In accordance with section 157(6)(b) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“the Act”), the Minister of Justice hereby gives notice that she has granted the following exemptions from the Act:

Ministerial Exemption: Defence Force Superannuation Scheme

1. In my capacity as the Minister of Justice and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“the Act”), I exempt Trustees Executors Limited (“TEL”) from the provisions of Part 2 of the Act in relation to services provided in respect of promoting or operating the Defence Force Superannuation Scheme (“the Scheme”).
2. This exemption is subject to the following conditions:
1. Subject to paragraphs 3 and 4 below, TEL is required to remove any mechanisms contained in the trust deed for the Scheme that enable members to contribute to the Scheme voluntarily other than through payroll.
2. The Scheme must remain a registered superannuation scheme as defined under the Superannuation Schemes Act 1989 or registered under the Financial Markets Conduct Act 2013 as applicable.
3. With the exception of Australian superannuation transfers to the Scheme (if applicable), customer due diligence in accordance with sections 10–36 of the Act and suspicious transaction reports in accordance with sections 40–48 of the Act and, where the transaction is relevant to a suspicious transaction report, transaction records in accordance with section 49(1) and (2)(a)–(f) of the Act are required on all contributions and transfers to the Scheme from international sources.
3. The Trust Deed may permit voluntary contributions made other than through payroll to those categories of the Scheme which are subject to restrictions set out in the complying superannuation fund rules, provided there is a cap on the amount of any non-payroll voluntary contributions made in each year. The cap should be set at the amount (after taking into account any contribution through payroll) required to enable a member to maximise, in respect of that year, those government contributions set out in section MK 4 of the Income Tax Act 2007.
4. The trust deed of the Scheme may permit contributions to be made other than through payroll by a member to the Scheme during a permitted period of unpaid leave of absence (Regular Leave of Absence Contributions) where:
1. The employer or the Scheme’s administrator collects those contributions; and
2. the contributions do not exceed (as to either amount or frequency) the contributions that were being paid by the relevant member in accordance with the trust deed for the Scheme immediately prior to the member commencing leave of absence.
5. Where any Regular Leave of Absence Contributions are received from international sources during the permitted period of unpaid leave of absence, the following sections of the Act apply to such contributions:
1. Sections 10–18 of the Act (and for the purposes of section 14(d) of the Act the receipt of a contribution from an international source is specified as a circumstance in which standard customer due diligence must be conducted);
2. sections 40–48 of the Act;
3. where the transaction is relevant to a suspicious transaction report, sections 49(1) and 2(a)–(f) of the Act; and
4. sections 92–100 of the Act.
6. Where any withdrawals are made by a member in addition to that member making Regular Leave of Absence Contributions during the permitted period of unpaid leave of absence, the following sections of the Act apply to such withdrawals and contributions:
1. Sections 10–18 of the Act (and for the purposes of section 14(d) of the Act the receipt of a contribution from an international source is specified as a circumstance in which standard customer due diligence must be conducted);
2. sections 40–48 of the Act;
3. where the transaction is relevant to a suspicious transaction report, sections 49(1) and (2)(a)–(f) of the Act; and
4. sections 92–100 of the Act.
7. The exemption has been granted for the following reasons:
1. The Scheme poses a very low risk of money laundering or terrorist financing;
2. any risks posed by voluntary contributions outside of payroll have been addressed by the conditions;
3. due to the very low money laundering and terrorist financing risks raised by the Scheme and the significant compliance costs that would arise from not granting this exemption, I consider that any benefits of requiring compliance with the Act are not justified by the associated costs; and
4. this exemption is consistent with (and has no effect on the purpose or intent of) the Act, the Financial Transactions Reporting Act 1996 and New Zealand’s international obligations as a member of the Financial Action Task Force and the Asia Pacific Group on Money Laundering.
8. This exemption came into force on the day after the date I granted this exemption (28 January 2015).
9. This exemption will expire on 30 June 2018.

Any person wishing to provide comment on these notices should contact the Criminal Law Team at the Ministry of Justice: international.crime@justice.govt.nz