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 exemption from the Act:
Ministerial exemption: Fonterra Farmer Custodian Limited (NZBN: 9429030469969)
- As the Associate Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, I exempt Fonterra Farmer Custodian Limited (FFCL) from the following provisions of the Act:
- Sections 10 to 71 inclusive.
- This exemption is made subject to the following conditions:
- FFCL must inform the Ministry of Justice of any changes that may affect the exemption and/or conditions within 14 days from when the change affecting the exemption occurs.
- The exemption has been made for the following reasons:
- FFCL’s sole purpose is to hold shares in Fonterra and Economic Rights on trust for the Unit Trustee, Fonterra and participants in the Fonterra Shareholders’ Market, to enable the Trading Among Farmers scheme to operate. FFCL is not able to itself liquidate the shares in Fonterra or the Economic Rights that it holds on trust. FFCL also hold the initial settlement amount (totalling $20) of certain Trusts on trust for Fonterra.
- The Fonterra Shareholders’ Market is a private market which is only available to farmer shareholders and FFCL, and therefore is low risk.
- The compliance costs faced by FFCL outweigh the low risk of money laundering and the financing of terrorism associated with the FFCL’s activities.
- This exemption came into force on 7 February 2018.
- This exemption will expire on 30 November 2022.
Any person wishing to provide comment on this notice should contact the Criminal Law Team at the Ministry of Justice by emailing firstname.lastname@example.org.