We are delighted to have this afternoon received the following update in response to our Property 101 Group and SCA(NZ) Submissions regarding the AML exemptions & will keep you posted once finalised.

 

Dear Joanne,

Thank you for your submission on the AML/CFT class exemption referred to above, which expires 30 June 2018.

Recommendation made:

On 2 May, the Ministry made its recommendation to the Associate Minister of Justice, Hon Aupito William Sio, which is summarised below:

The Ministry proposes the renewal of this class exemption which currently exempts bodies corporate from all the provisions of the Act in relation to any relevant services provided while carrying out any management, financial, or administrative functions relating to the body corporate and the unit title development in accordance with the Unit Titles Act 2010 or the Unit Titles Regulations 2011.

Furthermore, it would continue to exempt body corporate managers from sections 10-71 of the Act in relation to any relevant services provided whilst carrying out management, financial, or administrative functions and services on behalf of a body corporate.

The Ministry further recommends widening the scope of the exemption to include lawyers and accountants, but only in circumstances when performing the services of a body corporate manager. This ensures there is no discrepancy between AML/CFT Phase I and Phase II entities who are performing the same activities.

The term of the exemption recommended is the longest period available under the Act, being 5 years from the date of enactment.

Please note that this recommendation is subject to the Associate Minister’s decision and following consultation with the Ministers’ AML/CFT colleagues being the Minister of Finance, Minister of Internal Affairs and Minister of Commerce and Consumer Affairs.

For public certainty and to allow time for publication and enactment, the Ministry has requested the Minister reach his decision by 1 June 2018.

Notice:

The Ministry has taken into consideration comments received from you and the DIA and amended the notice, attached here:

Please note that this notice will not come into effect until approved by the Minister and is still subject to drafting changes by Parliamentary Counsel Office.

We will keep you updated in relation to progress on the class exemption.

Kind regards,