AML - General Flashcards
In what circumstances are accountants required to report large cash transactions of $10,000 or more or international wire transfers of $1,000 or more from October 1 2018?
When they are a reporting entity under AML.
Where is the Financial Intelligence Unit located in New Zealand?
Within the New Zealand police.
What acronym is used for the Financial Intelligence Unit?
FIU
What does the FIU provide?
Financial Intelligence
The FIU provides financial intelligence in relation to suspicious transactions, money laundering, the financing of terrorism and what?
Other serious offences.
The FIU provides financial intelligence in relation to suspicious transactions, money laundering, other serious offences and what?
Financing of terrorism.
The FIU provides financial intelligence in relation to suspicious transactions, financing of terrorism and other serious offences and what?
Money Laundering
The FIU provides financial intelligence in relation to financing of terrorism and other serious offences and what?
Suspicious Transactions
Where are the functions and powers of the FIU set out?
in the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (AML/CFT Act).
What does the FIU help the New Zealand government fulfill its obligation to?
The Inter-Governmental Financial Action Task Force
Other than the inter-governmental Financial Action Task Force and the prevention and detection of serious crime, what else does the FIU assist the New Zealand government to fulfill its obligation to?
The Government’s organised crime strategy.
The FIU collects and collates information provided by whom?
External parties and reporting entities.
Who does the FIU especially get information from?
The banks and other financial institutions
After the required analysis, intelligence products are sent to other investigative and intelligence units within who?
Police, sector supervisors, domestic partner agencies and to relevant international agencies.
Other than Suspicious transaction reports, suspicious property reports and border cash reports, what else is the main source of information for the FIU?
Prescribed transaction reports
When did the FIU start collecting prescribed transaction reports from?
November 2017
Other than Suspicious transaction reports, suspicious property reports and prescribed transaction reports, where else does what else is the main source of information for the FIU?
Border cash reports
Other than Suspicious transaction reports, prescribed transaction reports and border cash reports, where else does what else is the main source of information for the FIU?
Suspicious property reports
Other than Suspicious property reports, prescribed transaction reports and border cash reports, where else does what else is the main source of information for the FIU?
Suspicious transaction reports
Other than the Reserve Bank of New Zealand and the Financial Markets Authority, who else monitors the reporting entities within different sectors?
The Department of Internal Affairs.
What is a word which means a classification according to general type, especially in archaeology, psychology, or the social sciences?
Typology
What is a typology?
A classification according to general type, especially in archaeology, psychology, or the social sciences.
What typologies does the FIU produce?
Typologies of money laundering and financing of terrorism transactions.
What are the typologies produced by the FIU, produced in?
A quarterly report.
What is the Egmont Group?
A united body of 155 Financial Intelligence Units (FIUs) from across the world.
What does the Egmont Group provide?
A platform for the secure exchange of expertise and financial intelligence to combat money laundering and terrorist financing.
When was the Egmont Group formed?
In 1995
How did the Egmont Group get its name?
From the Egmont Arenberg Palace in Brussels, where the first meeting took place.
What forms the bulk of the FIU?
The analytics team.
What does the NIA stand for under AML?
National Intelligence Application
Who uses the NIA under AML?
The police
How do the police use the NIA?
To determine details such as whether previous criminal history.
What is a STR under AML?
Suspicious transaction report
What is the acronym for Suspicious Transaction Report?
STR
What is a section 143A under AML?
An official request for information.
What is an official request for information under AML called?
A section 143A request.
Where are cash dogs used?
At the airport.
What are cash dogs used for?
Sniffing out people carrying large amounts of cash.
Are trusts considered a risk under AML?
Yes
When are trusts especially considered a risk under AML?
When there are overseas people involved.
What is a SAR under AML?
Suspicious Activity Report?
What is a PTR under AML?
A prescribed transaction report.
What are accountants allowed to do with respect to their clients? With respect to AML.
Ask them questions.
