Anti-Money Laundering and Countering Financing of Terrorism Act 2009

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

61: Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements

You could also call this:

"Make sure your overseas branches follow New Zealand's money laundering rules"

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

You have to make sure your branches and subsidiaries in other countries follow rules similar to New Zealand's Anti-Money Laundering and Countering Financing of Terrorism Act 2009. You must apply measures like customer checks, risk assessments, and record keeping, as long as the other country's law allows it. If the other country's law does not allow it, you must tell your supervisor and take extra steps to stop money laundering and terrorism funding. You need to tell your branches and subsidiaries outside New Zealand about the rules and processes you have in place to stop money laundering and terrorism funding. This helps them understand what they have to do to follow the rules. You have to make sure they know what to do to help keep everyone safe. If your branch or subsidiary is in a country that does not let them follow the same rules, you have to find other ways to manage the risks of money laundering and terrorism funding. This is to ensure you are doing everything you can to stop these crimes. You must work hard to prevent money laundering and terrorism funding, no matter where your branches and subsidiaries are located.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140919.


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

61Reporting entities to ensure that branches and subsidiaries comply with AML/CFT requirements

  1. A reporting entity must ensure that its branches and subsidiaries that are in a foreign country apply, to the extent permitted by the law of that country, measures broadly equivalent to those set out in this Act and regulations with regard to the requirements for customer due diligence (including ongoing customer due diligence), risk assessments, AML/CFT programmes, and record keeping.

  2. If the law of the foreign country does not permit the application of those equivalent measures by the branch or the subsidiary located in that country, the reporting entity must—

  3. inform its AML/CFT supervisor accordingly; and
    1. take additional measures to effectively handle the risk of a money laundering offence and the financing of terrorism.
      1. A reporting entity must communicate (where relevant) the policies, procedures, and controls that it establishes, implements, and maintains in accordance with this subpart to its branches and subsidiaries that are outside New Zealand.