LawFuel -The Law Jobs and Legal NewsWire

http://www.lawfuel.co.nz/releases/release.asp?NewsID=2080

24 September 2010 - The consultation timeframe allowed for draft regulations and codes of practice related to new anti-money laundering legislation is of some concern to the New Zealand Law Society.

In a submission on a Ministry of Justice consultation document on regulations and codes of practice for the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, the Society says it supports the implementation of the new regime and the manner in which the ministry and regulators have sought industry and professional feedback.

However, the Society says the consultation document indicates that it is expected that final decisions will be made on the regulations in September, and the regulations gazetted in December 2010.

“The Society considers that consultation on the draft regulations is essential and that sufficient time should be allowed for this,” it says. “The regulations will deal with a number of matters in more detail than the consultation document. In addition, in some instances new obligations will be introduced by the regulations (such as the inclusion of trust and company service providers as reporting entities.”

The Society says a consultation period of less than five weeks would be undesirable with respect to the draft regulations, and the ministry’s practice of inviting interested parties to meet with it to discuss any concerns they have should apply.

The submission says the Law Society supports the introduction of the Act, with progressive implementation of obligations. It says the proposed timeframe of two years from the gazetting of regulations for all obligations under the Act to take effect for Tranche One entities, will provide entities with a realistic timeframe for undertaking risk assessments, and preparation and implementation of compliance programmes