The Anti-Money Laundering and Counter-Financing of Terrorism Act 2009 (AML/CFT) is undergoing significant changes in 2024. 

The Anti-Money Laundering and Counter-Financing of Terrorism Act 2009 (AML/CFT) is undergoing significant changes in 2024. These amendments are part of the second stage of regulatory changes resulting from the Ministry of Justice review of the Act. Reporting entities (such as financial institutions, lawyers, accountants, etc.) need to be prepared for these changes. Here are the key points, which are effective from June 1 2024:

Customer Due Diligence (CDD) Requirements:

Reporting entities must obtain and verify information related to a customer’s:

• Legal form and proof of existence.
• Ownership and control structure.
• Powers that bind and regulate the customer.
• For limited partnerships, the existence and name of any nominee general partners.
• For companies, the existence and name of any nominee directors or nominee shareholders.
• These requirements help accurately identify beneficial owners and assess associated risks.

Enhanced CDD Measures:

• Additional enhanced CDD measures are required when source of funds and/or wealth alone are insufficient to manage and mitigate risk.
• AML/CFT compliance programs must describe when enhanced CDD will obtain and verify source of funds information, source of wealth information, or both.

Remember to stay informed and ensure compliance with these updated regulations.