5Interpretation

1. In this Act, unless the context otherwise requires,—

   accounting practice means—

   1. an accountant in public practice on his or her own account in sole practice:
   2. in relation to 2 or more accountants in public practice, and practising in partnership, the partnership:
   3. an incorporated accounting practice

   AML/CFT means anti-money laundering and countering the financing of terrorism

   AML/CFT programme means a compliance programme established under section 56(1)

   AML/CFT requirements means the requirements set out in Part 2

   AML/CFT supervisor, in relation to a reporting entity, means the person referred to in section 130(1) that is responsible for supervising the reporting entity under Parts 3 and 4

   applicable threshold value means the threshold value that—

   1. is prescribed in regulations; and
   2. applies to a particular person, class of persons, transaction, class of transactions, financial activity, or class of financial activities prescribed in regulations

   approved entity means an entity—

   1. that is prescribed by regulations as an approved entity; or
   2. that comes within a class of entities prescribed by regulations as a class of approved entities

   bearer-negotiable instrument means—

   1. a bill of exchange; or
   2. a cheque; or
   3. a promissory note; or
   4. a bearer bond; or
   5. a traveller’s cheque; or
   6. a money order, postal order, or similar order; or
   7. any other instrument prescribed by regulations

   beneficial owner means the individual who—

   1. has effective control of a customer or person on whose behalf a transaction is conducted; or
   2. owns a prescribed threshold of the customer or person on whose behalf a transaction is conducted

   beneficiary institution, in relation to a wire transfer from an ordering institution, means any person who receives those funds and then makes those funds available to a person (the payee) by—

   1. crediting it to an account held by the payee; or
   2. paying it to the payee

   business relationship means a business, professional, or commercial relationship between a reporting entity and a customer that has an element of duration or that is expected by the reporting entity, at the time when contact is established, to have an element of duration

   cash means—

   1. physical currency:
   2. bearer-negotiable instruments

   cash report means a report made under subpart 6 of Part 2

   casino means the holder of a casino operator’s licence under the Gambling Act 2003

   chief executive means the chief executive of the Ministry

   civil liability act has the meaning set out in section 78

   code of practice and proposed code of practice have the meanings set out in section 62

   Commissioner means the Commissioner of Police

   constable has the same meaning as in section 4 of the Policing Act 2008

   conveyancing practitioner has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006

   correspondent banking relationship has the meaning set out in section 29(3)

   country includes any State, territory, province, or other part of a country

   customer—

   1. means a new customer or an existing customer; and
   2. includes—
      1. a facility holder:
      2. a person conducting or seeking to conduct an occasional transaction or activity through a reporting entity:
      3. a junket organiser as defined in section 4(1) of the Gambling Act 2003:
      4. a person or class of persons declared by regulations to be a customer for the purposes of this Act; but
   3. excludes a person or class of persons that is declared by regulations not to be a customer for the purposes of this Act

   Customs officer has the same meaning as in section 5(1) of the Customs and Excise Act 2018

