NEW ZEALAND GAZETTE, No. 33 27 MARCH 2014

(b) sections 40–48 of the Act;

(c) where the transaction is relevant to a suspicious transaction report, section 49(1) and (2)(a)–(f) of the Act; and

(d) sections 92–100 of the Act.

7. The exemption has been granted for the following reasons:

(a) The trustees’ only duties as reporting entities under the Act are in respect of the Schemes;

(b) the Schemes pose a very low risk of money laundering or terrorism financing;

(c) any risks posed by voluntary contributions outside of payroll have been addressed by the conditions;

(d) due to the very low money laundering and terrorism financing risks raised by the Schemes and the significant compliance costs that would arise from not granting this exemption, I consider that any benefits of requiring compliance with the Act are not justified given the associated costs; and

(e) this exemption is consistent with (and has no effect on the purpose or intent of) the Act, the Financial Transactions Reporting Act 1996 and New Zealand’s international obligations as a member of the Financial Action Taskforce and the Asia Pacific Group on Money Laundering.

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

9. This exemption will expire on 30 June 2018.

Ministerial Exemption: First State Investment (NZ) Limited

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 First State Investment (NZ) Limited (FSINZL) from section 56(2) of the Act in so far as the AML/CFT compliance officer must be an employee of the reporting entity. The exemption is made in this case to allow the AML/CFT compliance officer to be an employee of an Australian entity that is a member of the Commonwealth Bank of Australia group of entities ("CBA Group").

2. The AML/CFT compliance officer should maintain a strong relationship with FSINZL’s senior management and have a clear reporting line to FSINZL’s board. New Zealand staff should have access to the Australian-based officer in order to report suspicious circumstances that may arise, and ensure that the AML/CFT compliance officer maintains appropriate qualifications and knowledge, and proper access to key information and adequate resources.

3. This exemption has been granted as there are low risks of money laundering and terrorist financing associated with this specific exemption, and it will allow FSINZL to use the CBA Group’s existing AML/CFT compliance expertise.

4. All other provisions of the Act apply. I particularly draw attention to section 56(4) of the Act which states "The AML/CFT compliance officer must report to a senior manager of the reporting entity".

5. This exemption may be applied to successor(s) to the current AML/CFT compliance officer.

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

7. This exemption will expire on 30 June 2018, and/or if the conditions of the exemption are breached.

Ministerial Exemption Form: Quaker Investments Ethical 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 Quaker Investments Ethical Trust ("Trust") from the following provisions of this Act:

(a) Section 11(1)(b);

(b) sections 26–39;

(c) section 49(3); and

(d) sections 50–71.

2. However, for the following transactions, section 11(1)(b) applies:

(a) Wire transfers that are not domestic wire transfers as defined under section 5 of the Act; and

(b) Any transaction or occasional transaction as defined under section 5 of the Act that is between the Trust and any individual, person, government agency or any type of institution not in New Zealand.

3. This exemption has been made for the following reasons:

(a) There are lower risks of money laundering and terrorist financing through the Trust as:

(i) The Trust has four types of loans, each of which has a specific maximum amount and may only be provided in certain circumstances; for example where a person would not otherwise be able to secure conventional financing or afford commercial interest rates;

(ii) the Trust does not engage in or encourage overseas lending;

(iii) there are no new overseas depositors, and at the moment there are [REDACTED] overseas depositors;

(iv) most depositors in the Trust are long-term investors and are known to the trustees;

(v) the trustees make the final decision on all lending applications and retain control of the use of the funds of the organisation for lending purposes;

(vi) the Trust already carries out a limited form of customer identification on loan applicants.

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

4. If any additional information is received by an AML/CFT supervisor that raises concern of money laundering or terrorist financing, the exemption may be revisited.

5. This exemption will come into force on the day after the date I grant this exemption (18 March 2014).

6. This exemption will expire on 30 June 2018.

Ministerial Exemption: Nelson Enterprise Loan 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 Nelson Enterprise Loan Trust (NELT) 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 Nelson Enterprise Loan Trust as: