AML/CFT annual report – reminders and tips

AML/CFT annual report – reminders and tips

21 JUL 2022

The supervisors use the information contained in your annual report to help them understand how your business meets its AML/CFT obligations and completing it should now be a regular entry on your annual AML/CFT calendar.

AML/CFT annual report – reminders and tips

With the due date of 31 August fast approaching we have put together a list of reminders and tips for those who might need a helping hand:

  • The reporting period is from 1 July 2021 through to 30 June 2022.
  • You can submit your report anytime between 1 July and 31 August 2022.
  • Use your previous reports as your guide and assemble all your data before you open the online report. If you are prepared it should take less than an hour and you can do it in one hit. 
  • If you had a recent audit and there were areas you needed to improve on or rectify you will need to note this in the report. So make sure you address these before you submit your report. 
  • Use the questions in the online report as a gauge to see if you have any gaps in your AML/CFT programme and where you need to get up to speed. 
  • Answer the questions honestly and use this as an opportunity to improve.
  • Remember the supervisors are on your side – they want you to do well and will help you if needed.

Below is a reminder of the five topics the annual AML/CFT report covers and the information you need to provide. This is a broad overview and the questions can be quite detailed so this is where it is helpful to refer back to previous reports. If this is your first report and you need help, then let us know.

1. Business contact details and organisation structure

2. Designated Business Group (DGB), AML/CFT risk assessment and AML/CFT programme

  • Details of your DBG.
  • Details about your business’s risk assessment and if it meets the requirements of the
  • AML/CFT Act and any changes to it in the past 12 months.
  • Details about your business’s procedures, policies and controls for managing and mitigating money laundering and terrorism financing.

3. Products and services, customers and channels that relate to your business

4. AML/CFT supervisor-specific questions (these may change from year to year)

  • For example this could include questions about how your business accepts cash and international payments.

5. Compliance with exemptions

  • Exemptions your business has been granted by the Minister of Justice from any or all provisions of the Act for businesses, transactions, products, services or customers.

What happens if you don't submit an annual AML/CFT report?

The supervisors have powers under the Act to apply penalties for non-compliance – so if you do not submit an annual AML/CFT report, compliance action may be taken against you. Further penalties may also apply if you supply false or misleading information in the report.

So, with deadline of 31 August just around the corner you should start preparing now. If you need any assistance don’t hesitate to contact the friendly and experienced compliance team at Strategi.