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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Compliance with AML/CFT requirements

58: Risk assessment

You could also call this:

"Figuring out money laundering risks for your business"

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

You need to do a risk assessment before you start checking customers or making an AML/CFT programme. This assessment looks at the risk of money laundering and financing terrorism that you might face in your business. You have to think about your business and how it works. You must consider things like the type of business you have, the products and services you offer, and how you deliver them to customers. You also need to think about the types of customers you deal with, the countries you work with, and the institutions you work with. You should look at any guidance material that AML/CFT supervisors or the Commissioner have produced to help with risk assessments. Your risk assessment must be written down and it must identify the risks you face in your business. It must also describe how you will keep the assessment up to date and help you decide the level of risk involved in your business. This will help you follow the rules in the Anti-Money Laundering and Countering Financing of Terrorism Act 2009.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140915.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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"Rules to Help Stop Money Laundering and Terrorism Financing"

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Part 2AML/CFT requirements and compliance
Compliance with AML/CFT requirements

58Risk assessment

  1. Before conducting customer due diligence or establishing an AML/CFT programme, a reporting entity must first undertake an assessment of the risk of money laundering and the financing of terrorism (a risk assessment) that it may reasonably expect to face in the course of its business.

  2. In assessing the risk, the reporting entity must have regard to the following:

  3. the nature, size, and complexity of its business; and
    1. the products and services it offers; and
      1. the methods by which it delivers products and services to its customers; and
        1. the types of customers it deals with; and
          1. the countries it deals with; and
            1. the institutions it deals with; and
              1. any applicable guidance material produced by AML/CFT supervisors or the Commissioner relating to risk assessments; and
                1. any other factors that may be provided for in regulations.

                  1. The risk assessment must be in writing and—

                  2. identify the risks faced by the reporting entity in the course of its business; and
                    1. describe how the reporting entity will ensure that the assessment remains current; and
                      1. enable the reporting entity to determine the level of risk involved in relation to relevant obligations under this Act and regulations.