NEW ZEALAND GAZETTE, No. 73 — 13 JULY 2017

b. the ADW only conducts transactions with other Church entities within the Diocese. When entities provide services for a related entity (which is effectively part of itself), there is low money laundering and financing of terrorism risk;

c. the Roman Catholic Archdiocese of Wellington cannot rely on Regulation 16 of the Anti-Money Laundering and Countering Financing of Terrorism (Exemptions) Regulations 2011 because the Church entities are not all bodies corporate and therefore not related within the meaning of section 12(2) of the Financial Markets Conduct Act 2013 as required by Regulation 16;

d. ADW only operates in New Zealand and does not conduct transactions or activities in overseas regions, which exposes it to money laundering and terrorist activity;

e. the ADW, through the CDF, generates income from the earnings of its reserves, any grants received, and through donations and bequests. Donations and grants cannot be returned to their original donors, unless they are subject to restrictions. The ADW no longer accepts any deposits from the public; and

f. due to the low money laundering and terrorism financing risk associated with the ADW and the significant compliance costs to ADW 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.

5. This exemption comes into force on the day after the date I grant this exemption.

6. This exemption will expire on 30 June 2020.

Any person wishing to provide comment on this notice should contact the Criminal Law Team at the Ministry of Justice by emailing international.crime@justice.govt.nz.

2017-go3494

Ministerial Exemptions Under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009

In accordance with section 157(6)(b) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), the Associate Minister of Justice hereby gives notice that he has granted the following exemption from the Act:

Ministerial Exemption: Hallmark Life Insurance Company Ltd and Hallmark General Insurance Company Ltd.

1. As the Associate Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), I exempt Hallmark Life Insurance Company Ltd and Hallmark General Insurance Company Ltd from the following provisions of the Act:

A. Sections 10–71 inclusive.

2. This exemption is made subject to the following conditions:

a. The entity granted the exemption must inform the Ministry of Justice of any changes that may affect the exemption and/or conditions imposed by this written instrument within 14 days from when the change affecting the exemption occurs.

b. This exemption only applies to the following financial activity offered by the Hallmark entities:

i. Consumer Life Policies.

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

a. The loans to which these consumer life policies relate will have been checked and verified from an anti-money laundering perspective by the underlying credit providers.

b. According to international findings, consumer life policies are considered to be lower risk products for money laundering and terrorist financing.

c. The compliance burden to which both entities would be subjected if this exemption was not granted would be disproportionate to the money laundering and terrorist financing risks involved in the products offered.

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