It's time to sort your annual AML/CFT report

Each reporting entity under the AML legislation must lodge their annual AML/CFT report with their Supervisor any time between the 1st of July to the 31st of August. Remember, there are no extensions to this deadline.

It's a good idea to get your report started ahead of time, as there is a fair amount of information that must be gathered. And, if you get stuck, you will still have time to ask for help. With the 31st August deadline fast approaching, here's an overview of what you need to do in order to submit your report.

1. What is an annual AML/CFT report?

You might be asking yourself: What is an annual report? Is it important? How does it help me? Do I have to submit it?

The short answer is: yes, it's important, and yes, it's non-negotiable for reporting entities captured by the AML/CFT legislation to submit (law, accounting, real estate, and financial service providers).

The annual report is a submission of information regarding the 12-month period from 1 July to 30 June each year. It is required by section 60 of New Zealand's Anti-Money Laundering and Countering Financing of Terrorism Act 2009. The annual report itself applies to activities that are covered by the Act. Each reporting entity is required to submit by the deadline, or as otherwise directed by their Supervisor.

2. What is the purpose of an annual report?

Your AML/CFT annual report is important for demonstrating to your Supervisor that you're meeting your AML requirements, for giving insights for AML Supervisors to understand your business, and to help you remain on top of your AML compliance.

It is especially important for the Supervisors. They use the annual report to understand how your business is:

• Meeting its AML/CFT obligations;
• Assessing and reducing its risk of ML/TF;
• Managing its financial activities.

This can often help assist in their decisions of who to audit.

Pulling together your AML/CFT report also serves as a great opportunity for you to review and update the status of your risk assessment and compliance programme (RA/CP). The RA/CP must be representative of the current state of your business, so it's efficient to plan a yearly review of your documents around the same time as your annual report.

3. What goes into an annual report?

So, what is actually required for your annual report?

The report covers five areas:

• Contact details and organisation structure
  
  This area will ask for information such as your legal company name, company number or equivalent, physical and postal address, your compliance officer's details, what type of business you are, where your owner is based, and office locations.
• Risk Assessment and Compliance Programme
  
  In this section you'll review the current state of your documents, and acknowledge if you are compliant. This will include auditing, any deficiencies, and changes to products/services. Remember, if you don't meet all the requirements, it's better to own this up-front as it shows the Supervisors you are aware of the issues at hand. And it's preferable to the Supervisors discovering non-compliance themselves. 
• Products and services, customers and channels
  
  This covers financials regarding activities covered by the Act, profiles of your customers, and channels (if you gained any new customers during the reporting period). There is a bit of calculation required for this section, so it's a good idea to start sooner rather than later.
• Supervisor-specific questions
  
  This will depend on who your Supervisor is, as each question is tailored to your sector.
• Compliance with exemptions
  
  This is to be filled out if you have a ministerial exemption.

Depending on your sector, and supervisor, there may be additional requirements you need to complete.

It must be:

• In the prescribed form;
• Take into account the results and implications of the required audit;
• Contain any information prescribed by regulations.

4. Where do I lodge my annual report?

You must lodge your annual AML/CFT report in the manner requested by your Supervisor. If you need help in getting your report together, there are several options you can try to get things moving:

• Supervisor email;
• Supervisor website;
• AML consultants.

With the Reserve Bank of New Zealand? Head here for more information: https://www.rbnz.govt.nz/regulation-and-supervision/anti-money-laundering-and-countering-terrorism-financing/aml-cft-obligations 

With the Financial Markets Authority? Head here for more information: https://www.fma.govt.nz/compliance/guidance-library/annual-amlcft-report-user-guide/ 

Looking for help to manage your Annual Report?

AML Solutions consultants can assist. They will work with you to identify the required data, prepare it, write the report, and assist with submission, from $500 +GST. 

Get in touch here for more information >>