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Notice Type
Departmental
Notice Title

Ministerial Exemptions Under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009

Publication Date
27 Jun 2023

Tags

Anti-Money Laundering and Countering Financing of Terrorism Act Ministerial exemptions Justice

Notice Number

2023-go2799
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PDF (25 KB)

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

Ministerial Exemption: Snap-On Tools (New Zealand) Limited

1. As the Associate Minister of Justice and pursuant to section 157 of the Act, I exempt the Snap-On Tools (New Zealand) Limited (“STL”) from:

  1. Sections 10–39, 49(3) and 50–71 of the Act.

2. The exemption is subject to the following conditions:

  1. STL is required, in accordance with sections 23 and 24 of the Act, to undertake enhanced customer due diligence on the customer if they are required to report an activity, or suspicious activity, under section 40(3) of the Act:
  2. in circumstances where thresholds are met, STL must submit prescribed transaction reports to the Commissioner; and
  3. STL must inform the Ministry of Justice of any changes that may affect the exemption and/or conditions imposed by this written instrument within 10 working days from which the change affecting the exemption occurs.

3. I approve the exemption with these conditions because, on balance, I consider STL to be a low risk of money laundering or terrorism financing (“ML/TF”), as set out below:

  1. STL’s core business is selling Snap-On products. The provision of credit is a small, incidental part of its business.
  2. The provision of credit to franchisees is only for the establishment of their Snap-On business or to end buyers allowing them to buy Snap-On products.
  3. STL would ordinarily fit within an existing exemption for credit provided by non-finance businesses under Regulation 13 of the AML/CFT (Exemptions) Regulations 2011. However, STL does not fit into the existing exemption due to a technical anomaly with STL’s unique corporate structure.
  4. STL has monitoring systems in place to mitigate any residual ML/TF risk.

4. The exemption comes into force on 30 June 2023.

5. The exemption will expire on 30 June 2028.

6. Any person wishing to provide comment on this notice should contact the Criminal Law Team at the Ministry of Justice by emailing exemptions@justice.govt.nz.