NEW ZEALAND GAZETTE, No. 18 — 26 FEBRUARY 2015

the Scheme which are subject to restrictions set out in the complying superannuation fund rules, provided
there is a cap on the amount of any non-payroll voluntary contributions made in each year. The cap should be
set at the amount (after taking into account any contribution through payroll) required to enable a member
to maximise, in respect of that year, those government contributions set out in section MK 4 of the Income
Tax Act 2007.

4. The trust deed of the Scheme may permit contributions to be made other than through payroll by a member
   to the 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 10–18 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 10–18 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.

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

a. The Scheme poses a very low risk of money laundering or terrorist financing;

b. any risks posed by voluntary contributions outside of payroll have been addressed by the conditions;

c. due to the very low money laundering and terrorist financing risks raised by the Scheme 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 by the associated costs; and

d. 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 Task Force and the Asia Pacific Group on Money Laundering.

8. This exemption came into force on the day after the date I granted this exemption (28 January 2015).

9. This exemption will expire on 30 June 2018.

Any person wishing to provide comment on these notices should contact the Criminal Law Team at the Ministry of
Justice: international.crime@justice.govt.nz

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