Audits for Tier 2 reporting entities coming up under AML/CFT

It’s coming up a year since the introduction of the Anti-Money Laundering and Counter Financing Terrorism Act 2009 and the roll out to Tier 2 reporting entities.

We’re aware that the DIA and FMA have hired a substantial number of compliance officers in anticipation of the increase in the number of reporting entities that are to be audited. We remind you of those deadlines:

Lawyer/Legal Firms

Became compliant at 1 July 2018 and should be thinking about your first round of audit.

Accounting Firms

Became compliant at 1 October 2018 and should be thinking about your first round of audit.

The latest correspondence from the DIA requires the transfer of tax credits between parties to be recorded as a captured service.

Real Estate Agents

Became compliant as at 1 January 2019. You should be modifying your systems to ensure full compliance with the Act in preparation of your pending audits. We recommend that each entity undergoes a mock audit to ensure that compliance is achieved and maintained.

High Value Dealers

High Value Dealers will be required to be compliant with the Act before 1 August 2019. The DIA and FMA have decided that the minimum cash transaction value to be a captured service is $10,000NZD.

High value dealers include businesses within the following industries:

  • Jewellery/watches
  • Gold/silver and precious metals/stones
  • Paintings and prints/artefacts
  • Motor Vehicles
  • Ships
  • Protected foreign/domestic

For further information please check out the DIA website.

Moore Stephens Markhams has qualified auditors with AML certification and expertise with Tier 1 and Tier 2 roll outs. Got a question? Give us a call.

Published winter 2019.

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