AML/CFT net widened- second phase legislation introduced

Legislation to extend the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) regime was introduced to the House yesterday.

The Bill will extend the AML/CFT Act to include lawyers, conveyancers, accountants, real estate agents, the New Zealand Racing Board and dealers in high-end goods – e.g. motor cars, jewellery and art – when engaged in large cash transactions.

The amendments represent the second phase in the AML/CFT Act, phase one of which has been in effect since 2013.

The Government has slashed its initial estimate of compliance costs from $1.6 billion over ten years to between $800 million and $1.1 billion. The reduction reflects the fact that fewer people across all of the targeted occupations are now expected to come within the Act's purview than was originally thought.