Anti-Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and Other Matters) Amendment Bill

Anti-Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and Other Matters) Amendment Bill The Parliament of New Zealand enacts as follows: 1 Title This Act is the Anti-Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and Other Matters) Amendment Act 2025 . 2 Commencement This Act comes into force on 1 July 2026 . 3 Principal Act This Act amends the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. 4 Section 4 amended (Overview) In section 4(3)(e), replace AML/CFT supervisors with the AML/CFT supervisor . In section 4(5)(a), replace that identify the AML/CFT supervisors and their functions, powers, and ability to delegate supervisory functions; with that set out the functions and powers of the AML/CFT supervisor and its ability to delegate supervisory functions; . Replace section 4(5)(b) with: b subpart 2 includes regulation-making powers, rule-making powers, and provisions relating to exemptions from the requirements of the Act. 5 Section 5 amended (Interpretation) In section 5(1), insert in their appropriate alphabetical order: national strategy means the national strategy adopted in accordance with section 149A public service agency has the meaning given to it by section 5 of the Public Service Act 2020 rules means rules made under this Act work programme means the regulatory work programme adopted in accordance with section 149D In section 5(1), definition of AML/CFT requirements , after Part 2 , insert and regulations, rules, and notices made under this Act . In section 5(1), replace the definition of AML/CFT supervisor with: AML/CFT supervisor means the public service agency that, with the authority of the Prime Minister, is for the time being responsible for supervising reporting entities under this Act In section 5(1), definition of applicable threshold value , replace regulations with regulations made under section 153 or 154 or by notice under section 156D in each place. In section 5(1), definition of approved entity , replace regulations with notice made under section 156F in each place. In section 5(1), definition of bearer-negotiable instrument , paragraph (g), replace regulations with rules made under section 156B . In section 5(1), replace the definition of code of practice and proposed code of practice with: code of practice means a code of practice made under section 64 In section 5(1), definition of customer , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of designated business group ,— a paragraph (b), replace regulations (if any) with requirements (if any) prescribed by notice under section 156F ; and b paragraph (d)(xiii), replace regulations with notice under section 156F . In section 5(1), definition of designated non-financial business or profession , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of facility , replace regulations with notice under section 156F in each place. In section 5(1), definition of financial institution , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of legal arrangement , replace prescribed arrangement with arrangement declared by regulations made under section 154 or by notice under section 156F . In section 5(1), definition of occasional activity , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of occasional transaction , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of ordering institution , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of reporting entity , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of transaction , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(1), definition of wire transfer , replace regulations with regulations made under section 154 or by notice under section 156F in each place. In section 5(3), delete relevant . In section 5(3)(c), replace any AML/CFT supervisor with the AML/CFT supervisor . In section 5(4), delete relevant . 6 Section 16 amended (Standard customer due diligence: verification of identity requirements) After section 16(1), insert: 1A Subsection (1)(b) and (c) does not require a reporting entity to take steps to verify any information obtained under section 15(d). In section 16(1)(d), replace regulations with rules made under section 156B . 7 Section 39A amended (Interpretation) In section 39A, replace the definition of suspicious activity with: suspicious activity — a means an activity undertaken in circumstances— i in which— A a person conducts or seeks to conduct a transaction through a reporting entity; or B a reporting entity provides or proposes to provide a service to a person; or C a person requests a reporting entity to provide a service or makes an inquiry to the reporting entity in relation to a service; and ii where the reporting entity has reasonable grounds to suspect that the transaction or proposed transaction, the service or proposed service, or the inquiry, as the case may be, is or may be relevant to— A the investigation or prosecution of any person for a money laundering offence; or B the enforcement of the Misuse of Drugs Act 1975; or C the enforcement of the Terrorism Suppression Act 2002; or D the enforcement of the Proceeds of Crime Act 1991 or the Criminal Proceeds (Recovery) Act 2009; or E the investigation or prosecution of an offence (within the meaning of section 243(1) of the Crimes Act 1961); and b includes an activity— i that occurs in the course of carrying out the business of a person who is in trade in respect of 1 or more of the articles described in section 67A; and ii where the person in trade has reasonable grounds to suspect that the activity is or may be relevant to 1 or more of the matters described in paragraph (a)(ii)(A) to (E) . 8 New section 40A inserted (Certain persons in trade may report suspicious activities) After section 40, insert: 40A Certain persons in trade may report suspicious activities 1 This section applies to a person who is in trade in respect of 1 or more of the articles described in section 67A. 2 A person to whom this section applies may report any suspicious activity to the Commissioner that occurs in the course of carrying out their business. 9 Section 41 amended (Nature of suspicious activity report) In section 41(1), after section 40 , insert or 40A . In section 41(1)(a), replace prescribed with approved . In section 41(1)(b), replace regulations with rules made under section 156C . In section 41(1)(c), after reporting entity , insert or person in trade . In section 41(1)(d), after reporting entity , insert or person in trade . In section 41(2), after reporting entity , insert or person in trade . 