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AML Audit - New Zealand Business Entities
An AML Audit should be considered an investment to strengthen your firm’s brand value. We are a team of anti-money laundering compliance professionals with 10+ years of experience to ensure a quality AML audit. As a unique offering, we provide your business with FREE compliance tools designed to increase your AML/CFT compliance knowledge.
What is an AML Audit?
An AML/CFT audit is required under Section 59(2) of the Anti-Money Laundering and Countering Financing of Terrorism Act (AML/CFT Act). Regulations require the audit occur at least every 3 years (unless directed otherwise by the AML/CFT Supervisor).
AML/CFT Supervisors, being the Department of Internal Affairs, the Reserve Bank of NZ and the Financial Markets Authority, have collectively issued an AML/CFT Audit Guideline. The Guideline sets out how to plan for an AML audit and what reporting entities should expect to achieve from the outcomes of an AML/CFT audit.
Ultimately an AML/CFT auditor will review the methodology applied to the risk assessment and determine whether the written risk assessment reasonably informs on the areas of business with higher exposure to facilitating money laundering or terrorism financing. This may relate to the characteristics of products or services, customer or client types, the geographies dealt with, the method used to distribute products (ie, via internet or face-to-face) and finally, the nature, size and complexity of the business itself. The AML360 quality brand is delivered with affordability.
An AML auditor will also examine the written programme and test the procedures and controls that the AML programme relies on.
At the conclusion of the audit, a report will set out the findings of whether the business has materially met compliance. Any identified weaknesses should also include recommendations on how to bridge those weaknesses.
Once the AML/CFT audit report is completed, the business will have knowledge on whether the AML/CFT programme or AML/CFT risk assessment requires updating.
Any decisions that the business makes with regards to the AML auditor’s recommendations must be recorded in writing. This assists AML/CFT Supervisors and the follow-up audit to understand the rationale of business decisions made.