If you haven’t already, we strongly recommend checking out Strategi's Guidance Note, titled 'Changes to AML/CFT Act regulations – July 2023,' for detailed insights into these changes.

Why It matters

The AML/CFT Act imposes obligations on a wide range of entities, including financial institutions, accountants, lawyers, conveyancers, and more. The objective is clear: to detect and deter money laundering and terrorism financing activities within New Zealand.

Between July 2021 and June 2022, the Ministry of Justice conducted a comprehensive review of the AML/CFT Act's performance since 2017. This review assessed the effectiveness of the existing regulations and identified areas where changes were necessary or desirable. Consequently, the New Zealand Government has introduced a series of changes that are being implemented in three distinct stages.

A closer look at the stages

• Stage 1 – Effective from 31 July 2023: This initial stage aims to provide regulatory relief to certain businesses and to clarify existing obligations. It's essential for reporting entities to understand the nature of these changes, especially if it applies to their operations.
• Stage 2 – Effective from 1 June 2024: In this stage, new obligations will be introduced for existing reporting entities. These obligations will require adjustments and enhancements to compliance practices.
• Stage 3 – Effective from 1 June 2025: The third stage extends the coverage of the AML/CFT regime, introducing obligations on sectors that were not previously subject to these regulations. This broader scope signifies the evolving landscape of financial regulations.

Strategi's Guidance Note

To help reporting entities navigate these changes effectively, Strategi released a comprehensive Guidance Note titled 'Changes to AML/CFT Act regulations – July 2023.' This resource is available free of charge to all reporting entities and focuses on the key changes that came into effect on July 31, 2023. It outlines what needs to be done and provides valuable recommendations.

We will also offer more guidance before the next two stages, keeping you informed about any emerging changes and their impact on reporting entities. 

If you have any questions or need help implementing these changes into your business give our experienced team a call.