10 Section 46 amended (Disclosure of information relating to suspicious activity reports) In section 46(2)(a), replace a with any . Replace section 46(2)(b) with: b the AML/CFT supervisor; or In section 46(4), replace An AML/CFT supervisor with The AML/CFT supervisor . In section 46(5), delete that made the delegation . 11 Section 60 amended (Annual AML/CFT report) In section 60(2)(a), replace prescribed form with approved form (if any) . In section 60(2)(c), replace regulations with rules made under section 156B . After section 60(2)(c), insert: d provide any sector-specific information required by the AML/CFT supervisor under rules made under section 156B . In section 60(3), replace its AML/CFT supervisor with the AML/CFT supervisor . 12 Sections 62 and 63 repealed Repeal sections 62 and 63. 13 Section 64 replaced (Procedure for approval and publication of codes of practice) Replace section 64 with: 64 Chief executive of AML/CFT supervisor may make codes of practice 1 The chief executive of the AML/CFT supervisor may make 1 or more codes of practice for the following: a all reporting entities: b specific classes of reporting entities: c specific activities or classes of activities regulated by this Act or its regulations or rules. 2 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, regulations, notices, and rules. 3 Before making a code of practice, the chief executive must consult— a the persons or bodies that the chief executive considers may be affected by the proposed code of practice; and b the Minister. 4 A code of practice made under this section is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 14 Section 65 amended (Amendment and revocation of codes of practice) In section 65(2), replace Sections 63, 64, 66, and 67 with Sections 64 and 67 . After section 65(2), insert: 3 Section 64(3) does not apply to amendments to codes of practice if the chief executive of the AML/CFT supervisor is satisfied that— a the amendments are only correcting minor errors; or b the amendments are otherwise of a minor or technical nature only. 15 Section 66 repealed (Proof of codes of practice) Repeal section 66. 16 Section 67 amended (Legal effect of codes of practice) In section 67(3), (4), and (5), replace section 64(6) with section 64 . 17 Section 70 amended (Reporting requirements) Replace section 70(a) with: a be in the approved form (if any); and In section 70(c), replace regulations with rules made under section 156C . 17A Section 79 amended (Possible responses to civil liability act) After section 79(a), insert: aa issue a censure under section 80A : 17B New sections 80A and 80B and cross-heading inserted After section 80, insert: Censures 80A Censures 1 The AML/CFT supervisor may censure a person in accordance with subsections (2) and (4) if the AML/CFT supervisor is satisfied on reasonable grounds that the person has engaged in conduct that constitutes a civil liability act. 2 The AML/CFT supervisor must, at least 10 working days before censuring the person, give written notice that the AML/CFT supervisor may censure the person and set out the grounds upon which it proposes to do so. 3 A person who receives a notice under subsection (2) may make a written submission on the matter within 10 working days of receiving the notice. 4 The AML/CFT supervisor must give written notice of a censure, and the notice must set out the grounds upon which the AML/CFT supervisor has censured the person. 80B Appeals against censure A person may appeal to the District Court against a decision of an AML/CFT supervisor to issue a censure against the person under section 80A . 18 Section 118 amended (Powers under search warrant) In section 118(3), replace 118, 119, and 130 with 118 and 119 . 19 Section 130 repealed (AML/CFT supervisors) Repeal section 130. 20 Section 131 replaced (Functions) Replace section 131 with: 131 Functions The functions of the AML/CFT supervisor are to— a monitor and assess the level of risk of money laundering and the financing of terrorism, including through providing risk assessments and intelligence to the Commissioner and reporting entities: b monitor reporting entities for compliance with this Act and regulations, and for this purpose to develop and implement a supervisory programme: c provide timely and up-to-date guidance to reporting entities to assist compliance with this Act, regulations, and rules: d investigate reporting entities and enforce compliance with this Act, regulations, and rules: e engage with reporting entities to identify and mitigate unintended consequences of the application of this Act, regulations, and rules: f engage with the Ministry and the Commissioner on policy development, regulatory reform, levy settings, administration, ministerial exemptions, and as otherwise requested under section 149(ca) : g engage with domestic and international agencies that have oversight functions about any matter relating to the AML/CFT supervisor’s functions, both bilaterally and in relevant forums, to— i ensure the consistent, effective, and efficient implementation of this Act; and ii meet international commitments: h make codes of practice for reporting entities: i make rules relating to AML/CFT requirements and other matters under this Act: j make notices relating to the application of this Act. 21 Section 132 amended (Powers) In section 132(1), replace An AML/CFT supervisor with The AML/CFT supervisor . In section 132(2), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 132(2)(a), after on notice , insert given in accordance with subsection (3A) . In section 132(2)(b), after section 133 , insert (including via an audio or audiovisual link) . After section 132(2)(b), insert: ba require any person whom the AML/CFT supervisor reasonably suspects has knowledge of a possible contravention of this Act or regulations to attend a meeting (including via an audio or audiovisual link) with the AML/CFT supervisor to— i answer any questions relating to a reporting entity’s records and documents; and ii provide any other information that the AML/CFT supervisor considers necessary or desirable for the purposes of performing or exercising its functions, powers, or duties under this Act and regulations; and In section 132(2)(c)(iii) and (iv), replace and regulations with , regulations, and rules . In section 132(3), replace An AML/CFT supervisor with The AML/CFT supervisor . After section 132(3), insert: 3A The AML/CFT supervisor may require production of, or access to, records, documents, or information under subsection (2)(a)— a as soon as possible after notification, if the AML/CFT supervisor considers that the production of, or access to, the records, documents, or information is a matter of urgency; or b in any other case,— i by any specified date that the AML/CFT supervisor considers reasonable in the circumstances; or ii if no specified date is given, within 10 working days. 3AA A person required to attend a meeting under subsection (2)(ba) may— a be represented by a lawyer at the meeting; and b end the meeting at any point. 