As of June 2025, new Anti-Money Laundering regulations will require all Reporting Entities to adopt a Customer Risk-Rating process, marking a shift towards a more risk-based approach to financial crime prevention.
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.
“Money laundering” – it calls to mind laundromats and giant bags of cash, or maybe the Netflix series Ozark. For most people it’s a vague concept that’s ‘bad’, with no understanding of what it is and how it actually happens. But it’s a big problem: in New Zealand alone, around $1 billion is laundered every year, while globally the figure is estimated to be $4 trillion.
The AMLHUB outsourcing team manages the outsourcing for many New Zealand reporting entities. We have good oversight over the things that go right, and the ways it can go wrong.
Keep reading to learn about the six most common mistakes made in customer due diligence (CDD), and how you can avoid them. Plus, download your copy of the ID Document Guide.
This blog was updated 12 February, 2024.
The Department of Internal Affairs (DIA) reviewed 60 reporting entities’ compliance with independent audit requirements and concluded that there is room for improvement for everyone.
Keep your staff up to speed with AML training
Staff training is one of the key requirements of an AML/CFT programme. It's important for your staff as it gives them the knowledge and skills they need to help your company meet its AML obligations.
Every business prides itself on knowing its customers. Understanding their needs, wants, and behaviours is the foundation on which a business grows.
Typically, customers who use the same products and services tend to behave in the same way, with similar patterns of transactions and activities. And when a customer is acting unusually, i.e. outside the expected pattern of behaviour, it’s easy for businesses to spot this.
Record-keeping is a vital part of your AML/CFT programme, as it is the source of truth for all your activities. Without good records you cannot prove to external auditors and the Supervisors that your company is doing AML and that you are compliant.
Finding your AML auditor is one of the first steps to take when it comes to preparing for your three-yearly AML audit. But to make sure you're as ready as you can be, there are a couple of key areas you have to look at beforehand. In this blog you'll find my quick run-down of the important things you need to do before you have your AML audit, and an opportunity to download our free guide to AML Audits.
If the time for your AML audit is rapidly approaching, the most important question at the forefront of your mind should be: who will be my AML auditor?