   designated business group means a group of 2 or more persons in which—

   1. each member of the group has elected, in writing, to be a member of the group and the election is in force; and
   2. each election was made in accordance with regulations (if any); and
   3. no member of the group is a member of another designated business group; and
   4. each member of the group is—
      1. related to each other member of the group within the meaning of section 2(3) of the Companies Act 1993 and is—
         1. a reporting entity resident in New Zealand; or
         2. a person that is resident in a country that has sufficient AML/CFT systems and is supervised or regulated for AML/CFT purposes; or
      2. providing a service under a joint venture agreement to which each member of the group is a party; or
      3. a public service agency as defined in section 5 of the Public Service Act 2020, a State enterprise under the State-Owned Enterprises Act 1986, or a Crown entity under section 7 of the Crown Entities Act 2004; or
      4. related to 1 or more of the entities referred to in subparagraph (iii) through the provision of common products or services; or
      5. a body corporate that is—
         1. either a company (within the meaning of section 2(1) of the Companies Act 1993) or an overseas company within the meaning of that section; and
         2. related (within the meaning of section 12(2) of the Financial Markets Conduct Act 2013) to every body corporate in the designated business group or proposed designated business group; and
         3. either a reporting entity resident in New Zealand or a person who is resident in a country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes; or
      6. a related law firm, or a subsidiary of a law firm, that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes); or
      7. a related conveyancer, or a subsidiary of a conveyancer, that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes); or
      8. a related accounting practice, or a subsidiary of an accounting practice, that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes); or
      9. a related trust and company service provider, or a subsidiary of a trust and company service provider, that is a reporting entity in New Zealand (or the equivalent body in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes); or
      10. a related real estate agent, or a subsidiary of a real estate agent, that is a reporting entity in New Zealand (or the equivalent in another country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes); or
      11. a related high-value dealer, or a subsidiary of a high-value dealer, that is a reporting entity in New Zealand (or an equivalent person resident outside New Zealand in a country that has sufficient AML/CFT systems and that is supervised or regulated for AML/CFT purposes); or
      12. a group of reporting entities, if the entities are each money transfer agents or sub-agents and each entity is related to every other entity in the designated business group or proposed designated business group in either of the following ways:
          1. one of those entities is a money transfer agent and the other entities are the sub-agents of those agents:
          2. those entities are each sub-agents of the same money transfer agent; or
      13. an entity or a class of entities prescribed by regulations; and
   5. each member of the group satisfies any conditions in subsection (3) that apply to that member

   designated non-financial business or profession means—

   1. a law firm, a conveyancing practitioner, an incorporated conveyancing firm, an accounting practice, a real estate agent, or a trust and company service provider, who, in the ordinary course of business, carries out 1 or more of the following activities:
      1. acting as a formation agent of legal persons or legal arrangements:
      2. acting as, or arranging for a person to act as, a nominee director or nominee shareholder or trustee in relation to legal persons or legal arrangements:
      3. providing a registered office or a business address, a correspondence address, or an administrative address for a company, or a partnership, or for any other legal person or arrangement, unless the office or address is provided solely as an ancillary service to the provision of other services (being services that do not constitute an activity listed in this subparagraph or subparagraphs (i), (ii), and (iv) to (vi)):
      4. managing client funds (other than sums paid as fees for professional services), accounts, securities, or other assets:
      5. providing real estate agency work (within the meaning of section 4(1) of the Real Estate Agents Act 2008) to effect a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008):
      6. engaging in or giving instructions on behalf of a customer to another person for—
         1. any conveyancing (within the meaning of section 6 of the Lawyers and Conveyancers Act 2006) to effect a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008), namely,—
         2. a transaction (within the meaning of section 4(1) of the Real Estate Agents Act 2008); or
         3. the transfer of a beneficial interest in land or other real property; or
         4. a transaction on behalf of any person in relation to the buying, transferring, or selling of a business or legal person (for example, a company) and any other legal arrangement; or
         5. a transaction on behalf of a customer in relation to creating, operating, and managing a legal person (for example, a company) and any other legal arrangement; and
   2. includes a person or class of persons declared by regulations to be a designated non-financial business or profession for the purposes of this Act; but
   3. excludes a person or class of persons declared by regulations not to be a designated non-financial business or profession for the purposes of this Act

   domestic physical cash transaction means a transaction in New Zealand involving the use of physical currency

   domestic wire transfer has the meaning set out in section 27(7)

   existing customer, in relation to a reporting entity, means a person who was in a business relationship with the reporting entity immediately before any provisions of this Act began to apply to the reporting entity

   facility—

   1. means any account or arrangement—
      1. that is provided by a reporting entity; and
      2. through which a facility holder may conduct 2 or more transactions; and
   2. without limiting paragraph (a), includes—
      1. a life insurance policy:
      2. membership of a superannuation scheme, workplace savings scheme, or KiwiSaver scheme:
      3. the provision, by a reporting entity, of facilities for safe custody, including (without limitation) a safety deposit box:
      4. an account or arrangement declared by regulations to be a facility for the purposes of this Act; but
   3. excludes an account or arrangement declared by regulations not to be a facility for the purposes of this Act