3B A person is not required to answer a question asked by the AML/CFT supervisor under subsection (2)(ba) if the answer would or could incriminate the person. 3C Before the AML/CFT supervisor requires a person to answer a question under subsection (2)(ba) , the person must be informed of the rights specified in subsections (3AA) and (3B) . 22 Section 133 amended (Matters relating to conduct of on-site inspections) In section 133(1), replace An AML/CFT supervisor with The AML/CFT supervisor . In section 133(1), delete a dwellinghouse or . In section 133(2), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 133(3), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 133(4), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 133(5), delete (as defined in section 42) . 23 New section 133A inserted (Power to enter dwellinghouses) After section 133, insert: 133A Power to enter dwellinghouses 1 Despite section 133(1), the AML/CFT supervisor must not enter a dwellinghouse to conduct an on-site inspection except— a with the consent of the occupier; or b pursuant to a warrant issued under subsection (2) . 2 An issuing officer may, on an application made by the AML/CFT supervisor in the manner provided in subpart 3 of Part 4 of the Search and Surveillance Act 2012, issue a warrant to enter a dwellinghouse if the officer is satisfied that there are reasonable grounds to believe that the dwellinghouse is a place where— a a reporting entity carries out work; and b records, documents, or information relevant to the supervision and monitoring of the reporting entity under this Act are likely to be kept. 3 A warrant issued under subsection (2) authorises the AML/CFT supervisor to exercise only the powers specified in sections 132(1) and (2)(b) and 133 and only in respect of the parts of the dwellinghouse where the reporting entity carries out work. 24 Section 142 amended (Financial intelligence functions of Commissioner) In section 142(h), replace AML/CFT supervisors with the AML/CFT supervisor . In section 142(k), replace AML/CFT supervisors with the AML/CFT supervisor . Replace section 142(l) with: l co-operate with relevant agencies domestically and internationally to help ensure the effective implementation of the requirements under this Act and regulations, including participation in international forums and as requested under section 149(cb) : m make rules relating to reports and other matters under this Act: n make notices relating to the application of this Act. 25 Section 149 amended (Role of Ministry) After section 149(c), insert: ca establishing reference, working, and other groups— i as required to give effect to section 149D ; and ii as considered necessary by the Ministry to give effect to this Act and regulations; and cb engaging with domestic and international counterparts and participating in relevant forums to ensure the consistent, effective, and efficient implementation of this Act in a way that is consistent with New Zealand’s international obligations; and cc issuing a regulatory work programme for AML/CFT; and In section 149, insert as subsection (2): 2 The chief executive has the following functions: a making notices relating to prescribed thresholds and amounts under section 156D : b making exemption notices under section 156E . 26 New sections 149A to 149F and cross-heading inserted After section 149, insert: National strategy and work programme 149A National strategy for AML/CFT must be adopted 1 The Minister must adopt a national strategy for AML/CFT. 2 The purpose of the national strategy is to direct the AML/CFT supervisor, the Commissioner, the Ministry, and other public service agencies in performing or exercising their functions, duties, and powers under the Act to give effect to the purpose set out in section 3. 3 In developing the national strategy, the Minister must have regard to any relevant risk assessments or intelligence provided by the Commissioner or the AML/CFT supervisor. 3A Before adopting the national strategy, the Minister must consult the persons or bodies that the Minister considers may be affected by the strategy. 4 Any direction to the Commissioner in the national strategy must be consistent with section 16 of the Policing Act 2008 (which provides for the responsibilities and independence of the Commissioner). 149B Publication of national strategy After adopting a national strategy under section 149A , or after amending or replacing the strategy, the Minister must, as soon as practicable,— a present a copy of the strategy to the House of Representatives; and b notify the adoption, amendments, or replacement in the Gazette ; and c publish the strategy on an Internet site maintained by or on behalf of the Ministry. 149C Duty to review national strategy after Financial Action Task Force evaluation The Minister must review the national strategy following the publication of a Financial Action Task Force mutual evaluation final report relating to New Zealand. 149D Regulatory work programme must be issued 1 The Ministry must issue a regulatory work programme for AML/CFT following the issue of a national strategy adopted under section 149A . 2 The purpose of the work programme is to set out how the AML/CFT supervisor, the Commissioner, the Ministry, and any other relevant public service agency will give effect to the national strategy. 2A Before issuing the regulatory work programme, the Ministry must consult the persons or bodies that the Ministry considers may be affected by the work programme. 3 The Ministry must publish a summary of the work programme on an Internet site maintained by or on behalf of the Ministry. 