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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Codes of practice

63: AML/CFT supervisors to prepare codes of practice for relevant sectors

You could also call this:

"Rules to help businesses follow anti-money laundering laws"

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

You need to know that the Minister can tell an AML/CFT supervisor to prepare codes of practice. These codes help businesses follow the rules under the Anti-Money Laundering and Countering Financing of Terrorism Act. The Minister can ask for codes that cover all the rules or just some of them. The AML/CFT supervisor must do what the Minister asks as soon as possible. They prepare codes to help businesses understand what they need to do. The codes do not have legal effect until the Minister approves them under section 64(6). The Minister can give directions about what to include in the codes. They can specify which rules to cover and when to provide the codes. The AML/CFT supervisor must follow these directions and provide recommendations as required under section 64(1)(a). The purpose of the codes is to assist businesses in following the rules. The codes are meant to provide guidance and help businesses comply with their obligations. The Minister's approval is necessary for the codes to have legal effect, as stated in section 130 and section 64(1)(a) and section 64(6).

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140926.

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Money and consumer rights > Banking and loansBusiness > Industry rules
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64: Procedure for approval and publication of codes of practice, or

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Part 2AML/CFT requirements and compliance
Codes of practice

63AML/CFT supervisors to prepare codes of practice for relevant sectors

  1. An AML/CFT supervisor must, if directed to do so by the Minister responsible for that AML/CFT supervisor (the responsible Minister), prepare—

  2. 1 or more codes of practice for the sector of activity of the reporting entities for which it is the supervisor under section 130 or in respect of different reporting entities specified by the responsible Minister:
    1. an instrument that amends a code of practice or revokes the whole or any provision of a code of practice prepared under paragraph (a).

      1. The purpose of a code of practice is to provide a statement of practice that assists reporting entities to comply with their obligations under this Act and regulations.

      2. A direction under subsection (1) may (without limitation)—

      3. relate generally to the obligations imposed on the relevant reporting entities by or under this Act or regulations or specify particular aspects of those obligations that are to be covered by the code of practice:
        1. specify the amendments to be made or their intended effect, and specify the extent of the revocation to be made:
          1. indicate the date by which the responsible Minister wishes the code of practice to be provided to him or her:
            1. include details about the recommendation that the AML/CFT supervisor is required to provide under section 64(1)(a).

              1. An AML/CFT supervisor must comply with a direction under subsection (1) as soon as practicable.

              2. No code of practice has legal effect until approved by the responsible Minister under section 64(6).