In accordance with section 157(6)(b) of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), the Associate Minister of Justice hereby gives notice that he has granted the following exemption from the Act:
Ministerial exemption: Swiss Re Life & Health Australia Limited, New Zealand Branch (NZBN: 9429040975696)
- As the Associate Minister of Justice, and pursuant to section 157 of the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 (“Act”), I exempt Swiss Re Life & Health Australia Limited, New Zealand Branch (“Swiss Re”) from the following provisions of the Act:
- Sections 10—71 inclusive.
- This exemption is in respect of the provision of reinsurance under the following two closed treaties:
- Life Insurance Treaty (AMPLIFE1099) effective 1 December 1996; and
- Life Coinsurance Treaty (022) effective 1 January 1965.
- This exemption is made subject to the following condition:
- Swiss Re must inform the Ministry of Justice of any changes that may affect the exemption and/or conditions imposed by this written instrument within 14 days from when the change affecting the exemption occurs.
- This exemption has been granted for the following reasons:
- The Reserve Bank of New Zealand considers that the money laundering and terrorist financing risk associated with reinsurance, in relation to the two closed treaties provided by Swiss Re, is low;
- the relevant services provided in respect of insurance policies are limited to a defined number of life insurance policies, which are closed to new customers;
- the ability for premiums to change is limited to circumstances where an existing policyholder wishes to increase their cover by providing new medical evidence;
- both Swiss Re and the counterparty to the treaties are licensed insurers under the Insurance (Prudential Supervision) Act 2010;
- the counterparty to the treaty (as a licensed insurer and reporting entity) is subject to the requirements of the Act and must comply, as applicable, with customer due diligence obligations under the Act in respect of its customers who have entered into life insurance contracts; and
- due to the low money laundering and terrorism financing risk associated with Swiss Re and the significant compliance costs to Swiss Re that would arise from not granting this exemption, I consider that any benefits of requiring compliance with the AML/CFT Act are not justified by the associated costs. This exemption comes into force on the day after the date I grant this exemption.
- This exemption came into force on 7 February 2018.
- This exemption will expire on 30 November 2022.
Any person wishing to provide comment on this notice should contact the Criminal Law Team at the Ministry of Justice by emailing email@example.com.