4 See also section 155C , which requires the Minister to have regard to the work programme when recommending the making of regulations that set a levy. 149E Ministry must report annually on work programme and levy 1 The Ministry must provide an annual report to the Minister on the work programme and the levy. 2 The annual report must be provided within 12 months after the end of each financial year. 3 The annual report must include— a details of the total amount of levies collected: aa details of how the levies were used: b future projections of cost and revenue. 4 The Ministry must publish the report on an Internet site maintained by or on behalf of the Ministry. 149F Ministry must review levy funding for work programme 1 The Ministry must, 3 years after levy regulations are made or significantly amended,— a review the levy funding for the work programme; and b provide a report to the Minister on its findings. 2 During the review, the Ministry must consult the persons or bodies that the Ministry considers may be affected by the levy funding for the work programme. 3 The Ministry must publish a report made under subsection (1)(b) on its Internet site within 6 months after the provision of the report to the Minister. 4 The requirement in subsection (1) does not apply to any minor or technical amendments to the levy regulations. 5 In this section, levy regulations means regulations made under section 155A prescribing a levy. 27 Sections 150 to 152 repealed Repeal sections 150 to 152. 28 Section 153 amended (Regulations) Repeal section 153(1)(a) to (c) and (e) to (h). In section 153(1)(i), replace an AML/CFT supervisor with the AML/CFT supervisor . 29 Section 154 amended (Regulations relating to application of Act) Repeal section 154(1)(a), (ac) to (d), (f), and (k). After section 154(1)(l), insert: m declaring a person or class of persons to be, or not to be, a designated non-financial business or profession for the purposes of this Act: n declaring an arrangement to be a legal arrangement for the purposes of this Act: o declaring a person to be, or not to be, an ordering institution for the purposes of this Act. 30 New sections 155A to 155D inserted After section 155, insert: 155A Levies payable by reporting entities 1 Every reporting entity must pay to the Crown, or to a prescribed person on behalf of the Crown, a levy prescribed by the regulations made under subsection (2) . 2 The Governor-General may, by Order in Council, on the recommendation of the Minister, make regulations providing for the levies. 3 The levies must be prescribed on the basis that the following costs should be met out of the levies: a a portion of the costs incurred by the Ministry, the AML/CFT supervisor, and the Commissioner in performing or exercising their functions, powers, and duties under this Act; and b a portion of any additional costs associated with giving effect to the national strategy adopted under section 149A and with the work programme issued under section 149D ; and c the full costs of collecting the levy money. 4 For the purpose of subsection (3)(a) and (b) , the Minister must determine whether the whole or a portion of the costs will be met by levies under this Act (and the size of any portion). 5 Levies may be prescribed on the basis that any actual cost that could have been, but has not been, recovered as a levy shortfall for a year may be recovered (along with any financing charge) over any period of up to 5 years. 6 The regulations may— a specify the class or classes of reporting entities that are required to pay a levy: b specify the amount of levies or the method of calculating or ascertaining the amount of levies: c include in levies, or provide for the inclusion in levies of, any shortfall in recovering the actual costs: d refund, or provide for refunds of, any over-recovery of the actual costs: e provide for the payment and collection of levies: f specify the financial year, or part financial year, to which a levy applies, and apply that levy to that financial year, or part financial year, and each subsequent financial year until the levy is revoked or replaced: g require payment of a levy for a financial year, or part financial year, irrespective of the fact that the regulations may be made after that financial year has commenced. 7 Regulations made under this section may provide for different levies for different classes of reporting entities. 8 Regulations made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 155B Miscellaneous provisions relating to levies 1 If a person is in 2 or more classes of reporting entities in respect of which different levies have been prescribed under section 155A , the person must pay each of those levies (unless the regulations provide otherwise). 2 The person to whom the levy is payable must ensure that each levy payment is paid into a Crown Bank Account and is separately accounted for. 3 The amount of any unpaid levy is recoverable in any court of competent jurisdiction as a debt due to the Crown. 155C Matters to which Minister must have regard Before recommending the making of regulations under section 155A , the Minister must have regard to the national strategy and the work programme. 155D Minister must consult on proposed levy regulations 1 Before recommending the making of regulations under section 155A , the Minister must consult the persons or bodies that the Minister considers may be affected by the proposed regulations. 2 A failure to comply with this section does not affect the validity of the regulations. 31 Section 156 amended (Consultation not required for consolidation of certain regulations and minor amendments) In section 156, insert as subsection (2): 2 The Minister is not required to comply with section 155D in respect of regulations made under section 155A that amend other regulations if the Minister is satisfied that— a the amendments are only correcting minor errors; or b the amendments are otherwise of a minor or technical nature only; or c it is necessary or desirable in the public interest that the amendments be made urgently. 