Plain language law

New Zealand law explained for everyone

Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Customer due diligence - Reliance on third parties

32: Reliance on member of designated business group

You could also call this:

"Working with other businesses in your group to follow the law"

Illustration for Anti-Money Laundering and Countering Financing of Terrorism Act 2009

You are part of a group of businesses. You can rely on another business in your group to do some tasks. You can rely on them to check customers' identities and verify information. They must give you the identity information before you start working with a customer. You can also use another business's risk assessment if it is relevant to your business. You can make reports about suspicious activities on behalf of other businesses in your group. But you are still responsible for following the law. Your group is subject to section 36, which is about protecting personal information.

This text is automatically generated. It might be out of date or be missing some parts. Find out more about how we do this.

This page was last updated on

View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140877.

Topics:
Money and consumer rights > Consumer protectionBusiness > Industry rulesBusiness > Fair trading
Previous

31: Ongoing customer due diligence and account monitoring, or

"Keep checking customers are genuine by monitoring their accounts"

Next

33: Reliance on other reporting entities or persons in another country, or

"Trusting others to check customer details for anti-money laundering"

Part 2AML/CFT requirements and compliance
Customer due diligence: Reliance on third parties

32Reliance on member of designated business group

  1. A reporting entity (member A) that is a member of a designated business group may—

  2. rely on another member of the group (member B) to conduct any customer due diligence procedures required for customer due diligence under this Act or regulations as long as—
    1. any identity information is given to member A by member B before member A establishes a business relationship or an occasional transaction or activity is conducted; and
      1. any verification information is given to member A by member B as soon as practicable on request by the reporting entity, but within 5 working days of the request, after the business relationship is established or the occasional transaction or activity is conducted:
      2. adopt that part of an AML/CFT programme of another member of the group that relates to record keeping, account monitoring, ongoing customer due diligence, and annual reporting and share and use the procedures, policies, and controls relating to those parts of the programme subject to any conditions prescribed by regulations:
        1. use another member of the group's risk assessment if that risk assessment is relevant to member A's business:
          1. make a suspicious activity or prescribed transaction report on behalf of any other member or all members of the designated business group.

            1. A reporting entity (member A) that is a member of a designated business group may rely on another member of the group (member B) to make prescribed transaction reports under this Act or regulations.

            2. Despite subsection (1), a reporting entity, and not the member of the designated business group relied on by the reporting entity, is responsible for ensuring that it is complying with this Act and regulations.

            3. An AML/CFT supervisor for a reporting entity that is part of a designated business group may require the reporting entity to undertake its own risk assessment or develop its own AML/CFT programme if the AML/CFT supervisor is of the view that the risk assessment or AML/CFT programme being, or proposed to be, relied on by the reporting entity is not appropriate for that entity.

            4. This section is subject to section 36, which relates to the protection of personal information.

            Notes
            • Section 32(1)(a)(i): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 32(1)(a)(ii): amended, on , by section 21(1) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 32(1)(a)(ii): amended, on , by section 68 of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 32(1)(d): amended, on , by section 21(2) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).
            • Section 32(1A): inserted, on , by section 21(3) of the Anti-Money Laundering and Countering Financing of Terrorism Amendment Act 2017 (2017 No 35).