Extension of Exemption under AML-CFT Regulations granted
Anti-Money Laundering and Countering Financing of Terrorism Exemption for Bodies Corporate and BC Service Providers.
In March we notified members of the submission that BCCG had made to Ministry of Justice to seek an extension to 30th June 2023 of an existing Exemption that was expiring on 30th June 2018. We have just been advised that the extension has been granted
In practical terms, this means that financial activities of bodies corporate in relation to day to day running of the BC are not subject to AML/CFT Regulations in respect to the reporting of individual transactions over $10,000.
A number of other parties involved in the Body Corporate Sector had also made detailed submissions on this matter and we wish to acknowledge in particular the encouragement provided by Liza Fry-Irvine, a partner at Pidgeon Law, in this process.
The extension has been granted as follows:
- For Bodies Corporate registered under UTA (1972 and 2010) – a full unconditional exemption granted to 30 June 2023.
- For Body Corporate Managers and lawyers and accountants (whilst carrying out management, financial, or administrative services or functions and services on behalf of a body corporate) – a conditional exemption to 30 June 2023 has been granted.
- The scope of this conditional exemption covers only those functions and services that a body corporate would otherwise provide to its constituent owners in accordance with the UT Act or UT Regulations.
- The condition that Body Corporate Managers and lawyers and accountants must meet is that in carrying out any functions and services on behalf of a body corporate they must adhere to all duties and other requirements contained in the UT Act, the UT Regulations and any other relevant legislation as if they were acting as the body corporate itself.
The full text of the Exemption can be viewed here or found at http://www.legislation.govt.nz/regulation/public/2018/0101/latest/LMS52466.html?src=qs