32 New sections 156B to 156J and cross-headings inserted After section 156A, insert: Rules 156B AML/CFT supervisor may make rules 1 The chief executive of the AML/CFT supervisor may make rules for all or any of the following purposes: a prescribing requirements (generic and sector-specific) for standard, simplified, enhanced, and ongoing customer due diligence and any other AML/CFT requirements, including, but not limited to, the following: i information to be provided or obtained for the purposes of identification and verification: ii the circumstances in which a particular type of customer due diligence must be conducted: iii specifying entities or classes of entities, or products, services, or transactions for which a reporting entity may conduct simplified customer due diligence: iv the conditions in which third parties may be relied on to conduct customer due diligence: v the conditions on which a member of a designated business group may adopt an AML/CFT programme of another member of the group and share and use the policies, controls, and procedures of that programme: vi the circumstances in which corporations are deemed to be affiliated: vii the factors that a reporting entity must have regard to when assessing risk: viii the time period for auditing of a reporting entity’s risk assessment and AML/CFT programme: b prescribing instruments to be bearer-negotiable instruments for the purposes of this Act: c prescribing the information to be included in any of the following documents required under this Act: i any documents required under subpart 1 of Part 2: ii annual reports under section 60 (including, without limitation, sector-specific information): d prescribing the information to be included in records, and the manner in which records are to be kept, by reporting entities or any specified class or classes of reporting entities: e prescribing other identifying information that allows a transaction to be traced back to the originator for the purposes of section 27(1): f prescribing the manner in which any of the following are to be given or served: i any documents required under subpart 1 of Part 2: ii annual reports under section 60: iii formal warnings under section 80: iv written notices under section 80A(2) : v censures under section 80A(4) : g prescribing requirements for the purposes of section 30(b) that apply to new or developing technologies or products that might favour anonymity. 2 Sections 156H to 156J apply to the chief executive of the AML/CFT supervisor when making rules under subsection (1) . 3 Subsection (2) does not apply if the chief executive of the AML/CFT supervisor is satisfied that the rules make an amendment that is minor in effect or corrects a minor or technical error. 4 Rules made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 156C Commissioner may make rules 1 The Commissioner may make rules for all or any of the following purposes: a prescribing the information to be included in documents or reports: b prescribing the manner in which documents or reports are to be given or served. 2 In this section, documents or reports means— a suspicious activity reports: b prescribed transaction reports: c cash reports. 3 Sections 156H to 156J apply to the Commissioner when making rules under subsection (1) . 4 Subsection (3) does not apply if the Commissioner is satisfied that the rules make an amendment that is minor in effect or corrects a minor or technical error. 5 Rules made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). Notices 156D Chief executive may make notice prescribing amounts or thresholds 1 The chief executive may, by notice, prescribe amounts or thresholds that are required to be prescribed for the purposes of this Act or regulations. 2 The chief executive may prescribe 1 or more amounts or thresholds for the purposes of different provisions of this Act or regulations. 3 Without limiting subsection (1) , the chief executive may prescribe threshold values for the purposes of sections 68 and 69 and may prescribe the person or class of persons, transaction or class of transactions, or financial activity or class of financial activities to which that threshold applies. 4 The chief executive may not exercise the power under subsection (1) in relation to a particular amount or threshold if any regulations made under section 153(1)(d) already provide for it. 4A Sections 156H to 156J apply to the chief executive when making an exemption notice a notice under subsection (1) . 5 Notices made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 156E Chief executive may make exemption notice relating to reporting entity or transaction 1 The chief executive may, by notice, exempt either or both any of the following from the requirements of all or any of the provisions of this Act: a a reporting entity or class of reporting entities: b a transaction or class of transactions. b a transaction, product, or service or class of transactions, products, or services: c a financial activity or class of financial activities described in the definition of financial institution in section 5. 2 The chief executive may grant an exemption on— a the chief executive’s own motion; or b the recommendation of a New Zealand government agency; or c application by 1 or more reporting entities made in a manner or form approved by the chief executive (if any). 3 The chief executive may grant the exemption— a unconditionally; or b subject to any conditions that the chief executive thinks fit. 4 Sections 156H to 156J apply to the chief executive when making a notice under subsection (1) . 5 An exemption notice made under this section is secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 156F AML/CFT supervisor may make notice relating to application of Act 1 The chief executive of the AML/CFT supervisor may make notices for the following purposes: a exempting or providing for the exemption of any transaction, product, or service or class of transactions, products, or services from all or any of the provisions of this Act: b exempting or providing for the exemption of any financial activity or class of financial activities described in the definition of financial institution in section 5 from all or any of the provisions of this Act: c declaring an entity or a class of entities to be an approved entity or approved class of entities for the purposes of section 33(3A): d excluding certain relationships or banking services from the application of section 29 (which relates to correspondent banking relationships): e exempting a reporting entity from its obligation to obtain some or all of the information set out in section 27(1) in relation to a specified transfer or transaction: f declaring an account or arrangement to be, or not to be, a facility and the circumstances and conditions in which an account or arrangement is, or is not, a facility for the purposes of this