AML/CFT implementation


Post the release of the Panama Papers and the Sherwin Inquiry (amongst other things), the government has responded to restore New Zealand’s reputation as a transparent and low risk market by extending the requirements of the Anti-Money Laundering and Countering Finance of Terrorism Act 2009 to accountants in public practice from 1 October 2018. This webinar series will give you tools, skills and practical insights to implement the new AML/CFT requirements in your practice, from initial risk assessment to reporting processes.

Content Description:



Post the release of the Panama Papers and the Sherwin Inquiry (amongst other things), the government has responded to restore New Zealand’s reputation as a transparent and low risk market by extending the requirements of the Anti-Money Laundering and Countering Finance of Terrorism Act 2009 to accountants in public practice from 1 October 2018.


This webinar series will give you tools, skills and practical insights to implement the new AML/CFT requirements in your practice, from initial risk assessment to reporting processes.


Please note that the AML/CFT Act is activity based. Only accountants who provide certain services will need to develop an AML/CFT programme to ensure that they comply with requirements of the AML/CFT Act – please see here.



Session Description:



Webinar 1: Introduction, compliance obligations and the role of the Compliance Officer

What are your compliance obligations under the AML/CFT Act? What is the role of the compliance officer? Responsibility for administering and maintaining the AML/CFT programme rests with the practice’s compliance officer.


This session provides an overview of your compliance obligations under the AML/CFT Act before introducing the role and obligations of the compliance officer. Highlights include:

  • The purpose and aims of the AML/CFT Act
  • Services in scope, exemptions and definition of the ‘ordinary course of business’
  • Introduction to the compliance obligations:
  • Appointment of a compliance officer
  • Risk Assessment
  • AML/CFT Programme
  • Annual Report and external audit
  • Responsibilities and obligations of the compliance officer (who should fulfil this role)
  • Designated Business Groups


Webinar 2: Risk Assessment

How exposed is your practice to money laundering or financing of terrorism? The risk assessment is the critical first step to compliance with the AML/CFT Act, and provides the foundation for your practice’s entire AML/CFT regime.


This session will discuss the key components of a risk assessment and the information and resources you should gather to complete one. It will also discuss the aspects of an accounting practice that may be exposed to ML/FT. Highlights include:

  • Minimum legal requirements for the Risk Assessment
  • Sources of information for completing the Risk Assessment
  • Guidance available for structuring and completing the Risk Assessment
  • Risk assessment methodologies
  • Level of detail required in the Risk Assessment
  • Requirements for reviewing and updating the Risk Assessment


Webinar 3: AML/CFT Programme

How are you going to manage you exposure to ML/FT? The AML/CFT programme is essential to compliance with the AML/CFT Act. It documents the policies, procedures and controls you have to manage the risks identified in your risk assessment and serves as an operating manual of how your practice will comply with the requirements of the AML/CFT Act.


This session will discuss the key components of an AML/CFT programme. Highlights include:

  • Minimum legal requirements for the AML/CFT Programme
  • Guidance available for structuring the AML/CFT Programme
  • Risk-based compliance and alignment to the Risk Assessment
  • Level of detail required in the AML/CFT Programme (Policies, Procedures and Controls)
  • Alignment to existing policies
  • Requirements for reviewing and updating the AML/CFT Programme


Webinar 4: Customer Due Diligence

Do you know your client? What ML/FT risk could they pose to your practice?

Obtaining and verifying the identity of your clients is a cornerstone of the AML/CFT Act and therefore a core component of the AML/CFT programme.


This session discusses all you need to know about the CDD requirements of the AML/CFT Act and how to best implement them in practice. Highlights include:

  • What a business relationship means and when it starts
  • Who to conduct CDD on and when
  • The different levels of CDD (simplified, standard and enhanced), when each is required and examples of information requirements
  • Ongoing monitoring and CDD requirements
  • How to use the Identity Verification Code of Practice
  • When you can rely on others for CDD
  • International transactions and Politically Exposed Persons
  • What to do if you cannot complete CDD


Webinar 5: Records, Reporting and Audit

Who do you tell about your AML/CFT programme and what do you need to tell them?