What are accountants not allowed to do with respect to their clients with respect to AML?
Tell them they’re going to file a report.
Why is an accountant telling their clients that they are going to file a report, illegal with respect to the AML?
Its considered to be ‘tipping off’.
What is an example of a legitimate question for accountants to ask their clients under AML?
What is the reason for their structure.
What is the TSA?
Terrorism Suppression Act.
What does ‘layering’ mean with regards to the AML?
The middle stages of money laundering.
What is a word for the middle stages of money laundering?
Layering
What is an AML / CFT Programme under section 5 of the AML / CFT Act?
A programme established under section 56(1) of the AML.
What are AML Requirements under section 5 of the AML / CFT Act?
Requirements set out in Part 2 of the AML Act.
What is an AML /CFT Supervisor in relation to a reporting entity?
The person referred to in section 130(1) who is responsible for supervising the reporting entity under parts 3 and 4.
What is the first type of reporting entity under section 5 of the AML / CFT Act?
A Casino
What is the second type of reporting entity under section 5 of the AML / CFT Act?
A designated non-financial business or profession.
What is the third type of reporting entity under section 5 of the AML / CFT Act?
A financial institution.
What is the fourth type of reporting entity under section 5 of the AML / CFT Act?
A high-value dealer.
What is the fifth type of reporting entity under section 5 of the AML / CFT Act?
The New Zealand Racing Board
Under part b) part i) of the definition of reporting entity, what type of person does a reporting entity also include?
A person or class of persons declared by regulations to be a reporting entity for the purposes of the AML Act.
Under part b) part ii) of the definition of reporting entity, what type of person does a reporting entity also include?
Any other person who is required by any other enactment to comply with the AML Act as if it were a reporting entity.
Under part c) of the definition of reporting entity, what type of person or class of persons is excluded from being a reporting entity?
Any person or class of persons declared by regulations not to be a reporting entity for the purposes of the AML Act.
What is an acronym which describes the types of businesses and professionals potentially considered reporting entities under AIM because of being considered a non-financial business or profession conducting activities in the ordinary course of business which come within the requirements of a reporting entity for AIM?
‘LCIART’
What is a potential method of remembering the acronym ‘LCIART referring to types of business coming within the requirements for AML’?
Large camels in a railway train
What does the ‘L’ stand for in LCIART?
Law Firm
What does the ‘C’ stand for in LCIART?
Conveyancing Practitioner
What does the ‘I’ stand for in LCIART?
Incorporated Conveyancing Firm
What does the ‘A’ stand for in LCIART?
Accounting Practice
What does the ‘R’ stand for in LCIART?
Real Estate Agents
What does the ‘T’ stand for in LCIART?
Trust and Company Service Provider
What acronym stands for the type of activities in the ordinary course of business which come within the requirements of AML?
FNRMRA
What is a potential method of remembering the acronym FNRMRA the type of activities in the ordinary course of business which come within the requirements of AML?
Friendly new rabbits munching red asparagus.
What does the ‘F’ stand for in FNRMRA?
Formation agents
What does the ‘N’ stand for in FNRMRA?
Nominee director. Nominee shareholder or trustee.
What does the first ‘R’ stand for in FNRMRA?
Registered Office
What does the ‘M’ stand for in FNRMRA?
Managing Client Funds
What does the second ‘R’ stand for in FNRMRA?
Real Estate Agency Work
What does the second ‘A’ stand for in FNRMRA?
Agent for Conveyancing
When does providing a registered office or business address not fit within the types of businesses and professionals potentially considered reporting entities under AML?
When that registered office or business address is ancillary to the provision of other services not coming within the definition of the requirements for AML.
What does managing client funds include and not include for the purposes of coming within AML?
It does not include sums paid as fees for professional services but does include managing of accounts, securities or other services.
What acronym describes transactions which come within the definition of AML even if not in the ordinary course of business when performed by a designated no financial business or profession?
RTTT
definition of AML even if not in the ordinary course of business when performed by a designated no financial business or profession?