Act: g declaring a person to be, or not to be, a reporting entity and the circumstances and conditions in which a person is, or is not, a reporting entity for the purposes of this Act: h declaring an activity to be, or not to be, an occasional activity and the circumstances and conditions in which an activity is, or is not, an occasional activity for the purposes of this Act: i declaring a transaction to be, or not to be, an occasional transaction and the circumstances and conditions in which a transaction is, or is not, an occasional transaction for the purposes of this Act: k declaring a transfer or transaction, or a class of transfers or transactions, not to be a wire transfer and the circumstances and conditions in which a transfer or transaction, or class of transfers or transactions, is not a wire transfer for the purposes of this Act: l declaring a person or class of persons to be, or not to be, a customer and the circumstances and conditions in which a person or class of persons is, or not, a customer for the purposes of the Act: m declaring an entity or class of entities (whether domestic or overseas) to be eligible for inclusion in a designated business group: n prescribing requirements for written elections for a person to become a member of a designated business group: o declaring a person to be, or not to be, a financial institution for the purposes of this Act: p declaring a person to be, or not to be, a designated non-financial business or profession for the purposes of this Act: q declaring an arrangement to be a legal arrangement for the purposes of this Act: r declaring a person to be, or not to be, an ordering institution for the purposes of this Act. 1A Sections 156H to 156J apply to the chief executive when making a notice under subsection (1) . 2 Notices made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). 3 Notices made under this section must be consistent with any regulations made under section 154. 156G Commissioner may make notice relating to application of Act 1 The Commissioner may make notices for the following purposes: a exempting a reporting entity or class of reporting entity from the obligation to report under section 48A in relation to international wire transfers: b exempting a reporting entity or class of reporting entity from the obligation to provide some or all of the information in section 48B(1)(b) in a prescribed transaction report in respect of a particular transfer or transaction: c exempting certain movements and receipts of cash from the application of subpart 6 of Part 2. 1A Sections 156H to 156J apply to the Commissioner when making a notice under subsection (1) . 2 Notices made under this section are secondary legislation ( see Part 3 of the Legislation Act 2019 for publication requirements). Process for making rules and notices 156H Matters to which maker of rules or notice must have regard Before making rules or a notice under sections 156A to 156G , the maker must have regard to— a the intent and purposes of this Act and any regulations; and b the risk of money laundering and the financing of terrorism, including, where appropriate, the risk associated with a reporting entity, the products and services offered by the reporting entity, and the circumstances in which the products and services are provided; and c the impact on the prevention, detection, investigation, and prosecution of offences; and d the level of regulatory burden on a reporting entity; and e whether the rules or notice would create an unfair advantage for a reporting entity or would disadvantage other reporting entities; and f the overall impact that the rules or notice would have on the integrity of, and compliance with, the AML/CFT regulatory regime. 156I Maker must consult on proposed rules or notice 2 Before making rules or a notice under sections 156A to 156G , the maker must consult— aa the persons or bodies that the maker considers may be affected by the proposed rules or notice: aab the Minister: a if the chief executive is the maker, the AML/CFT supervisor and the Commissioner: b if the chief executive of the AML/CFT supervisor is the maker, the Ministry and the Commissioner: c if the Commissioner is the maker, the AML/CFT supervisor and the Ministry: d in all cases, any other public service agencies or regulators that the maker of the notice considers have an interest in the proposed rules or notice. 3 A failure to comply with this section does not affect the validity of the rules or notice. 156J Maker of rules or notice must publish reason for making rules or notice The maker of rules or a notice under sections 156A to 156G must publish the reason for making the rules or notice alongside the rules or notice. 33 New section 159B and cross-heading inserted After section 159A, insert: Forms 159B AML/CFT supervisor or Commissioner may approve forms 1 The AML/CFT supervisor may approve the forms of the following documents: a any document required under subpart 1 of Part 2: b annual reports under section 60: c formal warnings under section 80 . : d written notices under section 80A(2) : e censures under section 80A(4) . 2 The Commissioner may approve the forms of the following documents: a suspicious activity reports: b prescribed transaction reports: c cash reports. 34 Schedule 1 amended In Schedule 1,— a insert the Part set out in Schedule 1 of this Act as the last Part; and b make all necessary consequential amendments. 35 Consequential amendments to principal Act Amend the principal Act as set out in Schedule 2 . 36 Consequential amendments to other enactments The enactments specified in Schedule 3 are amended in the manner specified in that schedule. 