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For the vast majority of financial advice providers (FAPs), 16 March 2023 came and went with no drama. These firms had done the hard yards well in advance. Their advisers were trained, the businesses had their licenses and policies, processes and controls were in place. For these firms, the end of the two year transition period was a non-event.

As a reporting entity your Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) audit is essential as it ensures your business is compliant with the laws and regulations to prevent money laundering and terrorist financing. An audit can be a daunting process, but with proper preparation it can be an effective tool to ensure your business is meeting regulatory requirements.

Anti-money laundering and Countering Financing of Terrorism (AML/CFT) risk assessments are an essential part of ensuring businesses comply with regulations designed to prevent money laundering and terrorist financing. While a risk assessment may seem like a daunting task, it can help you identify and mitigate potential risks, ultimately protecting your reputation and bottom line.

The Government has proposed new regulations in response to issues identified in the recently released Statutory Review Report, covering gaps in high-risk areas, restrictions on sharing AML/CFT information, outdated definitions, and unnecessary costs to businesses. The proposed amendments cover most of the existing sets of AML/CFT regulations, with around 80 proposed additions, replacements, or reversals.

Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) audits are critical for businesses to ensure they are compliant with the laws and regulations in place to prevent financial crimes.

Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regulations exist to prevent the illegal use of your services for financial crimes such as money laundering, terrorist financing, and other illicit activities.

In New Zealand’s current economic environment, financial crime, such as money laundering and terrorist financing is unfortunately increasing every day and becoming more challenging for businesses to combat. Anti-Money Laundering (AML) compliance has also become more complex with supervisors becoming more stringent in their oversight. As a result, reporting entities are increasingly seeking the help of AML experts to help them navigate this complex landscape.

For the last 13 years the volume of registrations for the Level 5 qualification and the quality of assignment work have provided a good indication as to how well individuals and businesses providing financial advice are embracing industry standards.

The Financial Markets Authority (FMA) has always undertaken monitoring visits but you can expect to see the number and intensity of these visits increase from now on. Already, we have had a number of clients receive letters and calls from the FMA advising them of an impending monitoring visit.

Financial advice relating to mortgages, personal or general insurance is often given in stages but we are seeing a common issue where disclosure and meeting the Code obligations is not occurring until further down the track. This raises the question as to whether advisers are recognising when advice has been given and following the correct process?