   facility holder, in relation to a facility,—

   1. means the person in whose name the facility is established; or
   2. if that facility is a life insurance policy, means any person who for the time being is the legal holder of that policy; or
   3. if that facility consists of membership of a superannuation scheme, workplace savings scheme, or KiwiSaver scheme, means the product holder of the managed investment product in the scheme (within the meanings of product holder and managed investment product in section 6(1) of the Financial Markets Conduct Act 2013)

   financial institution—

   1. means a person who, in the ordinary course of business, carries on 1 or more of the following financial activities:
      1. accepting deposits or other repayable funds from the public:
      2. lending to or for a customer, including consumer credit, mortgage credit, factoring (with or without recourse), and financing of commercial transactions (including forfeiting):
      3. financial leasing (excluding financial leasing arrangements in relation to consumer products):
      4. transferring money or value for, or on behalf of, a customer:
      5. issuing or managing the means of payment (for example, credit or debit cards, cheques, traveller’s cheques, money orders, bankers’ drafts, or electronic money):
      6. undertaking financial guarantees and commitments:
      7. trading for, or on behalf of, a customer in any of the following using the person’s account or the customer’s account:
         1. money market instruments (for example, cheques, bills, certificates of deposit, or derivatives):
         2. foreign exchange:
         3. exchange, interest rate, or index instruments:
         4. transferable securities:
         5. commodity futures trading:
      8. participating in securities issues and the provision of financial services related to those issues:
      9. managing individual or collective portfolios:
      10. safe keeping or administering of cash or liquid securities on behalf of other persons:
      11. investing, administering, or managing funds or money on behalf of other persons:
      12. issuing, or undertaking liability under, life insurance policies as an insurer:
      13. money or currency changing; and
   2. includes a person or class of persons declared by regulations to be a financial institution for the purposes of this Act; but
   3. excludes a person or class of persons declared by regulations not to be a financial institution for the purposes of this Act

   financing of terrorism has the same meaning as in section 4(1) of the Terrorism Suppression Act 2002

   gambling inspector has the same meaning as in section 4(1) of the Gambling Act 2003

   government agency means—

   1. a public service agency as defined in section 5 of the Public Service Act 2020; or
   2. a Crown entity under section 7 of the Crown Entities Act 2004; or
   3. the Reserve Bank, the Parliamentary Counsel Office, and the New Zealand Police; or
   4. any overseas country's counterpart of any of the entities in paragraphs (a) to (c)

   high-value dealer—

   1. means a person who is in trade and in the ordinary course of business, buys or sells all or any of the following articles by way of a cash transaction or a series of related cash transactions, if the total value of that transaction or those transactions is equal to or above the applicable threshold value:
      1. jewellery:
      2. watches:
      3. gold, silver, or other precious metals:
      4. diamonds, sapphires, or other precious stones:
      5. paintings:
      6. prints:
      7. protected foreign objects (within the meaning of section 2(1) of the Protected Objects Act 1975):
      8. protected New Zealand objects (within the meaning of section 2(1) of the Protected Objects Act 1975):
      9. sculptures:
      10. photographs:
      11. carvings in any medium:
      12. other artistic or cultural artefacts:
      13. motor vehicles (within the meaning of section 6(1) of the Motor Vehicle Sales Act 2003):
      14. ships (within the meaning of section 2(1) of the Maritime Transport Act 1994); and
   2. includes any person who carries out the activities referred to in paragraph (a) as a registered auctioneer (within the meaning of section 4(1) of the Auctioneers Act 2013); but
   3. does not include any person, to the extent that the person is engaged in providing services other than the buying or selling of articles referred to in paragraph (a), including the following services:
      1. mining precious metals or precious stones:
      2. manufacturing jewellery:
      3. crafting or polishing precious stones; and
   4. does not include any person to the extent that the person is engaged in the buying or selling of precious metals or precious stones for industrial purposes