1 New Part 3 inserted into Schedule 1 3 Transitional and savings provisions relating to Anti-Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and Other Matters) Amendment Act 2025 8 Interpretation In this Part,— Act means the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 amendment Act means the Anti-Money Laundering and Countering Financing of Terrorism (Supervisor, Levy, and Other Matters) Amendment Act 2025 commencement means the commencement of the amendment Act DIA means the Department of Internal Affairs FMA means the Financial Markets Authority RBNZ means the Reserve Bank of New Zealand secondary legislation means secondary legislation made under the Act secondary legislation provision means any provision in the Act that provides for the making of secondary legislation. Transitional provisions relating to AML/CFT supervisor changes 9 Consequences of transfers of functions under Act 1 This clause applies to— a a function or power of the FMA in relation to this Act that is transferred to the DIA as a consequence of the amendments made by the amendment Act; and b a function or power of the RBNZ in relation to this Act that is transferred to the DIA as a consequence of the amendments made by the amendment Act. 2 On and after commencement,— a all information that relates solely or principally to the function and that is held by the FMA or the RBNZ and that is transferred by the FMA or the RBNZ to the DIA is held by the DIA; and b all rights, liabilities, entitlements, and engagements of the FMA or the RBNZ in relation to the function become the rights, liabilities, entitlements, and engagements of the DIA; and c all directions to the FMA or the RBNZ that relate to the function or power and that are in force immediately before the commencement become directions to the DIA; and d anything done, omitted to be done, or that is to be done in relation to the function or power by, or in relation to, the FMA or the RBNZ is to be treated as having been done, having been omitted to be done, or to be done by, or in relation to, the DIA; and e the commencement, continuation, or enforcement of a proceeding relating to the function or power by or against the FMA or the RBNZ may instead, with the agreement of the FMA or the RBNZ, as relevant, be carried out by or against the DIA without amendment to the proceeding; and f a matter or thing relating to the function or power that would, but for this clause, have been completed by the FMA or the RBNZ may be completed by the DIA. 3 On and after commencement, property identified by the FMA or the RBNZ as being owned by the FMA or the RBNZ solely or principally for the purposes of the function or power and that should be transferred to the DIA is vested in the DIA. 4 The transfer of information from the FMA or the RBNZ to the DIA under subclause (2)(a) does not constitute an action that is a breach of information privacy principle 8 or 11 (as set out in section 22 of the Privacy Act 2020). 10 Restriction on compensation for technical redundancy 1 An employee of the FMA or the RBNZ is not entitled to receive any payment or other benefit on the ground that the position held by the employee in the FMA or the RBNZ has ceased to exist if— a the position ceases to exist as a result of a transfer of a function or power from the FMA or the RBNZ to the DIA as referred to in clause 9 ; and b in connection with that transfer of a function or power,— i the employee is offered equivalent employment in the DIA (whether or not the employee accepts the offer); or ii the employee is offered, and accepts, other employment in the DIA. 2 In this clause, equivalent employment , in relation to the employee’s employment in the FMA or the RBNZ is employment in the DIA that is— a in substantially the same position; and b in the same general locality; and c on terms and conditions of employment that are no less favourable than those that applied to the employee immediately before the offer of equivalent employment (including any service-related, redundancy, and superannuation conditions). 11 Employment of transferred employee to be treated as continuous employment 1 The employment of a transferred employee by the DIA is to be treated as continuous employment for the purposes of any legislation. 2 In this clause, transferred employee means a person referred to in clause 10 who has been offered and has accepted employment in the DIA. Savings provisions relating to secondary legislation 12 Saving of secondary legislation provisions for purpose of revocation 1 This clause applies to a secondary legislation provision in the Act repealed by the amendment Act as it was immediately before commencement. 2 The secondary legislation provision remains in force after commencement for the purpose of revoking any secondary legislation made under it. 13 Saving of secondary legislation made before commencement 1 This clause applies to any secondary legislation made before commencement. 2 The secondary legislation— a remains in force after commencement; and b may be revoked as provided for in clause 12(2) (but not amended) after commencement. 2 Consequential amendments to principal Act In section 3(2), delete , AML/CFT supervisors, . In section 6(4)(d)(ii)(I), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 10, replace regulations with rules made under section 156B in each place. In section 13(b), replace regulations with rules made under section 156B . In section 14(1)(d) and (3), replace regulations with rules made under section 156B . In section 15(f), replace regulations with rules made under section 156B . In section 18(1)(c), (2)(q), and (3A), replace regulations with rules made under section 156B . In section 19(1)(d), replace regulations with rules made under section 156B . In section 22(1)(e) and (6), replace regulations with rules made under section 156B . In section 23(1)(b), replace regulations with rules made under section 156B . In section 24(1)(c), replace regulations with rules made under section 156B . In section 27(1)(d), replace regulations with rules made under section 156B . Replace section 27(3) with: 3 A reporting entity may, by notice made under section 156E or 156F , be exempted from the obligation to provide some or all of the information set out in subsection (1) in relation to a specified transfer or transaction. In section 28(1)(b), replace regulations with rules made under section 156B . In section 29(2)(g), replace regulations with rules made under section 156B . In section 29(3)(d) and (e), replace regulations with notice made under section 156F . In section 30(b), replace regulations with rules made under section 156B . In section 31(4)(c), replace regulations with rules made under section 156B . In section 32(1)(a) and (b), replace regulations with rules made under section 156B . In section 32(1A), replace regulations with rules made under section 156C . In section 32(2), replace and regulations with , rules, and regulations . In section 32(3), replace An AML/CFT supervisor for a reporting entity that is part of a designated business group may require the reporting entity with The AML/CFT supervisor may require a reporting entity that is part of a designated business group . In section 