Racing cars trailing touring trucks
What does the ‘R’ stand for in the AML acronym RTTT?
Real estate transactions
What does the first ‘T’ stand for in the AML acronym RTTT?
Transfer of beneficial interest in land or other real property.
What does the second ‘T’ stand for in the AML acronym RTTT?
Transactions in relation to buying or selling a business.
What does the third ‘T’ stand for in the AML acronym RTTT?
Transactions in relation to creating, operating and managing a legal person such as a company, and any other legal transaction.
What AML typologies involving accountants are considered to be a major risk by the FIU with major consequences of an increase?
Shell companies, nominees, trusts, 3rd parties etc
What is the first thing that accountants who are reporting entities required to do by 1 October 2018?
Appoint an AML / CFT Compliance Officer
What is the second thing that accountants who are reporting entities required to do by 1 October 2018?
Produce a risk assessment.
What is the second thing that accountants who are reporting entities required to do by 1 October 2018?.
Establish an AML/ EFT Programme
What is the first thing that that accountants who are reporting entities required to do as part of operations after 1 October 2018?
Vet and train employees.
What is the second thing that that accountants who are reporting entities required to do as part of operations after 1 October 2018?
Perform Customer Due Diligence.
What is the third thing that that accountants who are reporting entities required to do as part of operations after 1 October 2018?
Get an independent audit of Risk Assessment and AML / CFT Programme every two years.
What is the first thing that that accountants who are reporting entities required to do as part of reporting, after 1 October 2018?
Report suspicious activities and prescribed transactions.
What is the second thing that that accountants who are reporting entities required to do as part of reporting, after 1 October 2018?
File an annual report
What is the first reason it is necessary that AML applies to accountants?
Evidence based support from past and current cases.
What is the second reason it is necessary that AML applies to accountants?
Professional facilitators are a significant feature of serious criminal offending.
What is the third reason it is necessary that AML applies to accountants?
Professionals have vulnerabilities that criminals may take advantage of.
Other than as a form of investment, how are houses used by organised crime?
As ‘grow houses’.
What is required in this scenario?
An Accountant’s firm is the registered mailing and contact in New Zealand for:-
• Company ABC Limited based overseas in Panama;
• 4 directors;
• All directors are domiciled overseas.
- Do you know your Customer / client?
- Change in (Companies Act) legislation -requiring 1 director to reside in New Zealand unless he / she resides in Australia and is a director of a company incorporated in Australia.
What is required in this scenario?
• You have received a sum of money from a client;
• The client asks you to transfer some or all of the money to a third party;
• You transfer from your account to a third party.
- Do you know the origins of these funds?
* Could you be inadvertently be drawn into a criminal matter.
What acronym could be used with regards to AML and Shell Companies?
LAALCS
How could the acronym LAALCS with regards to AML be remembered?
Large apes are launching coal ships.
What does the first L stand for in the acronym LAALCS to do with Shell Companies?
Large number of companies registered with the same office address.
What does the first A stand for in the acronym LAALCS to do with Shell Companies?
Address supplied is a “Virtual Office”.
What does the second A stand for in the acronym LAALCS to do with Shell Companies?
Accounts / facilities opened / operated by company formation agents.
What does the second L stand for in the acronym LAALCS to do with Shell Companies?
Lack of information regarding overseas directors / beneficiaries.
What does the C stand for in the acronym LAALCS to do with Shell Companies?
Complex ownership structures.
What does the S stand for in the acronym LAALCS to do with Shell Companies?
Structures where there is no apparent legitimate economic or other rationale.
What is the 1st obligation under AML?
AML /CFT Risk Assessment
What is the 2nd obligation under AML?
AML /CFT Compliance Programme
What is the 3rd obligation under AML?
AML /CFT Annual Report
What is the 4th obligation under AML?
Independent Audits
What are 5 tools for conducting staff vetting?