   identity information means information obtained under sections 15, 19, 23, and 27(1) and (2) and any other information relating to identity prescribed by sections 29(2)(g) and 30(b)

   incorporated conveyancing firm has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006

   incorporated law firm has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006

   individual means a natural person, other than a deceased natural person

   intermediary institution, in relation to a wire transfer, is a person that participates in a transfer of funds that takes place through more than 1 institution but is not an ordering institution or a beneficiary institution

   international wire transfer means a wire transfer where—

   1. at least 1 of the following institutions is in New Zealand:
      1. the ordering institution:
      2. the intermediary institution:
      3. the beneficiary institution; and
   2. at least 1 of the following institutions is outside New Zealand:
      1. the ordering institution:
      2. the intermediary institution:
      3. the beneficiary institution

   KiwiSaver scheme has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

   law enforcement purposes means—

   1. the prevention, disruption, detection, investigation, and prosecution of—
      1. any offence under this Act; or
      2. a money laundering offence; or
      3. any offence within the meaning of that term in section 243(1) of the Crimes Act 1961; or
      4. an offence under the Terrorism Suppression Act 2002:
   2. the enforcement and administration of—
      1. this Act:
      2. the Criminal Proceeds (Recovery) Act 2009:
      3. the Misuse of Drugs Act 1975:
      4. the Terrorism Suppression Act 2002:
      5. the Mutual Assistance in Criminal Matters Act 1992:
      6. the Customs and Excise Act 2018:
      7. the Russia Sanctions Act 2022:
   3. the performance by the New Zealand Security Intelligence Service or the Government Communications Security Bureau of its functions under the Intelligence and Security Act 2017:
   4. the detection and prevention of the harms specified in section 58(2) of the Intelligence and Security Act 2017:
   5. any purpose or action referred to in paragraphs (a) to (d) relating to, or taken in respect of, legislation of an overseas jurisdiction that is broadly equivalent to the enactments referred to in those paragraphs

   law firm means—

   1. a barrister or a barrister and solicitor who is practising on the barrister’s or barrister and solicitor’s own account in sole practice:
   2. in relation to 2 or more barristers and solicitors practising law in partnership, the partnership:
   3. an incorporated law firm

   lawyer has the meaning given to it by section 6 of the Lawyers and Conveyancers Act 2006

   legal arrangement means—

   1. a trust:
   2. a partnership:
   3. a charitable entity (within the meaning of section 4(1) of the Charities Act 2005):
   4. any other prescribed arrangement (being an arrangement that involves a risk of money laundering or the financing of terrorism)

   life insurance policy means a life policy within the meaning of section 6(1) of the Insurance (Prudential Supervision) Act 2010

   Minister means the Minister who is, with the authority of the Prime Minister, for the time being responsible for the administration of this Act

   Ministry means the department of State that, with the authority of the Prime Minister, is for the time being responsible for the administration of this Act

   money laundering offence means an offence against section 243 of the Crimes Act 1961 or section 12B of the Misuse of Drugs Act 1975 or any act committed overseas that, if committed in New Zealand, would be an offence under those sections of those Acts

   non-bank deposit taker has the meaning given to NBDT by section 5 of the Non-bank Deposit Takers Act 2013

   occasional activity—

   1. means an activity—
      1. that is specified in section 6(4) in relation to a reporting entity (other than an occasional transaction); and
      2. that does not involve a business relationship between the reporting entity and the reporting entity’s customer; and
   2. includes an activity or a class of activities declared by regulations to be an occasional activity for the purposes of this Act; but
   3. excludes an activity or a class of activities declared by regulations not to be an occasional activity for the purposes of this Act

