Capture under the AML/CFT Act is based on activity (rather than the level of ML/TF risk). This is because, increasingly, legitimate businesses in industries perceived as low risk are used as intermediaries in the various phases of money laundering. Low risk businesses may be seen as attractive for illicit activity due to the perception of lesser AML/CFT awareness and fewer controls in place. It is important that you assess the ML/TF risk your business faces, and then apply suitable and proportionate measures to mitigate the risks identified.
However, there are provisions in the AML/CFT Act that allow you to apply for a ministerial exemption from some or all of your AML/CFT obligations, under certain circumstances. The Ministry of Justice administer the exemptions process. The criteria that the Minister of Justice must have regard to when making their decision is outlined under section 157 of the AML/CFT Act. This includes but is not limited to the risk of money laundering and financing of terrorism associated with the reporting entity. Please note that the exemptions process is thorough and you will need to consider all the factors outlined under section 157 of the AML/CFT Act. The Ministry of Justice may also require additional information from you to inform its analysis on your application.
However, there are provisions in the AML/CFT Act that allow you to apply for a ministerial exemption from some or all of your AML/CFT obligations, under certain circumstances. The Ministry of Justice administer the exemptions process. The criteria that the Minister of Justice must have regard to when making their decision is outlined under section 157 of the AML/CFT Act. This includes but is not limited to the risk of money laundering and financing of terrorism associated with the reporting entity. Please note that the exemptions process is thorough and you will need to consider all the factors outlined under section 157 of the AML/CFT Act. The Ministry of Justice may also require additional information from you to inform its analysis on your application.
Further information on ministerial exemptions can be found on the Ministry of Justice’s website here: AML/CFT information for businesses - ministerial exemptions (Ministry of Justice website)