27 MARCH 2014 NEW ZEALAND GAZETTE, No. 33

2009 (“the Act”), the Minister of Justice hereby gives notice that she has granted the following exemptions from the AML/CFT Act:

Ministerial Exemption: Methodist Employment Generation Fund (Northern) Trust

1. As the Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), I exempt Methodist Employment Generation Fund (Northern) Trust (MEG) from the following provisions of the Act:

   (a) Section 11(1)(b);
   (b) sections 26–39;
   (c) section 49(3);
   (d) sections 50–91; and
   (e) sections 101–163.

2. This partial exemption has been made for the following reasons:

   (a) There is a low risk of money laundering and terrorist financing through MEG as:

   (i) MEG is a not-for-profit, registered charitable organisation that accepts deposits from the public to enable it to perform social lending by providing safe credit to low income people for a range of small businesses.

   (ii) MEG limits its lending to individuals and businesses it considers socially responsible.

   (iii) MEG offers defined and limited services to specific customers with robust internal processes that confirm the identity of the applicants and the purpose for which loans provided will be used.

   (iv) The management committee makes the final decision on all lending applications and retains control of the use of funds of the organisation for lending purposes.

   (v) MEG meets the criteria of a “lower risk” financial inclusion institution, under Financial Action Task Force guidelines, to be granted a partial exemption allowing it to apply simplified AML/CFT measures.

   (b) The obligations imposed on MEG would be disproportionate given the low risk of money laundering or terrorist financing in the circumstances outlined in this exemption.

3. This exemption comes into force on the day after the date I grant this exemption (18 March 2014).

4. This exemption will expire on 30 June 2018.

Ministerial Exemption: Dairy Industry and Fonterra Superannuation Schemes

1. In my capacity as the Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), I exempt the trustees of:

   (a) the Dairy Industry Superannuation Scheme;
   (b) the Fonterra Superannuation Scheme (collectively, “Schemes”); and
   (c) any person promoting or operating either Scheme on behalf of the trustees

   from Part 2 of the Act in relation to services provided in respect of the Schemes. In order to provide consistency and minimise risks of money-laundering, the specific provisions referred to below in paragraphs 2(c), 5 and 6 will still remain in force in relation to transfers to the Schemes from international sources or withdrawals from either Scheme in certain circumstances (as applicable).

2. This exemption is subject to the following conditions:

   (a) Subject to paragraphs 3 and 4, the trustees are required to remove any mechanisms contained in the trust deed for each of the Dairy Industry Superannuation Scheme and the Fonterra Superannuation Scheme that enable members to contribute to the relevant Scheme voluntarily other than through payroll. This includes the ability of the trustees to accept contributions in any form, in its or their absolute discretion.

   (b) The Schemes must remain registered superannuation schemes as defined under the Superannuation Schemes Act 1989, or registered schemes under the Financial Markets Conduct Act 2013, as applicable.

   (c) With the exception of Australian superannuation transfers to the Schemes (if applicable), Customer Due Diligence in accordance with sections 10–36 of the Act and suspicious transaction reports in accordance with sections 40–48 of the Act and, where the transaction is relevant to a suspicious transaction report, transaction records in accordance with section 49(1) and (2)(a)–(f) of the Act are required on all transfers to the Schemes from international sources.

3. The trust deed may permit voluntary contributions made other than through payroll to those sections of the Schemes which are subject to restrictions set out in the complying fund rules (as defined in section YA 1 of the Income Tax Act 2007), provided there is a cap on any non-payroll voluntary contribution. The cap should be set at the amount (after taking into account any contribution through payroll) required to enable a member to maximise those government contributions set out in section MK 4 of the Income Tax Act 2007.

4. The trust deed for each Scheme may permit contributions to be made other than through payroll by a member to the relevant Scheme during a permitted period of unpaid leave of absence (Regular Leave of Absence Contributions) where:

   (a) the employer or the Scheme’s administrator collects those contributions; and
   (b) the contributions do not exceed (as to either amount or frequency) the contributions that were being paid by the relevant member in accordance with the trust deed for the Scheme immediately prior to the member commencing leave of absence.

5. Where any Regular Leave of Absence Contributions are received from international sources during the permitted period of unpaid leave of absence, the following sections of the Act apply to such contributions:

   (a) Sections 10–17 of the Act (and for the purposes of section 14(d) of the Act, the receipt of a contribution from an international source is specified as a circumstance in which standard customer due diligence must be conducted);
   (b) sections 40–48 of the Act;
   (c) where the transaction is relevant to a suspicious transaction report, sections 49(1) and 2(a)–(f) of the Act; and
   (d) sections 92–100 of the Act.

6. Where any withdrawals are made by a member in addition to that member making Regular Leave of Absence Contributions during the permitted period of unpaid leave of absence the following sections of the Act apply to such withdrawals and contributions:

   (a) Sections 10–17 of the Act (and for the purposes of section 14(d) of the Act, the first such withdrawal is specified as a circumstance in which standard customer due diligence must be conducted);