I'M EXEMPT, SO HOW IS MY BUSINESS AFFECTED NOW?
Practical guidance for 'exempt' businesses
Practical guidance for 'exempt' businesses
Even if temporarily exempt, what risks does your business face now?
Even if temporarily exempt from some of the legislation, it will still affect many professional services businesses immediately, in two main ways:
1. The effect of the legislation is widespread, and affects many businesses in sometimes unexpected ways.
2. Financial businesses had over 3 years to prepare, yet professional services firms may have as little as a year to prepare for what is likely the biggest operational change affecting their practices in decades. Change of this scope requires dedicated time and resources to understand, assimilate and embed into your systems and training programs; and also has immediate impact.
On both counts, a temporary exemption under the AML/CFT Act may create a false sense of security:
1. How will money laundering laws affect my business now?
We have identified 10 areas in which the new legislation will affect many 'exempt' businesses immediately. The combined effect on some firms may be materially to raise their risk profiles.
Even if temporarily exempt from some of the legislation, it will still affect many professional services businesses immediately, in two main ways:
1. The effect of the legislation is widespread, and affects many businesses in sometimes unexpected ways.
2. Financial businesses had over 3 years to prepare, yet professional services firms may have as little as a year to prepare for what is likely the biggest operational change affecting their practices in decades. Change of this scope requires dedicated time and resources to understand, assimilate and embed into your systems and training programs; and also has immediate impact.
On both counts, a temporary exemption under the AML/CFT Act may create a false sense of security:
1. How will money laundering laws affect my business now?
We have identified 10 areas in which the new legislation will affect many 'exempt' businesses immediately. The combined effect on some firms may be materially to raise their risk profiles.
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Contact us for detailed information on each of these areas outlined above, and for effective ways to begin up skilling staff on important immediate ramifications on your business.
2. When will the other requirements start to affect my business, and what should we do to prepare?
Officially, government agencies were due to begin the policy work in 2014 to include specified professional services firms. At New Zealand's AML/CFT conference in late June, however, officials confirmed that the early policy work had already started. At its most basic level, regulations could simply remove the exemption on notice. This outcome will be more likely in the event of a major incident involving any of the exempt professional services firms; the political impact of a significant money laundering event through an exempt firm which affects New Zealand's international reputation is obvious. The likelihood, however, is a process in which voluntary codes, regulatory oversight and a range of other factors may be canvassed.
Whatever the ultimate outcome, waiting for the precise rules involves risk; the reality is that the core is already known - global standards are clear, and will always form the bedrock. Effective change within any firm takes time, so leading firms can confidently begin their awareness process immediately.
One of the most effective ways to begin preparing for major change that will affect your business is to begin the planning process with a private workshop for your team. Contact us for details. In the meantime, download our free action checklist:
2. When will the other requirements start to affect my business, and what should we do to prepare?
Officially, government agencies were due to begin the policy work in 2014 to include specified professional services firms. At New Zealand's AML/CFT conference in late June, however, officials confirmed that the early policy work had already started. At its most basic level, regulations could simply remove the exemption on notice. This outcome will be more likely in the event of a major incident involving any of the exempt professional services firms; the political impact of a significant money laundering event through an exempt firm which affects New Zealand's international reputation is obvious. The likelihood, however, is a process in which voluntary codes, regulatory oversight and a range of other factors may be canvassed.
Whatever the ultimate outcome, waiting for the precise rules involves risk; the reality is that the core is already known - global standards are clear, and will always form the bedrock. Effective change within any firm takes time, so leading firms can confidently begin their awareness process immediately.
One of the most effective ways to begin preparing for major change that will affect your business is to begin the planning process with a private workshop for your team. Contact us for details. In the meantime, download our free action checklist: