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Anti-Money Laundering and Countering Financing of Terrorism Act 2009

AML/CFT requirements and compliance - Codes of practice

67: Legal effect of codes of practice

You could also call this:

"What codes of practice mean for following the Anti-Money Laundering law"

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

You comply with the law by following a code of practice. This code says how to meet your obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act. You can also comply by using another method that is just as good. If you choose not to follow the code, you must tell the AML/CFT supervisor in writing first. You must say you want to use another method to meet your obligations. This is so you can defend yourself if someone says you did not comply. When a court decides if you broke the law, it looks at the code of practice. The court uses the code to see if you complied with the law at the time. This happens when you are charged with an offence or if someone asks the court to stop you from doing something. The court also looks at the code if someone asks for a fine against you. It checks the code to decide if you should get a fine for what you did. The court uses the code that was in force under section 64(6) at the relevant time.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM2140931.

Topics:
Money and consumer rights > Consumer protectionCrime and justice > Criminal law
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66: Proof of codes of practice, or

"Showing you followed the rules when creating a code of practice"

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67A: Prohibition on certain cash transactions, or

"No cash deals over a certain amount for valuable items like jewellery or cars."

Part 2AML/CFT requirements and compliance
Codes of practice

67Legal effect of codes of practice

  1. A reporting entity complies with an obligation imposed on it by or under this Act or regulations by—

  2. complying with those provisions of a code of practice that state a means of satisfying the obligation; or
    1. complying with the obligation by some other equally effective means.

      1. However, a reporting entity may not rely on subsection (1)(b) as a defence to an act or omission on its part unless it has, by notice in writing given before the act or omission occurred, advised the AML/CFT supervisor that it has opted out of compliance with the code of practice and intends to satisfy its obligations by some other equally effective means.

      2. If a person is charged with an offence in respect of a failure to comply with any provision of this Act, a court must, in determining whether that person has failed to comply with the provision, have regard to any code of practice in force under section 64(6) at the time of the alleged failure relating to matters of the kind to which the provision relates.

      3. If an application for an injunction against a person has been made under this Act, a court must, in determining whether to grant the injunction, have regard to any code of practice in force under section 64(6).

      4. If an application for a pecuniary penalty against a person has been made under this Act, a court must, in determining whether to impose a pecuniary penalty, have regard to any code of practice in force under section 64(6) at the time the person engaged in conduct that constituted the relevant civil liability act.