Anti-Money Laundering and Countering Financing of Terrorism Bill

Clauses 1 and 2 set out the bill’s title and commencement provisions for the financial service providers and casinos, collectively referred to as the financial entities. The bill anticipates a lead-in time for reporting entities to make sure that they have the measures required by the bill in place before their obligations become law. Because some flexibility is required, the commencement provisions relating to important reporting entities’ obligations will be through an Order in Council. The expectation is that at least 2 years will be provided, but the Government does intend to consult further with industry on the appropriate lead-in time.

Certain provisions will come into force immediately following the bill’s Royal assent, including the New Zealand Police’s financial intelligence functions and the supervisors’ functions and powers, along with the ability to make regulations. This will enable the Government to gear up the regime and allow supervisors to assist reporting entities in the implementation of the responsibilities.

The provisions relating to the cross-border transportation of cash will come into force 12 months after the bill receives its Royal assent. This aspect of the bill is relatively self-contained and will update and replace the border cash-reporting regime of the Financial Transactions Reporting Act 1996. The commencement provisions of the bill will make sure that the obligations for reporting entities are brought into force within a time frame that is practical for industry and sensitive to implementation costs.

I will speak relatively briefly to this. Again, it is to thank officials for the work they have done on the legislation, and to congratulate Ministers, especially Steven Joyce as he enters the Chamber, on their timing in bringing this bill to the Committee in embarrassing times for Melissa Lee and Bill English. I have no doubt whatsoever that Gerry Brownlee was totally ignorant when he put it on the Order Paper, but I would not say that the other Cabinet Ministers were. It is a particularly embarrassing time for the Government in New Zealand, and for Bill English in particular. Never before have I seen a Minister in place and not suspended while the Auditor-General is conducting this sort of investigation. I can see it. Given the revelation around Melissa Lee last night on TV3—although some of us have known about it for some time—one would have thought that a cautious Leader of the House would have taken the opportunity to defer this legislation. I say thank you and congratulations to Mr Joyce on his promotion.

Clause 1 agreed to.

Clause 2 agreed to.

Sitting suspended from 6 p.m. to 7.30 p.m.

Bill reported with amendment.

Report adopted.