DIA releases information on AML/CFT annual reports for DNFBPs

The Department of Internal Affairs (DIA) has released a thirteen-minute online webinar and a one-page guide on the annual report requirement for designated non-financial businesses and professions (DNFBPs).

Who is this relevant for? Why?

This information is targeted at DNFBPs, a class of reporting entity under the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009. These are law firms, conveyancing practitioners, incorporated conveyancing firms, accounting practices, real estate agents and trust and company service providers that, in the ordinary course of business, carry out one or more from a list of captured activities.

For most DNFBPs, the current reporting obligation will be their first under the regime, so guidance from their AML/CFT supervisor would very likely be useful.

What does it cover?

As reporting entities under the AML/CFT Act, DNFBPs are obliged to submit annual reports to the DIA. The current reporting period differs between the types of DNFBP, as they came under the AML/CFT regime in stages, but these will align for the 1 July 2019 – 30 June 2020 period.

The webinar discusses the AML Online tool for submitting annual reports, as well as the six components of those reports. These components are:

  • contact details and organisation structure
  • AML/CFT risk assessment and programme (including details on any designated business group structure)
  • products, services and customers/clients
  • captured activities
  • conditions of any ministerial exemption
  • declaration and signature.

The guide provides a brief summary of the same information.

Our view

With the annual reporting obligation being so new for most DNFBPs, it is good to see the supervisor providing some information about what is required. However, the webinar and guide only provide a high-level explanation of the required information, and those responsible for compliance with the AML/CFT regime at DNFBPs will still need to seriously consider the preparation of their reports.

What next?

DNFBPs will need to submit their annual reports to the DIA by 31 August 2019.

If you have any questions on these reporting obligations, or are considering what they may mean for your business, please contact one of our experts.

Who can help

Related Articles