- Police Check
- Reference Check
- Qualification Check
- Social Media Check
- Credit Check
Where a higher level of risk is identified, what must be conducted?
Enhanced Customer due diligence
When enhanced customer due diligence must be conducted, what needs to be collected?
Information relating to the source of funds and or wealth of the Customer.
Once information has been collected as part of Customer due diligence, what must be done?
Reasonable steps must be taken to verify that information based on the level of risk identified for each Customer.
When reasonable steps are taken to verify information collected as part of due diligence, what should those steps be based on?
The level of risk identified for each Customer.
What is an acronym for Customer Due Diligence?
CDD
What is Customer due diligence / CDD?
The process of verifying information supplied by Customers.
What should be done with respect to enhanced CDD?
Customers requiring it should be identified and your staff should be made aware of these.
Once Customers requiring enhanced CDD have been identified, what should be done with respect to your staff?
Your staff should be made aware of which Customers require enhanced CDD.
What item is missing from this checklist?
Customer Checklist
1/ _______ or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non-NZ resident personnel from jurisdiction / country that has insufficient AML / CFT system in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.
Trusts
What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for ___________________
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non-NZ resident personnel from jurisdiction / country that has insufficient AML / CFT system in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.
Holding personal assets
What is an acronym for Politically Exposed Persons?
PEPS
Where is information about Foreign Politically Exposed Persons (PEPS) obtained from?
A Central watchlist
What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ _____________________ from a central watchlist.
3/ Non-NZ resident personnel from jurisdiction / country that has insufficient AML / CFT systems in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.
Foreign Politically Exposed Persons (PEPS)
What items are missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/___________________ from jurisdiction / country that has ____________ in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or shares in bearer form.
Non-NZ resident personnel
has insufficient AML / CFT systems
What is considered a high-risk jurisdiction under AML?
One where dealing in drugs / corruption / ties to terrorism are common
What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non NZ resident personnel from jurisdiction / country that has insufficient AML /CFT systems in place.
4/ __________________________________
5/ Entities with nominee shareholders or shares in bearer form.
If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non NZ resident personnel from jurisdiction / country that has insufficient AML /CFT systems in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with _____________ or shares in bearer form.
Nominee shareholders
What item is missing from this checklist?
Customer Checklist
1/ Trusts or another vehicle for holding personal assets
2/ Foreign Politically Exposed Persons (PEPS) from a central watchlist.
3/ Non NZ resident personnel from jurisdiction / country that has insufficient AML /CFT systems in place.
4/ If a customer is known to come from a high-risk jurisdiction (known to deal in drugs / is corrupt or has ties to terrorism
5/ Entities with nominee shareholders or__________________.
Shares in bearer form
Other than for the 5 types of Customer identified, when else is enhanced CDD required?
When a Customer seeks to conduct a complex, unusually large or unusual pattern of transactions. With no apparent economic or lawful purpose. and in particular situations where your entity determines that the level of risk requires it.
Where is information concerning whether a simplified CDD would be appropriate?
In the AML / CFT Act.
Give examples of entities for whom a simplified CDD is permitted.
govt departments, public bodies, registered banks. Companies listed on the stock exchange
Where does guidance come from for identifying suspicious activities with respect to AML /CFT?
Sector risk assessments and guidance material provided by the NZ FIU or supervisors
What is the acronym used in some countries for ‘Know Your Customer’?
KYC
What does the acronym CDD stand for?
Customer due diligence
What type of persons is CDD always conducted on?
Natural Persons
When verifying name, date of birth and residential address, what is required?
That original supporting documents are sighted and that a copy is signed and dated to evidence that verification has occurred.
Sophie, an accountant is signing up a Customer, Alexander who needs assistance with the sale of his business.
To verify his name, date of birth and address details, Sophie asks for formal identification. Alexander shows his passport and a bank statement with his address.
What must Sophie look for to ensure that the bank statement is a valid form of identification?
The statement is less than 12 months old and shows a residential address (not a PO Box).
What is a beneficial owner?
A person who owns and / or controls your customer
Generally, what is the first element of being a beneficial owner?
Owns more than 25% of the Customer (There may be several who fall into this category).
Generally, what is the second element of being a beneficial owner?
Has effective control over a Customer and acts on their behalf.
Generally, what is the third element of being a beneficial owner?
On whose behalf a transaction is conducted.
Other than non NZ-resident customer from a jurisdiction / country that ha insufficient AML /CFT systems or measures in place, what type of Customers are considered to be of a higher risk?
Foreign politically exposed persons (PEPS) from a central watch list.
Other than PEPS, what type of Customer is considered to be of a higher risk?
Non NZ-resident customer from a jurisdiction / country that ha insufficient AML /CFT systems or measures in place.
Other than PEPS and non NZ-resident customer from a jurisdiction / country that ha insufficient AML /CFT systems or measures in place, what types of Customer are considered to be of a higher risk?
Customers from a high risk jurisdiction / country (ie is known to deal in drugs, is corrupt or has ties to terrorism)
Other than overseas Customers what types of entities are considered to e of higher risk?
Entities with nominee shareholders of shares in barer form.
What is a term which means using family members or third parties?
fronting
Which is the missing red flag for these general types of red flag?
- _____________________________________________
- Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
- Unrealistic wealth compared to client profile;
- Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
- Two or more persons with the same identification;
- One person using multiple identification documents.
Customers using family members or third parties (otherwise known as fronting);
Which is the missing red flag for these general types of red flag?
- Customers using family members or third parties (otherwise known as fronting);
- ____________________________________________
- Unrealistic wealth compared to client profile;
- Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
- Two or more persons with the same identification;
- One person using multiple identification documents
Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
Which is the missing red flag for these general types of red flag?
- Customers using family members or third parties (otherwise known as fronting);
- Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
- ___________________________________
- Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
- Two or more persons with the same identification;
- One person using multiple identification documents.
Unrealistic wealth compared to client profile;
Which is the missing red flag for these general types of red flag?
- Customers using family members or third parties;
- Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
- Unrealistic wealth compared to client profile;
- ___________________________
- Two or more persons with the same identification;
- One person using multiple identification documents.
Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
Which is the missing red flag for these general types of red flag?
- Customers using family members or third parties;
- Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
- Unrealistic wealth compared to client profile;
- Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
- ________________________________
- One person using multiple identification documents.
Two or more persons with the same identification;
Which is the missing red flag for these general types of red flag?
- Customers using family members or third parties;
- Defensive stance to questioning or reluctance to provide CDD information including proof of income / wealth;
- Unrealistic wealth compared to client profile;
- Unusual business or transactions eg cash intensive businesses such as bars, restaurants and nightclubs;
- Two or more persons with the same identification;
- ___________________________________________-.
One person using multiple identification documents.
Which is the missing red flag for these types of red flag for accountants?
- __________________________________________________-
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Using an agent or intermediary without obvious reason;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- ____________________________________________
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Clients using professional business or trust account, where large deposits are made;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- _____________________________________
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- ___________________________
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office.
Overseas instructions from a client for no economic reason;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- ___________________________________
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Client is not concerned about the level of the fees;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- ___________________________________
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Client has a fast-growing real estate portfolio;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- _____________________________________
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Purchaser is a company with complicated beneficial ownership;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- _____________________________________-
- Client appears to have cash substantially above their means;
- Client uses a virtual office
Purchase amount is unusual compared to the appraised value or the previous purchase amount;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- _________________________________
- Client uses a virtual office
Client appears to have cash substantially above their means;
Which is the missing red flag for these types of red flag for accountants?