33(1), (2)(c) and (e), and 3A(b) and (d), replace regulations with rules made under section 156B . In section 34,— a replace prescribed by regulations with prescribed by rules made under section 156B ; and b replace this Act or regulations with this Act or rules . In section 35, replace and regulations with , regulations, and rules . In section 39(3)(c), replace regulations with rules made under section 156B . In section 48, replace An AML/CFT supervisor that has, in the performance and exercise of its functions and powers under this Act, obtained personal information about employees or senior managers may disclose that information with The AML/CFT supervisor may disclose personal information about employees or senior managers obtained in the performance and exercise of its functions and powers under this Act . In section 48A, replace regulations made under section 154 with notice made under section 156F . Replace section 48B(1)(a) with: a be in the appropriate approved form (if any); and In section 48B(1)(b)(vi), replace regulations made under section 153(c) with rules made under section 156C . In section 49(2)(g), replace regulations with rules made under section 156B . In section 49(3)(b), replace for the reporting entity, or the Commissioner, with or the Commissioner . In section 49A(2)(b), replace for the reporting entity, or the Commissioner, with or the Commissioner . In section 51(1)(d), replace regulations made under section 153 with rules made under section 156B . In section 51(3), replace its AML/CFT supervisor with the AML/CFT supervisor . In section 52(b), replace regulations with rules made under section 156B . In section 57(2), replace AML/CFT supervisors with the AML/CFT supervisor . In section 58(2)(g), replace AML/CFT supervisors with the AML/CFT supervisor . In section 58(2)(h), replace regulations with rules made under section 156B . In section 58(3)(c), replace and regulations with , regulations, and rules . In section 59(2),— a replace regulations with rules made under section 156B ; and b delete relevant . In section 59A,— a after regulations , insert or rules ; and b delete relevant . In section 59B(5), replace its AML/CFT supervisor with the AML/CFT supervisor . In section 61(1), replace regulations with rules . In section 61(2)(a), replace its AML/CFT supervisor with the AML/CFT supervisor . In section 68(1)(c), replace regulations with by notice made under section 156G . In section 69(c), replace regulations with by notice made under section 156G . In section 72(2)(b), delete relevant . In the heading to section 76, replace supervisors with supervisor . In section 76,— a replace an AML/CFT supervisor with the AML/CFT supervisor in each place; and b replace officer, employee, member of, or member of the board of, with officer, employee, or agent of . In section 77, replace or regulations with , regulations, or rules . In section 79, delete relevant . In section 80(1), delete relevant . In section 80(2)(a), replace prescribed with approved . In section 80(2)(b), replace regulations with rules made under section 156B . In section 81(1),— a delete relevant ; and b replace or regulations with , regulations, or rules . In section 81(2), delete relevant . In section 82(1), delete relevant in each place. In section 85(1), delete relevant . In section 87(1), delete relevant . In section 89(1), delete relevant . In section 90(1), delete relevant . In section 102,— a replace any AML/CFT supervisor with the AML/CFT supervisor ; and b replace that supervisor with the AML/CFT supervisor ; and c replace or regulations with , regulations, or rules . In section 103, replace an AML/CFT supervisor with the AML/CFT supervisor . In section 116, definition of enforcement officer ,— a delete relevant ; and b replace an AML/CFT supervisor with the AML/CFT supervisor . In section 124(2), delete relevant . In the cross-heading above section 130, replace supervisors with supervisor . In section 134(1), replace An AML/CFT supervisor with The AML/CFT supervisor . Repeal section 137(2) to (5). In section 137(6), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 137(7), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 138,— a replace An AML/CFT supervisor with The AML/CFT supervisor ; and b after that information , insert , including that it may be used for the purposes of this Act . In section 139(1), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 139(2), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 140(1),— a replace an AML/CFT supervisor with the AML/CFT supervisor ; and b replace or AML/CFT supervisor with or the AML/CFT supervisor . In section 141(1), replace an AML/CFT supervisor with the AML/CFT supervisor . In section 141(2), replace An AML/CFT supervisor with The AML/CFT supervisor . In section 141(3)(b), delete relevant . Replace the cross-heading above section 149 with: Role of Ministry In the cross-heading above section 153, after Regulations , insert and levies . In section 158(a),— a replace Ministers with Minister ; and b replace supervisors with supervisor . In section 159A(1), replace an AML/CFT supervisor with the AML/CFT supervisor . 3 Consequential amendments to other enactments In section 4(1), definition of law enforcement or regulatory agency , after paragraph (h), insert: ha the public service agency (as defined in section 5 of the Public Service Act 2020) that, with the authority of the Prime Minister, is for the time being responsible for the supervision of reporting entities under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009: In Schedule 1, Part 2, repeal the item relating to the Anti-Money Laundering and Countering Financing of Terrorism Act 2009. In section 5(1), repeal the definition of AML Act . In section 5(1), definition of direction , replace , the prudential legislation, or the AML Act with or the prudential legislation . In section 5(1), definition of law enforcement or regulatory agency , paragraph (a), after Financial Markets Conduct Act 2013 , insert , the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 . In section 10(1)(f)(ii), delete the AML Act, . In section 10(1)(i), delete the AML Act, . Repeal section 13(c). In section 26, delete the AML Act, . Repeal section 50(c). In section 59(1)(a), replace , any prudential legislation, or the AML Act with or any prudential legislation . In section 59(2)(a), replace , any prudential legislation, or the AML Act with or any prudential legislation .