Pursuant to section 56(2)(c) of the Financial Transactions Reporting Act 1996, I, Clayton Cosgrove, Associate Minister of Justice, give notice of the intention to make a Regulation under section 56(1)(e) of this Act.
The Regulation will provide some relief from the customer due diligence requirements under the Financial Transactions Reporting Act 1996 when a financial institution offers a qualifying remittance card facility.
A qualifying remittance card facility is intended to facilitate low cost remittances through mainstream financial institutions via a two-card remittance transfer facility that uses the banking system’s international ATM and EFTPOS networks.
It is intended that customer due diligence will be reduced on the second card holder (who is intended to be based overseas), although not on the principal card holder.
The Regulation will:
(a) define a qualifying remittance card facility;
(b) determine when the qualifying remittance card facility is not a facility for the purposes of section 6(1) of the Financial Transactions Reporting Act 1996; and
(c) specify the requirement for a review of the Regulation and its effectiveness.
Copies of the discussion document outlining the terms and reasons for the Regulation can be found on the Ministry
of Justice website at
www.justice.govt.nz
HON CLAYTON COSGROVE, Associate Minister of Justice.