- Using an agent or intermediary without obvious reason;
- Clients using professional business or trust account, where large deposits are made;
- Funds are received from foreign jurisdictions particularly where there is no connection between the jurisdiction and the client;
- Overseas instructions from a client for no economic reason;
- Client is not concerned about the level of the fees;
- Client has a fast-growing real estate portfolio;
- Purchaser is a company with complicated beneficial ownership;
- Purchase amount is unusual compared to the appraised value or the previous purchase amount;
- Client appears to have cash substantially above their means;
- ________________
Client uses a virtual office
Which is the missing red flag for these types of red flag for lawyers?
- __________________________________________–;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Once funds are received into a trust account, the transaction is aborted
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- _________________________________________;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Client requests that deposited funds are sent to a third parties or parties rather than returned to the client
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- ______________________________________-;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Client avoids personal contact without good reason
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- ______________________________________________________;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- ______________________________________;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Amount being deposited is large compared to the client’s modest income
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- ____________________________;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Surplus funds are deposited
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- ________________________________________;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- ___________________________________
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Client changes legal advisor a number of times in a short period of time for no apparent reason
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- _______________________________;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
The purchase price is paid entirely in cash
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- ________________________;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Client has no proper identification papers
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- ____________________________________;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Purported legal documentation is too simple for the relevant transaction
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- ________________________________;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- Urgency in getting the deal done
Client’s connection with the jurisdiction is unclear;
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- _____________________________________
- Urgency in getting the deal done
No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
Which is the missing red flag for these types of red flag for lawyers?
- Once funds are received into a trust account, the transaction is aborted;
- Client requests that deposited funds are sent to a third parties or parties rather than returned to the client;
- Client avoids personal contact without good reason;
- Unusual manner of execution eg the deposit of funds for the purchase price occurs unusually early in the transaction and before the purchase price is agreed between parties;
- Amount being deposited is large compared to the client’s modest income;
- Surplus funds are deposited;
- Back-to-back property transactions, which were out of sync with normal market dynamics – the purported value of each property increasing rapidly with each transaction;
- Client changes legal advisor a number of times in a short period of time for no apparent reason;
- The purchase price is paid entirely in cash;
- Client has no proper identification papers;
- Purported legal documentation is too simple for the relevant transaction;
- Client’s connection with the jurisdiction is unclear;
- No mention of the issue by the client initially followed by an over willingness to provide a lot of documentation;
- _________________________
Urgency in getting the deal done
Give an example of what could be used to get money into the financial system, that many NZ families have.
A trust
Phase two of the AML /CFT Act closes the ___________ available to money launders and helps to increase faith in NZ’s financial system
Loopholes
Phase two of the AML /CFT Act closes the loopholes available to __________ and helps to increase faith in NZ’s financial system.
Money launderers
Phase two of the AML /CFT Act closes the loopholes available to money launders and helps to increase _______ in NZ’s financial system.
Faith
Phase two of the AML /CFT Act closes the loopholes available to money launders and helps to increase faith in NZ’s ______________
Financial system.
What does FATF stand for with regards to AML /CFT?
Financial Action Task Force
______________ was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
The United States
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in ______. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
2001
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The _____________ or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
Financial Action Task Force
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to __________. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
the AML Act 2009
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on _________. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
30 June 2013
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. _______ of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
Phase 2
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on __________ through the amendment bill capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
10 August 2017
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the ___________ capturing lawyers from 1 July 2018 and accountants from 1 October 2018.
amendment bill
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing ________ from 1 July 2018 and accountants from 1 October 2018.
lawyers
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from __________ and accountants from 1 October 2018.
1 July 2018
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and __________ from 1 October 2018.
Accountants
The United States was the first country to formalise measures in an effort to counter money laundering and financing of terrorism back in 2001. Australia and the UK followed shortly after. The Financial Action Task Force or FATF then asked NZ to conduct an extensive review of its financial systems. This review let to the AML Act 2009. This Act came into effect on 30 June 2013. Phase 2 of the legislation came into force on 10 August 2017 through the amendment bill capturing lawyers from 1 July 2018 and accountants from ____________.
1 October 2018
NZ’s govt introduced the AML Act to close money laundering loop holes and rebuild the countries financial reputation. The capture of lawyers and accountants under the Act ensures ongoing compliance with international recommendations and follows other jurisdictions such as the UK in capturing these professions.
money laundering
NZ’s govt introduced the AML Act to close money laundering loop holes and rebuild the countries financial reputation. The capture of lawyers and accountants under the Act ensures ongoing compliance with international recommendations and follows other jurisdictions such as the _____ in capturing these professions.
UK
NZ’s govt introduced the ________to close money laundering loop holes and rebuild the countries financial reputation. The capture of lawyers and accountants under the Act ensures ongoing compliance with international recommendations and follows other jurisdictions such as the UK in capturing these professions.
AML Act
Under phase 1 there were approximately ________companies listed as reporting entities
2000
Under phase 1 there were approximately 2000 companies listed as _____________
Reporting entities
Estimated that under phase 2 an additional_____________ businesses will be reporting entities. All phase 2 entities are supervised by the DIA.
7000-8000
Estimated that under phase 2 an additional 7000-8000 __________ will be reporting entities. All phase 2 entities are supervised by the DIA
businesses
Estimated that under phase 2 an additional 7000-8000 businesses will be ___________. All phase 2 entities are supervised by the DIA.
reporting entities
Estimated that under phase 2 an additional 7000-8000 businesses will be reporting entities. All phase 2 entities are supervised by the _______.
DIA
The Act sets out ___________ that reporting entities must meet but leaves it to the entity to decide how these obligations will be met based on the level of risk an entity faces. To mitigate such risks an internal compliance officer must be assigned to meet the 4 obligations as shown on screen.
broad obligations
The Act sets out broad obligations that reporting entities must meet but ____________ to decide how these obligations will be met based on the level of risk an entity faces. To mitigate such risks an internal compliance officer must be assigned to meet the 4 obligations as shown on screen.(attachment)
leaves it to the entity
The Act sets out broad obligations that reporting entities must meet but leaves it to the entity to decide how these obligations will be met based on _____________ an entity faces. To mitigate such risks an internal compliance officer must be assigned to meet the 4 obligations as shown on screen.(
the level of risk
The Act sets out broad obligations that reporting entities must meet but leaves it to the entity to decide how these obligations will be met based on the level of risk an entity faces. To mitigate such risks an __________________must be assigned to meet the 4 obligations as shown on screen
internal compliance officer
A ____________is one of the first documents an entity must create. It needs to be a written document, and include the 3 components as listed on screen (What is a risk assessment slide - attachment)
risk assessment
A ____________ outlines processes to minimize risks identified in the risk assessment. It must also include policies, procedures and controls for carrying out customer due diligence and for identifying suspicious activity, reporting and maintaining customer records. Further processes also need to be set out for staff training, staff vetting, governance, and assurance. These areas of compliance are explored in further detail in module 2.
compliance programme
A compliance programme outlines processes to minimize risks identified in the risk assessment. It must also include ______________ for carrying out customer due diligence and for identifying suspicious activity, reporting and maintaining customer records. Further processes also need to be set out for staff training, staff vetting, governance, and assurance. These areas of compliance are explored in further detail in module 2.
policies, procedures and controls
An _____________ filed each August must answer questions relating to 4 broad topics as listed on screen. The Information from the ________________s tells Supervisors how entities are managing in meeting requirement of the Act.
Annual Report
An Annual Report filed each _____________ must answer questions relating to 4 broad topics as listed on screen. The Information from the Annual Reports tells Supervisors how entities are managing in meeting requirement of the Act.
August
An Annual Report filed each August must answer questions relating to 4 broad topics as listed on screen. The Information from the Annual Reports tells ____________how entities are managing in meeting requirement of the Act.