   occasional transaction—

   1. means a cash transaction that occurs outside of a business relationship and is equal to or above the applicable threshold value (whether the transaction is carried out in a single operation or several operations that appear to be linked); and
   2. includes a transaction or class of transactions declared by regulations to be an occasional transaction for the purposes of this Act; but
   3. excludes—
      1. cheque deposits made at a registered bank or non-bank deposit taker; and
      2. a transaction or class of transactions declared by regulations not to be an occasional transaction for the purposes of this Act

   occasional transaction or activity means—

   1. an occasional transaction:
   2. an occasional activity

   ordering institution—

   1. means any person who has been instructed by a person (the payer) to electronically transfer funds controlled by the payer to a person (the payee) who may or may not be the payer on the basis that the transferred funds will be made available to the payee by a beneficiary institution; and
   2. includes a person declared by regulations to be an ordering institution for the purposes of this Act; but
   3. excludes a person or class of persons declared by regulations not to be an ordering institution for the purposes of this Act

   physical currency means the coin and printed money (whether of New Zealand or of a foreign country) that—

   1. is designated as legal tender; and
   2. circulates as, and is customarily used and accepted as, a medium of exchange in the country of issue

   Police employee has the same meaning as in section 4 of the Policing Act 2008

   politically exposed person means—

   1. an individual who holds, or has held at any time in the preceding 12 months, in any overseas country the prominent public function of—
      1. Head of State or head of a country or government; or
      2. government minister or equivalent senior politician; or
      3. Supreme Court Judge or equivalent senior Judge; or
      4. governor of a central bank or any other position that has comparable influence to the Governor of the Reserve Bank of New Zealand; or
      5. senior foreign representative, ambassador, or high commissioner; or
      6. high-ranking member of the armed forces; or
      7. board chair, chief executive, or chief financial officer of, or any other position that has comparable influence in, any State enterprise; and
   2. an immediate family member of a person referred to in paragraph (a), including—
      1. a spouse; or
      2. a partner, being a person who is considered by the relevant national law as equivalent to a spouse; or
      3. a child and a child's spouse or partner; or
      4. a parent; and
   3. having regard to information that is public or readily available,—
      1. any individual who is known to have joint beneficial ownership of a legal entity or legal arrangement, or any other close relationship, with a person referred to in paragraph (a); or
      2. any individual who has sole beneficial ownership of a legal entity or legal arrangement that is known to exist for the benefit of a person described in paragraph (a)

   prescribed transaction, in relation to a reporting entity, means a transaction conducted through the reporting entity in respect of—

   1. an international wire transfer of a value equal to or above the applicable threshold value; or
   2. a domestic physical cash transaction of a value equal to or above the applicable threshold value

   prescribed transaction report means a report made under section 48A

   privileged communication has the meaning set out in section 42

   real estate agency work has the same meaning as in the definition of that term in section 4(1) of the Real Estate Agents Act 2008

   real estate agent has the same meaning as the definition of agent in section 4(1) of the Real Estate Agents Act 2008

   registered bank has the same meaning as in section 2(1) of the Banking (Prudential Supervision) Act 1989

   regulations means regulations made under this Act

   regulator—

   1. means a professional body responsible under any New Zealand enactment for enforcing the regulatory obligations of a particular industry or profession whose members are subject to this Act; and
   2. includes any other body prescribed in regulations

   reporting entity—

   1. means—
      1. a casino:
      2. a designated non-financial business or profession:
      3. a financial institution:
      4. a high-value dealer:
      5. TAB NZ; and
   2. includes—
      1. a person or class of persons declared by regulations to be a reporting entity for the purposes of this Act; and
      2. any other person that is required by any enactment to comply with this Act as if it were a reporting entity; but
   3. excludes a person or class of persons declared by regulations not to be a reporting entity for the purposes of this Act

   search warrant means a warrant issued under section 117

   senior manager (and senior management correspondingly) means,—

   1. in relation to a reporting entity that is a company, a director within the meaning of section 126 of the Companies Act 1993; and
   2. in relation to a reporting entity that is not a company, a person who occupies a position comparable to that of a director (for example, a trustee or partner); and
   3. any other person who occupies a position within a reporting entity that allows that person to exercise an influence over the management or administration of the reporting entity (for example, a chief executive or a chief financial officer)

