Use of Independent AML-CFT Audit as a Supervisory Tool -A Unique Opportunity for New Zealand’s AMLCFT Supervisors

Author: Martin Dilly, CAMS-Audit

The Anti‐Money Laundering and Countering Financing of Terrorism Act 2009 (the Act) came fully into force in New Zealand on 30 June 2013 bringing with it the requirement for entities caught by the Act (reporting entities) to be subject to an independent AML/CFT audit. A reporting entity must have an audit every two years (or at any other time at the request of its AML/CFT supervisor)2 which means that around 1,600 reporting entities must have an initial audit completed by 30 June 2015.

This statutory audit requirement provides a powerful tool for New Zealand’s AML/CFT Supervisors (being the Reserve Bank of New Zealand (RBNZ), the Financial Markets Authority (FMA) and the Department of Internal Affairs (DIA), together, the Supervisors). Such audits have the potential to improve the level and quality of compliance by reporting entities while lessening the workload for the Supervisors, who have a unique opportunity to optimise the audit framework for their purposes during this initial period of audits.

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