Financial organisations required to report suspicious transactions under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act are advised of new guidelines which broaden what is required to be reported.
The Suspicious Activity Reporting (SAR) Guideline replaces the Suspicious Transaction Reporting Guidelines published in 2013.
From 1 July, the scope of reporting for suspicion will shift from specific transactions to a wider range of suspicious activity.
For example, SARs could include activity such as the change of ownership for a shell company shifting assets, without the need for a transaction to have taken place.
The new guideline is published online to give reporting entities time to adjust to the new requirements. It is available on the Police website here
The published guideline outlines reporting entities’ obligation to submit SARs, and sets out the indicators of money laundering.
It also sets out reporting entities’ obligation to prevent and detect terrorism financing under the AML/CFT Act and the Terrorism Suppression Act.
“Ensuring that suspicious activity in the sector is notified ensures that any possible crime has the best chance of being stopped.
“While one or more indicators of suspicious activity do not necessarily indicate criminal offending, any number of indicators can trigger suspicion, and Police want to hear about these,” says Andrew Hill, Manager Financial Intelligence Unit (FIU).
If this suspicion exists, a SAR must be submitted to the New Zealand FIU.
This guideline draws on material produced by the New Zealand FIU, domestic partner agencies, the Financial Action Task Force, and international FIUs.
ENDS
Issued by the Police Media Centre