Supervisors
An independent audit must be carried out every two years or as requested by ___________. An auditor needs to have appropriate AML /CFT expertise and needs to be independent meaning someone who has not been involved in the development of your documentation
your supervisor
An independent audit must be carried out every two years or as requested by your supervisor. An auditor needs to have ______________ and needs to be independent meaning someone who has not been involved in the development of your documentation.
appropriate AML /CFT expertise
An independent audit must be carried out every two years or as requested by your supervisor. An auditor needs to have appropriate AML /CFT expertise and needs to be ________ meaning someone who has not been involved in the development of your documentation.
Independent
An independent audit must be carried out every two years or as requested by your supervisor. An auditor needs to have appropriate AML /CFT expertise and needs to be independent meaning someone who has not been involved in the _____________________________.
development of your documentation
What is the focus with respect to terrorist financing?
Preventing the criminal activity from occurring
What was New Zealand removed from by the European Union in May 2012?
The banking and corporate “White List”.
Why did the European Union remove New Zealand from the prestigious banking and corporate “White List” in May 2012?
Because of weak money laundering and terrorism financing controls.
What was the case which led to New Zealand being removed from the prestigious banking and corporate “White List” in May 2012?
New Zealand was implicated in a firearms smuggling ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two registered New Zealand companies.
New Zealand was implicated in a _____________ ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two registered New Zealand companies
firearms smuggling ring
New Zealand was implicated in a firearms smuggling ring operated from _______. The _______ manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two registered New Zealand companies
Latvia Latvians
New Zealand was implicated in a firearms smuggling ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in _______, all through two registered New Zealand companies
Thailand
New Zealand was implicated in a firearms smuggling ring operated from Latvia. The Latvians manufactured then stored millions of dollars’ worth of firearms in Thailand, all through two ____________.
registered New Zealand companies
Money laundering occurs_________ the illegal funds have been generated.
after
What is the first phase of money laundering?
Placement
In what phase is it easiest to detect money laundering?
The placement phase
Why is it easiest to detect money laundering during the placement phase?
The funds are closest to the source.
What is the final phase of money laundering?
Integration
What does integration involved when talking about money laundering?
Introducing the money into the economy so that it appears as a “clean” or legitimate source of funds.
What is the first phase of an AML /CFT risk assessment?
Identify the risks faced by the entity.
What is the second phase of an AML /CFT risk assessment?
Describe how the entity will ensure the Assessment remains current.
What is the third phase of an AML /CFT risk assessment?
Enable the entity to determine the level of risk involved in relation to obligations under the Act.
Criminals may seek to ___________ cash into the professional’s trust account.
place
At the layering and integration stages, lawyers and accountants can provide the ___________ to create legal entities and arrangements to obscure ownership of assets and also assist in transferring those assets such as business and real estate.
“know-how”
At the layering and integration stages, lawyers and accountants can provide the “know-how” to create legal entities and arrangements to _________ ownership of assets and also assist in transferring those assets such as business and real estate.
obscure
At the layering and _________ stages, lawyers and accountants can provide the “know-how” to create legal entities and arrangements to obscure ownership of assets and also assist in transferring those assets such as business and real estate.
integration
When is the AML /CFT annual Report required to be filed by?
31 August each year
Who is responsible for filing the AML /CFT annual Report?
Internal Compliance Officer (attachment
Must the AML /CFT Risk Assessment be written?
Yes
Who must the AML /CFT Risk Assessment be maintained by?
A Compliance officer
An AML / CFT compliance Programme must include:- • Customer due diligence (CDD); • Staff Training; • Staff Vetting; • A\_\_\_\_\_\_\_\_\_\_ m\_\_\_\_\_\_\_\_\_\_
Account Monitoring
Must the AML /CFT Compliance Programme be written?
Yes
Are client credit checks required as part of the AML /CFT Compliance Programme?
No
CDD (for AML) is always conducted on n__________ p________
Natural persons
______________ of interest in land or other real property
Transfer
Transfer ____________ in land or other real property
of interest
Transfer of interest _____________ or other real property
in land
Transfer of _______________ or other real property
of interest in land
Transfer of interest in land ____________________
or other real property