   shell bank has the meaning set out in section 39(2)

   superannuation scheme has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

   suspicious activity report—

   1. means a report made under section 40:
   2. includes—
      1. a suspicious transaction report made under this Act; and
      2. a suspicious transaction report made under the Financial Transactions Reporting Act 1996

   suspicious property report has the same meaning as in section 4(1) of the Terrorism Suppression Act 2002

   transaction—

   1. means any deposit, withdrawal, exchange, or transfer of funds (in any denominated currency), whether—
      1. in cash; or
      2. by cheque, payment order, or other instrument; or
      3. by electronic or other non-physical means; and
   2. without limiting paragraph (a), includes—
      1. any payment made in satisfaction, in whole or in part, of any contractual or other legal obligation; and
      2. a transaction or class of transactions declared by regulations to be a transaction for the purposes of this Act; but
   3. excludes the following:
      1. the placing of any bet unless authorised under the Racing Industry Act 2020:
      2. participation in gambling (as defined in section 4(1) of the Gambling Act 2003) unless authorised under the Racing Industry Act 2020:
      3. a transaction or class of transactions declared by regulations not to be a transaction for the purposes of this Act

   trust and company service provider means a person (other than a law firm, a conveyancing practitioner, an incorporated conveyancing firm, an accounting practice, or a real estate agent) who carries out any of the activities described in paragraphs (a)(i) to (vi) of the definition of designated non-financial business or profession

   trustee has the same meaning as in section 9 of the Trusts Act 2019

   verification information means information obtained under sections 16, 20, 24, and 28

   wire transfer—

   1. means a transaction carried out on behalf of a person (the originator) through a reporting entity by electronic means with a view to making an amount of money available to a beneficiary (who may also be the originator) at another reporting entity; and
   2. includes a transfer or transaction, or class of transfers or transactions, declared by regulations to be a wire transfer for the purposes of this Act; but
   3. excludes—
      1. transfers and settlements between financial institutions or other reporting entities if both the originator and the beneficiary are financial institutions or other reporting entities acting on their own behalf; and
      2. credit and debit card transactions if the credit or debit card number accompanies the transaction; and
      3. any other transfer or transaction or class of transfers or transactions declared by regulations not to be a wire transfer for the purposes of this Act.

   workplace savings scheme has the same meaning as in section 6(1) of the Financial Markets Conduct Act 2013

2. For the purposes of paragraph (d)(xii) of the definition of designated business group in subsection (1),—

   money transfer agent, in relation to a money transfer provider, means a reporting entity that has a representation agreement with a money transfer provider

   money transfer provider means a person who, under a representation agreement, authorises a money transfer agent to carry on money transfer services on behalf of the money transfer provider and to engage sub-agents for the purpose of carrying on those services in New Zealand

   money transfer services means the provision of remittance services that are carried on, otherwise than by a bank, under a single brand, trade mark, or business name

   representation agreement means a written agreement between a money transfer provider and a money transfer agent, or between a money transfer agent and a sub-agent, that states the terms on which the money transfer agent, or the sub-agent, carries on money transactions for customers relating to creating, operating, and managing companies

   sub-agent means a reporting entity that has a representation agreement with a money transfer agent.

3. For the purposes of paragraph (e) of the definition of designated business group in subsection (1), a condition of membership is that the contact person of a designated business group must notify the relevant AML/CFT supervisor, in writing within 30 days, of any of the following:

4. the withdrawal of a member from the designated business group:
5. the termination of the designated business group:
6. any other change in the details previously notified to any AML/CFT supervisor in respect of the designated business group.

7. For the purpose of applying the definitions of designated non-financial business or profession and designated business group, a reporting entity must take into account guidance (if any) on the application of those definitions issued by the relevant AML/CFT supervisor.