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

Ministerial Exemption: Smartshares Limited

1. 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 Smartshares Limited (“Smartshares”) from the following provisions of the Act:
   1. sections 16(2) and 16(3); and
   2. sections 24(2) and 24(3).
2. In this exemption, unless the context otherwise requires:

Compulsory Contributions means contributions made by members of the Nauru Super Scheme pursuant to section 26 of the Nauru Superannuation Act 2018;

Exempt Member means a member of the Smartshares Scheme who is an individual natural person and who is also a member of the Nauru Super Scheme;

Nauru Super Scheme means the Nauru Government’s superannuation scheme established under the Nauru Superannuation Act 2018;

Permitted Withdrawals means a withdrawal of compulsory contributions where:

1. the member reaches age 55 or ceases employment (whichever is later); or
2. the member suffers total and permanent disablement as defined in section 35 of the Nauru Superannuation Act 2018; or
3. the member dies.

Smartshares Scheme means a scheme registered under the Financial Markets Conduct Act 2013 managed by Smartshares; and

Voluntary Contributions means contributions made by members of the Nauru Super Scheme pursuant to section 27(4) of the Nauru Superannuation Act 2018.

3. This exemption is made subject to the following conditions:
   1. The exemption only applies where Smartshares is accepting members of the Nauru Super Scheme as members of the Smartshares Scheme and only to Exempt Members where an employer facilitates the Exempt Member’s membership of the Smartshares Scheme;
   2. The Smartshares Scheme’s governing documents provide that Permitted Withdrawals can only be made by and to the Exempt Member, or, if the Exempt Member dies, to the beneficiary elected by the Exempt Member or otherwise in accordance with Nauru law;
   3. Smartshares verifies an Exempt Member’s customer information in accordance with section 16(1) and section 24(1) (as appropriate) of the Act before any payment is made to that Exempt Member;
   4. Smartshares verifies an Exempt Member’s customer information in accordance with section 16(1) and section 24(1) (as appropriate) of the Act before it accepts a direct lump sum voluntary contribution from that Exempt Member; and
   5. Smartshares 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 when the change affecting the exemption occurs.
4. The exemption has been made for the following reasons:
   1. There is a low risk of money laundering and terrorism financing through Smartshares because:
      1. Funds are only received through the New Zealand or Australian banking system which are subject to their own AML/CFT obligations.
      2. Exempt Members’ funds will be subject to restrictions and while not registered under the Financial Markets Conduct Act 2013 as a superannuation scheme or KiwiSaver scheme, the Nauru Super Scheme will contain similar restrictions.
      3. Public Trust and Financial Markets Authority provide independent oversight of Smartshares and its invested schemes.
      4. Smartshares undertake transaction monitoring for Exempt Members allowing for detection, investigation and prosecution of any offences.
      5. Suspicious activity can be easily detected due to the nature of the scheme being regular contributions from an Exempt Member’s employment.
      6. Any transactions inconsistent with the purpose of the Overseas Superannuation Scheme will be investigated or escalated to Smartshares’ AML Compliance Officer.
   2. The exemption granted has a low impact on prevention, detection, investigation, and prosecution of offences in alignment with section 157 of the Act.
   3. The obligations imposed on Smartshares would be disproportionate given the low risk of money laundering and financing of terrorism.

5. This exemption comes into force on the day after the date I granted this exemption (17 February 2026).
6. This exemption will expire five years from the date it comes into force.

Any person wishing to provide comment on this notice should contact the AML/CFT Team at the Ministry of Justice by emailing amlcft.exemptions@justice.govt.nz.