tmmonline.nz  |   landlords.co.nz        About Good Returns  |  Advertise  |  Contact Us  |  Terms & Conditions  |  RSS Feeds

NZ's Financial Adviser News Centre

GR Logo
Last Article Uploaded: Thursday, June 13th, 1:40PM

News

rss
Latest Headlines

Advisers fuming at AML proposal

Advisers have slammed a proposed change to Anti-Money Laundering legislation described by one financial planner as “bureaucracy gone berserk”.

Thursday, February 14th 2013, 9:04AM 3 Comments

by Niko Kloeten

The Ministry of Justice has asked for feedback on a proposal to require reporting entities to report all international wire transfers and large cash transactions to the police, regardless of whether the transactions are suspicious.

Under the new AML regime due to kick in from the start of July, reporting entities including Authorised Financial Advisers (AFAs) have to keep records of transactions in a “readily reconstructed” form.

But the new proposal is for them to also have to send records of the specified types of transactions to the Police Financial Intelligence Unit within 10 working days.

SIFA president Robert Oddy described the proposal as “bureaucracy gone berserk” and said it would impose extra costs and inconvenience on advisers.

He said the rules around wire transfers could affect advisers with clients who had money in overseas investments including UK listed trusts, managed funds and direct equities and bonds.

“It’s just absurd.  It’s a mindless increase in bureaucratic accumulation of data and you have to ask what the benefit is and who is going to look at it,” he said.

“A lot of this is coming out of bureaucrats in cupboards which must be windowless and airless.  No cost-benefit analysis seems to have been undertaken… someone just dreams this up and plants it on us.”

Oddy also questioned the need for New Zealand to copy Australia, which already has these requirements: “That’s not a good reason to do something, just because Australia does it.”

Murray Weatherston said suspicious transactions were a “whole different kettle of fish”  to the regular transactions that would nonetheless have to be reported to the police.

“The mythical person who comes in with $100,000 in a suitcase… it’s never happened to me and I never expect it to happen,” he said.

“The presumption is we are all involved in money laundering and the financing of terrorism unless we can prove we aren’t.”

The proposed changes, if they do go ahead, are unlikely to be passed before next year.

See this month's ASSET magazine for an in-depth look at the AML changes.

 

Niko Kloeten can be contacted at niko@goodreturns.co.nz

« AMP picks Mercer, drops Van EykFund managers call for level playing field »

Special Offers

Comments from our readers

On 14 February 2013 at 5:09 pm traveller said:
This is exactly what happens when people making the rules have no experience of the real business world.
On 15 February 2013 at 9:38 pm Mike said:
......and the Police will be able to cope with this flood of reporting - yeah right!
.....and there will be a guarantee of privacy with no leaks - yeah right!
....and clients will not be guilty before being found innocent - hope so!
On 18 February 2013 at 10:13 am paul said:
And how many advisers actually handle the clients money and make the transfers? I'd suggest very few will have to do any reporting around this.

Sign In to add your comment

 

print

Printable version  

print

Email to a friend
News Bites
Latest Comments
Subscribe Now

Weekly Wrap

Previous News
Most Commented On
Mortgage Rates Table

Full Rates Table | Compare Rates

Lender Flt 1yr 2yr 3yr
AIA - Back My Build 6.19 - - -
AIA - Go Home Loans 8.74 7.14 6.75 6.39
ANZ 8.64 7.74 7.39 7.25
ANZ Blueprint to Build 7.39 - - -
ANZ Good Energy - - - 1.00
ANZ Special - 7.14 6.79 6.65
ASB Bank 8.64 7.14 6.75 6.39
ASB Better Homes Top Up - - - 1.00
Avanti Finance 9.15 - - -
Basecorp Finance 9.60 - - -
Bluestone 9.24 - - -
Lender Flt 1yr 2yr 3yr
BNZ - Classic - 7.14 6.79 6.65
BNZ - Green Home Loan top-ups - - - 1.00
BNZ - Mortgage One 8.69 - - -
BNZ - Rapid Repay 8.69 - - -
BNZ - Std, FlyBuys 8.69 7.74 7.39 7.25
BNZ - TotalMoney 8.69 - - -
CFML Loans 9.45 - - -
China Construction Bank - 7.09 6.75 6.49
China Construction Bank Special - - - -
Co-operative Bank - First Home Special - 6.79 - -
Co-operative Bank - Owner Occ 8.40 6.99 6.79 6.65
Lender Flt 1yr 2yr 3yr
Co-operative Bank - Standard 8.40 7.49 7.29 7.15
Credit Union Auckland 7.70 - - -
First Credit Union Special - 7.45 7.35 -
First Credit Union Standard 8.50 7.99 7.85 -
Heartland Bank - Online 7.99 6.89 6.55 6.35
Heartland Bank - Reverse Mortgage - - - -
Heretaunga Building Society 8.90 7.60 7.40 -
HSBC Premier 8.59 - - -
HSBC Premier LVR > 80% - - - -
HSBC Special - - - -
ICBC 7.85 7.05 6.69 6.59
Lender Flt 1yr 2yr 3yr
Kainga Ora 8.64 ▼7.74 ▼7.35 ▼6.99
Kainga Ora - First Home Buyer Special - - - -
Kiwibank 8.50 7.99 7.79 7.55
Kiwibank - Offset 8.50 - - -
Kiwibank Special - 6.99 6.79 6.65
Liberty 8.59 8.69 8.79 8.94
Nelson Building Society 9.00 7.65 7.25 -
Pepper Money Advantage 10.49 - - -
Pepper Money Easy 8.69 - - -
Pepper Money Essential 8.29 - - -
Resimac - LVR < 80% 8.84 8.09 7.59 7.29
Lender Flt 1yr 2yr 3yr
Resimac - LVR < 90% 9.84 9.09 8.59 8.29
Resimac - Specialist Clear (Alt Doc) - - 8.99 -
Resimac - Specialist Clear (Full Doc) - - 9.49 -
SBS Bank 8.74 7.74 ▼7.09 ▲6.95
SBS Bank Special - 7.14 ▼6.49 ▲6.35
SBS Construction lending for FHB - - - -
SBS FirstHome Combo 6.19 6.14 - -
SBS FirstHome Combo - - - -
SBS Unwind reverse equity 9.95 - - -
Select Home Loans 9.24 - - -
TSB Bank 9.44 7.79 7.55 7.45
Lender Flt 1yr 2yr 3yr
TSB Special 8.64 6.99 6.75 6.65
Unity 8.64 6.99 6.79 -
Unity First Home Buyer special - 6.55 6.45 -
Wairarapa Building Society 8.60 6.95 6.85 -
Westpac 8.64 7.84 7.35 6.99
Westpac Choices Everyday 8.74 - - -
Westpac Offset 8.64 - - -
Westpac Special - 7.24 6.75 6.39
Median 8.64 7.19 7.17 6.65

Last updated: 12 June 2024 4:04pm

About Us  |  Advertise  |  Contact Us  |  Terms & Conditions  |  Privacy Policy  |  RSS Feeds  |  Letters  |  Archive  |  Toolbox  |  Disclaimer
 
Site by Web Developer and eyelovedesign.com