The complete guide to meeting your AML/CFT obligations
All reporting entities must meet their obligations under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (hereafter referred to as the AML/CFT Act). AFAs, advisory practices, networks and QFEs who may all be reporting entities should not take this obligation lightly as the penalties for non-compliance are massive and can be as high as $2m and/or up to 2 years in prison.
To clarify your obligations, see what are my AML/CFT obligations?
Meeting AML/CFT obligations is not a five minute task. There may be significant work that needs to be undertaken for all those involved – the level of work being dictated by the size of the business and outcome of the business’ risk assessment.
Strategi Institute has developed a comprehensive manual for those who need to meet AML/CFT obligations. This manual – complete with appendices and checklists – is designed specifically for AFAs and small to medium-sized financial advice practices who are deemed to be reporting entities, and will give you the tools and direction you need.
However, the reporting entity still needs to do the work to analyse the business, develop your risk assessment, write your AML/CFT programme and make some key appointments and undertakings. This is not something that Strategi or Strategi Institute can do as you are the one who knows your business best and you are the one who has the legal obligation to meet the AML/CFT Act.
Strategi Institute has tested its manual and is confident that any AFA or small business owner who is deemed to be a reporting entity (and has a simple, client interfacing business with all NZ-domiciled clients of a low risk nature), and is prepared to spend quality time reading and taking action on the contents, should be able to meet their AML/CFT obligations without having to engage the services of an external AML/CFT consultant.
Those who, having purchased the manual, read the material and completed their risk assessment, then discover that their business is complex and deemed to be of a medium or high risk, may want to consider engaging an external AML/CFT consultant to review what they have drafted in their AML/CFT programme.
Strategi Ltd can be your AML/CFT auditor
There is a legal requirement to appoint an independent auditor to undertake the compulsory two-yearly AML/CFT audit. Strategi Ltd has specialist compliance staff who are able to conduct your AML/CFT audit. However, this can only occur if Strategi Ltd was not engaged as a consultant to help you meet your AML/CFT obligations.
What about adviser and staff training on AML/CFT?
Strategi Institute has a number of training options for networks, QFEs, advisers and staff on meeting AML/CFT obligations. These include:
- 3-hour classroom-based courses.
- Electronic packages that QFEs can purchase and load into their own learning management system. These explain the obligations under the Act and provide a multi-choice assessment.
- Radar online solution where advisers and staff log into Radar, undertake the training, complete multi-choice questions and have them marked. This will qualify for structured CPD hours.
- Annual AML/CFT refresher training and assessment delivered online via Radar. These are generic packages but can be customised to meet specific QFE and network requirements.
What is the investment?
The cost of getting it wrong is far in excess of the investment in the AML/CFT manual, the training packages and the compulsory two-yearly audits. Pricing for a standalone AFA or small to medium-sized adviser practice is shown below:
|Item||Benefit||Investment (ex GST)|
|AML/CFT manual and templates||End to end solution to enable you to complete your risk assessment and AML/CFT programme plus learn what your obligations are|| |
|Strategi Institute AML/CFT annual refresher training package including assessment||Meet the training requirements contained in your AML/CFT programme plus your requirements under Code Standards 14 & 15|| |
From $35 (free for Radar subscribers)
|2-yearly AML/CFT audit from Strategi||Meet the legal requirement to have an ‘independent’ auditor|| |
$450– $1,500 depending on type of audit