The outputs of your AML/CFT programme are reports: an annual report to the DIA for their monitoring purposes, and suspicious activity reports and prescribed transaction reports to the FIU so they can gather intelligence. A two yearly audit of your risk assessment and AML/CFT programme is also required.


This session discusses the various reports required by the AML/CFT Act. It also describes the audit and record keeping requirements. Highlights include:

  • Internal review and reporting requirements
  • External audit requirements
  • Annual reporting to the DIA
  • Suspicious Activity and Prescribed Transaction definitions and reporting
  • Suspicious Activity Reports - NOCLAR, Non-disclosure and confidentiality requirements
  • Record keeping requirements



Learning Outcomes:

Upon satisfactory completion of this webinar series you will be able to:

Webinar 1: Introduction, compliance obligations and the role of the Compliance Officer

  • Explain what AML/CFT Act is designed to achieve
  • Describe in general terms your practice’s compliance obligations under the AML/CFT Act.
  • Explain the role and obligations of the compliance officer.

Webinar 2: Risk Assessment

  • Explain the key components of a risk assessment and the information and resources you should gather to complete one.
  • Identify aspects of your practice that may be exposed to ML/FT.
  • Explain how these aspects should be reflected in your risk assessment.
  • Develop your draft risk assessment taking into consideration the challenges and pitfalls discussed.
  • Develop a strategy to ensure that your risk assessment is kept up to date.

Webinar 3: AML/CFT Programme

  • Explain the key components of an AML/CFT programme.
  • Identify how the risks identified in the risk assessment will be addressed by the practice including the internal policies, procedures and controls required.
  • Develop your draft AML/CFT programme taking into consideration the challenges and pitfalls discussed.
  • Develop a strategy to ensure that your AML/CFT programme is kept up to date.

Webinar 4: Customer Due Diligence

  • Understand who you need to do CDD on and when you need to do it.
  • Identify what client information is required to conduct CDD and what documents are required to verify this information.
  • Describe the three different levels of CDD and identify when each can be used depending on the type of client and services provided.
  • Update your client acceptance/continuance process to ensure compliance with the AML/CFT Act and reflect those policies, procedures and controls in your AML/CFT programme .
  • Describe how to do ongoing CDD and regularly review the business relationship.
  • Develop a strategy to identify if there is a material change with existing clients and reflect those policies, procedures and controls in your AML/CFT programme.

Webinar 5: Records, Reporting and Audit

  • Explain what needs reporting and to who.
  • Describe what a suspicious activity and a prescribed transaction are.
  • Understand how to make the necessary reports including what internal policies, procedures and controls should be put in place.
  • Explain the non-disclosure and “tipping” off rules.
  • Explain the audit requirement and describe who can be appointed as an auditor.
  • Explain how the NOCLAR rules in the Code of Ethics allow these reporting requirements to override the duty of confidentiality.
  • Describe the AML/CFT record keeping requirements.


Benefits:

AML/CFT specialists will step you through the practical implementation of AML/CFT requirements which should leave you well prepared to comply with your legal obligations, avoid liability and minimise compliance costs. You will also be provided with an opportunity to pose AML/CFT related questions to the Presenter.

Martyn Solomon is an Associate Partner at Crowe Horwath. He is a Chartered Accountant, Chartered Internal Auditor (IIA UK), and Certified Anti-Money Laundering Specialist (ACAMS) with 20 years assurance experience.

Martyn specialises in internal audit and AML/CFT compliance and and leads the AML/CFT advisory and audit team at Crowe Horwath in New Zealand. He has also worked on a number of joint AML projects with Crowe Horwath’s US and UK AML/CFT specialist teams.

Martyn currently provides AML/CFT audit and compliance services to a wide range of clients including payment platform providers, casinos, money services businesses, life insurers, collective investment schemes, financial leasing providers, financial advisers and non-deposit taking lenders.

Martyn was also a member of the CA ANZ working group for the accounting profession’s implementation of the AML/CFT Act in New Zealand.


EVENT DETAILS


Topic: Corporate Finance, Ethics & Integrity, Reporting

Sub-Topic: Business Reporting, Governance, Risk Management

Format: Recorded Webinar

Proficiency Level: Foundation, Intermediate

CPD: 5 hours