Insights

The Dirty Money Series #13: Non-compliance and penalties

By Dacreed on Jul 29, 2019 11:45:00 AM

Cooperation between businesses, supervisors and government agencies is integral to the success of the AML/CFT (anti-money laundering and countering financing of terrorism) regime. Businesses are key players in the prevention of money laundering and terrorism financing. Law enforcement is the last line of defence.

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The Dirty Money Series #12: Reviews, audits, records and reporting

By Dacreed on Jul 22, 2019 11:37:00 AM

Reviews

You must review your AML/CFT (anti-money laundering and countering financing of terrorism) programme to:

  • ensure it stays up to date
  • identify any deficiencies in its effectiveness

You must make any necessary changes as a result of your review. Ideally your review should be annual.

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The Dirty Money Series #11: Train your team on AML/CFT

By Dacreed on Jul 15, 2019 11:32:00 AM

AML/CFT (anti-money laundering and countering financing of terrorism) is an area that is constantly evolving and ongoing training and professional development is a necessity for your staff to keep abreast of developments. Your AML/CFT programme needs to be a living programme that is implemented on a daily basis and is responsive to change. Therefore you need to proactively educate your team on why AML/CFT is important and what the obligations of each person are.

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The Dirty Money Series #10: Supervision and consultation

By Dacreed on Jul 8, 2019 11:28:00 AM

Reporting entities make a big difference in disrupting money laundering and terrorism financing in New Zealand and around the world. Appointed supervisors share a commitment to helping businesses meet their compliance obligations and keeping NZ’s money clean.

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The Dirty Money Series #9: Suspicious activity

By Dacreed on Jun 25, 2019 11:09:00 AM

Reporting entities have to report suspicious activity as well as suspicious transactions to the New Zealand Financial Intelligence Unit (FIU). Typically, every year the FIU will receive between 7,000 and 10,000 reports of suspicious activity. Reports received by the FIU are analysed for activities and patterns that may indicate criminal offending and merit further investigation. The FIU’s 2018 risk assessment report says that between April and December of 2017 six money laundering charges were lodged each month.

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The Dirty Money Series #8: Customer due diligence

By Dacreed on Jun 17, 2019 3:39:00 PM

Ensure you’re prepared to collect adequate customer due diligence (CDD) information on your new and existing customers. Verifying client identity and reporting suspicious activity are the two cornerstones of the AML/CFT (anti-money laundering and countering financing of terrorism) regime.

CDD is the process through which you develop an understanding about your customers and the ML/TF risks they pose to your business. Verifying information about your customer’s identity, beneficial owners, and representatives is very important to help protect your business from ML/TF.

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The Dirty Money Series #7: Preparing the AML/CFT programme

By Dacreed on Jun 3, 2019 3:31:00 PM

Once a reporting entity (a business covered by the AML/CFT regime) completes its risk assessment, it must then put in place an AML/CFT (Anti-money laundering and countering financing of terrorism) programme that manages and mitigates these risks. A compliance programme has a direct relationship with the business risk assessment and must be based on it. When evaluating your programme (and risk assessment), supervisors and auditors will want to explore both its adequacy and effectiveness.

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The Dirty Money Series #6: Conducting a risk assessment

By Dacreed on May 27, 2019 1:29:00 PM

The foundation of a business’ AML/CFT (anti-money laundering and countering financing of terrorism) regime is an adequate and effective risk assessment. Businesses covered by the AML/CFT regime (known as reporting entities) have to assess the risk of money laundering and financing of terrorism they may reasonably expect to face in the course of business. This is called a risk assessment and must be done before creating an AML/CFT compliance programme.

It involves identifying the inherent risks faced by your business. ‘Inherent’ risks are those that exist before the controls required by the AML/CFT regime are put into place in your business.

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The Dirty Money Series #5: Appointing a compliance officer

By Dacreed on May 21, 2019 1:23:00 PM

Businesses covered by the AML/CFT (anti-money laundering and countering financing of terrorism) regime are known as reporting entities. If you operate a business that is a reporting entity you need to appoint a compliance officer to administer and maintain your AML/CFT programme.

The AML/CFT compliance officer is a key role in any organisation and any appointment to that role needs to be carefully considered. It is not a matter of simply assigning an employee, or yourself, to this role to demonstrate compliance with the Anti-Money Laundering and Countering Financing of Terrorism Act.

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The Dirty Money Series #4: If your business is covered by the AML/CFT regime, what do you have to do?

By Dacreed on May 16, 2019 2:26:00 PM

The AML/CFT (anti-money laundering and countering financing of terrorism) regime helps businesses take precautions against people who would seek to misuse the business for criminal gain. It aids in protecting the professional reputation of businesses in both NZ and international markets. In order to achieve these goals, the regime requires businesses covered by the Anti-Money Laundering and Countering Financing of Terrorism Act to put systems and processes in place to prevent criminals from trying to exploit any perceived vulnerabilities in those businesses.

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The Dirty Money Series #3: The Gatekeepers

By Dacreed on May 13, 2019 2:25:00 PM

Legitimate businesses have a contributing role in preventing the misuse of financial and professional services. Businesses operating in the financial, legal, property and high-value goods markets are at the frontline for countering criminal activity in NZ. They are the gatekeepers.

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The Dirty Money Series #2: How dirty money is cleaned

By Dacreed on May 6, 2019 11:39:09 AM

When criminals make money from illegal activities such as fraud, drugs and tax evasion they need to ‘clean’ it in order to spend it in the legal economy. They need to convert the proceeds of crime so that they can realise and enjoy the financial benefits of their offending.

Money laundering is a process that cleans illegally obtained funds of their dirty criminal origins. The money is laundered so it looks like it comes from a legitimate source, enabling criminals to cover their tracks and avoid being detected. Successful money laundering allows criminals to enjoy profits and furthers the cycle of criminality by making funds available for reinvestment in crime.

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The Dirty Money Series #1: Money laundering – how big is it here?

By Dacreed on Apr 23, 2019 2:18:00 PM

Money laundering is happening every day all over the world. And New Zealand is not immune. In fact it would surprise most New Zealanders to learn that money laundering is big here, very big. More than $1.35 billion in proceeds from drug dealing and fraud is laundered every year through legitimate NZ businesses. This is just the ballpark figure for 2018. 

The actual transactional value of money laundering is likely to be several times that amount, as launderers move funds through multiple transactions. And the reality is that the true cost to the country, which includes the social cost of the organised crime and the suffering it causes, is estimated to be a great deal higher.

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Proactively train your staff in AML/CFT

With the Dacreed online compliance training system you can:

  • assess your team’s knowledge, application and retention of AML/CFT training
  • keep track of your team’s completion dates and completion rates
  • tailor the training for different employees depending on their roles and tasks

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