23 DECEMBER 2010 NEW ZEALAND GAZETTE, No. 179

4453

14.14 Corporate treasury functions (where financial activity is undertaken within a corporate group but not extended to members of the public or persons outside the corporate group) will be exempt from all obligations.

14.15 Financial institutions in liquidation, receivership, or which have entered into moratorium agreements with their creditors and are unable to issue new debt securities to the public will be exempt from all obligations.

14.16 Reporting entities will be exempt from vetting of staff that are already subject to statutory requirements to be vetted elsewhere, on the condition that the reporting entity is satisfied that the vetting already undertaken is appropriate for the purposes of managing the risks of money laundering and terrorist financing.

14.17 Reporting entities will be exempt from the requirement to collect full originator information for domestic wire transfers and regulations will specify that the transaction itself will constitute identifying information for the purposes of a domestic wire transfer.

14.18 Reporting entities will be exempt from identity and identity verification requirements in respect of wire transfers below $1,000.

14.19 All reporting entities will be exempt from the address verification requirement in respect of occasional transactions.

14.20 All reporting entities will be exempt from CDD obligations related to regulated trust accounts held by another reporting entity or person subject to the FTRA from beneficial ownership requirements on the following conditions:

14.20.1 The reporting entity has taken reasonable steps to satisfy itself that the account is being operated for legitimate and professional purposes and not to obscure beneficial ownership.

14.20.2 That the facility holder has a written agreement with the reporting entity that information relating to the identity of those clients will be produced upon request without delay.

14.21 Debt collection will be exempt from all obligations except STR obligations and associated record keeping.

14.22 Premium funding (including, but not limited to, fees for advice or services provided in connection with such a policy and taxes payable in connection with such a policy) related to insurance products will be exempt from CDD obligations.

14.23 Premium funding (including, but not limited to, fees for advice or services provided in connection with such a policy and taxes payable in connection with such a policy) related to insurance products not captured by the AML/CFT regime, where those agreements are provided by insurance companies and associated with the provision of an insurance policy, will be exempt from all obligations.

14.24 An exemption for a special remittance card facility consistent with the existing exemption for a special remittance card facility under the FTRA.

14.25 General risk-based insurance (those products or policies that are not life insurance and contain no investment component) will be exempt from all obligations.

14.26 The underwriting of general risk-based insurance will be exempt from all obligations.

14.27 All reporting entities will be exempt from the requirement to maintain records of the parties to the transaction, for transactions under applicable thresholds.

14.28 Casinos will be exempt from the section 49 requirements of the AML/CFT Act in respect of the following transactions:

14.28.1 Purchase of chips at the casino cage below applicable threshold.

14.28.2 Redemption of chips at the casino cage below applicable threshold.

14.28.3 Purchase of coin and tokens at the casino cage below applicable threshold.

14.28.4 Redemption of coin and tokens at the casino cage below applicable threshold.

14.28.5 Exchange of notes for notes at the casino cage below applicable threshold.

15. In addition, it is intended to clarify in regulations that a person is not a financial institution just because they manage the means of payment through the provision of:

15.1 stored value instruments (including gift certificates and vouchers) underneath the applicable thresholds

15.2 any other bearer negotiable instruments underneath the applicable thresholds.

Submissions to the Cabinet Domestic Policy Committee describing these matters in more detail are available on the Ministry of Justice website

www.justice.govt.nz

Any person wishing to provide comment on these proposals should contact

Leeanne McAviney
International Criminal Law Team
Ministry of Justice
SX10088
Wellington.
Telephone: (04) 498 4285.
Email: leeanne.mcaviney@justice.govt.nz

Key to Annotation

1 All monetary values are described in New Zealand dollars.