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: Toyota New Zealand Limited (NZBN: 9429040939674)
- As the Associate Minister of Justice, and pursuant to section 157 of the Act, I exempt Toyota New Zealand Limited (TNZL) in relation to its Dealer Finance Activity from the following provisions of the Act:
- Sections 10–71 inclusive.
- For the purpose of this exemption,
Act means the Anti-Money Laundering and Countering Financing of Terrorism Act 2009
ML/TF means money laundering and terrorist financing
Dealer Finance Activity means the limited short-term credit facility TNZL provides to its Dealers, which enables the Dealers to delay payment back to TNZL
- This exemption is subject to the following conditions:
- This exemption only applies in relation to TNZL’s Dealer Finance Activity;
- TNZL must maintain a close relationship with its Dealers;
- TNZL must not accept any cash payments from its Dealers; and
- TNZL must inform the Ministry of Justice of any changes that may affect the exemption within 10 working days of when the change occurs.
- This exemption has been granted for the following reasons:
- the ML/TF risk associated with TNZL’s Dealer Finance Activity is low. This is due to fact that its sole customers in this activity are its Dealers, with which TNZL has a close business relationship. TNZL’s familiarity with its Dealers lowers its ML/TF risk. Furthermore, TNZL does not accept cash payments from its Dealers. Instead TNZL receives electronic payments via banks. This further lowers the ML/TF risk.
- In light of the low ML/TF risk associated with TNZL’s Dealer Finance Activity, granting this exemption would have little to no impact on the prevention, detection and prosecution of ML/TF offences;
- TNZL, in the absence of an exemption, would be subject to an undue regulatory burden. This is because the regulatory burden would be disproportionate to the low level of ML/T risk associated with TNZL’s Dealer Finance Activity.
- This exemption comes into force on 9 June 2020.
- This exemption will expire on 9 June 2025.
Dated this 9th day of June 2020.
Hon AUPITO WILLIAM SIO, Associate Minister of Justice.