by Daniel Smith
Changes to the requirements of the FSPR mean that all financial service providers must declare whether they are captured under the AML/CFT Act and who they are supervised by.
The financial services that fall under Department of Internal Affairs AML/CFT supervision:
● being a creditor under a credit contract
● operating a money or value transfer service
● issuing and managing means of payment (eg credit and debit cards, cheques, travellers’ cheques, money orders, bankers’ drafts, and e-money)
● giving financial guarantees
● changing foreign currency
● providing forward foreign exchange contracts.
While most advisers will not be a reporting entity, a spokesperson from MBIE told Good Returns that it is important for all advisers to understand the requirements in case their circumstances change.
“We note that only certain financial advisers who advise on certain financial products are subject to AML/CFT obligations. For example, financial advisers that manage a portfolio of investments on behalf of a client may be well placed to detect suspicious activity.”
The MBIE spokesperson said that the AML/CFT reporting obligations were an important part of the new FSPR system.
“This information is being required on the FSPR as another way to help government agencies identify all those who are subject to AML/CFT obligations.
“This is consistent with the purposes of the FSPR as set out in the legislation, which includes to conform with New Zealand’s obligations under the international FATF (financial action task force) recommendations aimed at combating money laundering and countering financing of terrorism.”
The MBIE spokesperson said that “many submitters supported including a requirement to enter AML/CFT supervisor information on the FSPR when public feedback was sought” in the Consultation Paper – New Financial Advice Regime back in 2017.
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