In accordance with section 159(3) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), the Minister of Justice hereby gives notice that she has granted the following exemptions from the Act:
Ministerial Exemption: Matrix Investment Services Limited
1. As the Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), I exempt Matrix Investment Services Limited (MISL) from Part 2 of
the Act in respect of its activities as manager of the Totara First Mortgage Fund ("Fund").
2. This exemption is subject to the following conditions:
(a) The Fund cannot be re-opened for investment to the general public; and
(b) that MISL continues to work towards a managed wind-down.
3. This exemption has been made for the following reasons:
(a) The risk of money laundering is low;
(b) no new investment money has come into the Fund since 2008;
(c) repayments are made to investors by direct credit as realisation proceeds become available;
(d) there is no longer any ability to reinvest with MISL or its related parties; and
(e) money is not coming in or out of the Fund in a manner that would create money laundering risk.
4. This exemption comes into force on the day after the date I grant this exemption (8 September 2013).
5. This exemption will expire on 30 June 2018.
Ministerial Exemption: KPMG Management
Services Limited
1. As the Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), I exempt KPMG Management Services Limited ("KPMG MSL") from all the provisions of Part 2 of the Act in relation to its role as Temporary Manager or Issuer of the Senior Care Property Trust and the Orient New Zealand Property Trust (together referred to as "the Trusts").
2. This exemption is subject to the following conditions:
(a) no new investor funds are accepted into the Trusts; and
(b) that each of the Trusts continues to be managed towards a "wind up".
3. This exemption has been made for the following reasons:
(a) All investments in the trusts have already been made and the trusts are in "wind down".
(b) All assets are in the process of being managed towards a sale, with remittance going to unit holders.
(c) There are no prospects of any new funds being introduced and, therefore, no new funds can be employed for money laundering purposes.
(d) Requiring KPMG MSL to comply with the operative provisions of the Act would not enhance risks of money laundering or the financing of terrorism. An exemption would provide no detrimental effect to the policy criteria underpinning the regime.
4. This exemption comes into force on the day after the date I grant this exemption (20 September 2013).
5. This exemption will expire on 30 June 2018.
Ministerial Exemption: Russell Investment Group Limited
1. As the Minister of Justice and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("the Act"), I exempt Russell Investment Group Limited ("Russell") from section
56(2) of the Act in so far as the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) compliance officer must be an employee of the reporting entity. The exemption is made in this case to allow the AML/CFT compliance officer to be an employee of an Australian entity.
2. The AML/CFT compliance officer should maintain a strong relationship with the New Zealand reporting entity's senior management and have clear reporting lines. New Zealand staff should have access to the Sydney-based officer in order to report suspicious circumstances that may arise, and the officer maintain appropriate qualifications and knowledge, and proper access to key information and adequate resources.
3. This exemption has been granted as there are low risks of money laundering and terrorist financing associated with this specific exemption, and it will allow Russell to use its existing Australasian compliance expertise in the New Zealand AML/CFT regime.
4. All other provisions apply. I particularly draw your attention to section 56(4) of the Act which states "The AML/CFT compliance officer must report to a senior manager of the reporting entity".
5. This exemption may be applied to successor(s) to the current AML/CFT compliance officer of Russell.
6. This exemption comes into force on the day after the date I grant this exemption (8 October 2013).
7. This exemption will expire on 30 June 2018, and/or if the conditions of the exemption are breached.
Ministerial Exemptions: Bodies Corporate and Body Corporate Managers
1. As the Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 ("Act"), I exempt all bodies corporate, created under the Unit Titles Act 2010
("UT Act") or created under the Unit Titles Act 1972 and continued under the UT Act, from all the provisions of the Act in relation to any relevant services provided in carrying out any management, financial, or administrative functions relating to the body corporate and the unit title development in accordance with the UT Act or the Unit Titles Regulations 2011 ("UT Regulations").
2. I also exempt any persons contracted or otherwise engaged by a body corporate as a body corporate manager or body corporate secretary (collectively referred to as "body corporate managers") from Part 2
of the Act in relation to any relevant services
provided whilst carrying out management, financial, or administrative functions and services on behalf of a
body corporate. The scope of this exemption for body corporate managers covers only those functions and services that a body corporate would otherwise provide its constituent owners in accordance with the UT Act or the UT Regulations.
3. The exemption provided to bodies corporate in paragraph 1 is not subject to any conditions.
4. The exemption provided to body corporate managers in paragraph 2 is subject to the following condition:
(a) A body corporate manager, in carrying out any functions and services on behalf of a body corporate, must adhere to all duties and other requirements contained in the UT Act, the UT Regulations, and any other relevant legislation as if the body corporate manager was acting as the body corporate itself.
5. These exemptions have been made for the following reasons:
(a) The risks of money laundering or the financing of terrorism are low.
(b) Funds paid to bodies corporate or body corporate managers are only payable by unit owners of bodies corporate. Funds are not accepted from any other parties (unless it is clear that such parties are acting as a unit owner's agent, such as a lawyer or accountant paying on instructions from their client).
(c) Funds are payable on levies struck during a financial year or (in the case of body corporate managers)
on the supply of an invoice showing levies struck by the body corporate for the financial year. The levies struck are intended to cover the costs of insurance and other outgoings for that year. If further funds are required during the year, additional levies are struck by the body corporate.
(d) Payments are made by direct credit to either the body corporate or body corporate manager. On receipt, funds are held in specific accounts as required by
the UT Act.
(e) Where the amount levied is in excess of the amount required for the year's outgoings, the surplus is usually credited to a long term maintenance fund
or offset against the next year's levies.
(f) Individual unit owners have no control or ability
to move money once it is received by the body corporate or body corporate manager.
(g) There is no automatic right of withdrawal or ability to use funds once levies are paid. Any surplus at the end of the financial year is usually minimal. These amounts are not usually returned to unit owners, but retained in the manner set out above.
6. This exemption comes into force on the day after the date I grant this exemption (8 October 2013).
7. This exemption will expire on 30 June 2018.
Any person wishing to provide comment on these notices should contact the Criminal Law Team at the Ministry of Justice website
international.crime@justice.govt.nz