5 Currency exchange services in hotels (and other providers of accommodation) will be exempt from all obligations except suspicious transaction report (STR) obligations and associated record keeping on the condition that transaction limits of $1,000 are in place.

14.6 The provision of safety deposit boxes in traveller accommodation will be exempt from all obligations on the condition that the facility is located either:

14.6.1 in the room of the registered guest and controlled by the registered guest; or

14.6.2 outside the room of the registered guest but within the place of the traveller accommodation and controlled by the provider of the traveller accommodation, and holds funds of registered guests.

14.7 Low-value life insurance products will be exempt from customer due diligence (CDD) obligations on the condition that identity verification is conducted on pay-out of the policy.

14.8 Pure risk-based life insurance products (including funeral policies) will be exempt from all obligations.

14.9 Insurance products closed to new customers or premiums (other than those contractually agreed) will be exempt from all obligations.

14.10 Securities registries will be exempt from all obligations except STR reporting and associated record keeping on the condition that in respect of off-market or paper-based share transfers, another reporting entity (or person subject to the requirements of the FTRA) must have certified that customer due diligence has taken place in accordance with the AML/CFT Act on the transferor before the transfer takes place.

14.11 Eligible workplace based superannuation schemes from verification of CDD information at the establishment of a business relationship, on the following conditions:

14.11.1 The customer’s identity and address has been verified by his or her employer or the Inland Revenue Department.

14.11.2 The relevant information is passed on to the provider of the scheme, as soon as practicable.

14.11.3 The provider undertakes CDD in accordance with the AML/CFT Act prior to the payment of any benefit.

14.12 Low-value superannuation schemes will be exempt from all obligations.

14.13 Overseas pension bank accounts that are opened, administered and operated under the Social Security (Alternative Arrangement for Overseas Pensions) Regulations 1996, will be exempt from CDD requirements.