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

Ministerial Exemption: AMP (NMLA) New Zealand Superannuation Scheme

1. In my capacity as the Associate Minister of Justice and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), I exempt the trustees of the AMP (NMLA) New Zealand Superannuation Scheme (“Scheme”) from the provisions of Part 2 of the Act in relation to services provided as trustees of the Scheme.
2. This exemption is subject to the following conditions:
   1. Subject to paragraphs 3 and 4 below, the Scheme’s trust deed may not enable members to contribute to the Scheme voluntarily other than through payroll (which means, for the purposes of this exemption, by way of deduction from Salary as defined in the trust deed for the Scheme).
   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 for the purpose of purchasing additional pensionable service, provided that the Scheme undertakes enhanced customer due diligence on every member who applies to purchase any additional service by making such contributions.
4. The trust deed for the Scheme may permit contributions to be made to the Scheme other than through payroll by a member during a permitted period of unpaid leave of absence (Regular Leave of Absence Contributions) where:
   1. a Participating Company (as defined in the trust deed of the Scheme) 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 10–17 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 10–17 of the Act (and for the purposes of section 14(d) of the Act the first such withdrawal 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. the Scheme is permanently closed to new members;
   4. 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
   5. 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 (13 June 2015).
9. This exemption will expire on 30 June 2018.

Ministerial Exemption: Employee Retirement Plan

1. In my capacity as the Associate Minister of Justice and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), I exempt the trustee of the Employee Retirement Plan (“Plan”) from the provisions of Part 2 of the Act in relation to services provided as trustee of the Plan.
2. This exemption is subject to the following conditions:
   1. Subject to paragraphs 3 and 4 below, the trustee must remove any mechanisms contained in the Employer Agreement between the trustee and the Secretary for Education that enable members to contribute to the Plan voluntarily other than through payroll. This includes the ability of the trustee to accept contributions in any form, in its absolute discretion.
   2. The Plan 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 Plan (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 sections of the Plan which are subject to restrictions set out in the complying fund rules (as defined in section YA 1 of the Income Tax Act 2007), provided there is a cap on any non-payroll voluntary contribution. The cap should be set at the amount (after taking into account any contribution through payroll) required to enable a member to maximise those government contributions set out in section MK 4 of the Income Tax Act 2007.
4. The trust deed for the Plan may permit contributions to be made to the Plan other than through payroll by a member during a permitted period of unpaid leave of absence (Regular Leave of Absence Contributions) where:
   1. the employer or the Plan’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 Plan 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 10–17 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 10–17 of the Act (and for the purposes of section 14(d) of the Act the first such withdrawal 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 Plan 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 (17 June 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 by emailing international.crime@justice.govt.nz