The exemptions have been extended for a period of 18 months
The Ministry of Justice has renewed the first 13 class exemptions in The Anti-Money Laundering and Countering Financing of Terrorism (Class Exemptions) Notice 2018.
These exemptions, initially set to expire on June 30, have been extended for a period of 18 months. However, specific provisions within the managing intermediaries exemptions will only be retained for six months.
The decision to renew these exemptions for 18 months aligns with the ongoing work on the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime. The renewed period will allow sufficient time for the Ministry to review the class exemptions comprehensively.
The Ministry has already initiated the review process, which will involve seeking feedback through consultations on proposed changes to the class exemptions in the coming months.
During this interim period, minor modifications have been made to parts 5 and 6 of the Notice, explicitly targeting the managing intermediary exemptions. These exemptions overlap with the draft AML/CFT early regulations package, which is scheduled to come into force later this year. The changes primarily address the definition of "beneficial ownership" in those regulations, ensuring that the law no longer applies to "customers of customers." The managing intermediaries' exemptions will be altered accordingly to avoid any potential confusion arising from the two regulations.
Minister Russell, associate minister of justice, has agreed to a six-month renewal for all sections of these two class exemptions that the early regulations package will cover. This allows time for the early regulations package to come into effect before those redundant elements of the class exemptions are phased out.
The updated Notice has been officially published in the Gazette and came into force on June 30. By renewing and modifying these exemptions, the Ministry expects to enhance the effectiveness of the AML/CFT regime in combating money laundering and countering the financing of terrorism.