Date posted: 23/11/2020 2 min read

In latest AML exemption application move, NZ Govt will remake decision

The Minister of Justice will remake the decision on Chartered Accountants Australia and New Zealand’s anti-money laundering (AML) exemption application following CA ANZ’s legal challenge against the Department of Internal Affair’s interpretation of the AML legislation.

In brief

  • The Minister of Justice will remake the decision on CA ANZ’s AML exemption application for tax transfers undertaken by tax agents
  • The move is the latest step in CA ANZ legal challenge against the Department of Internal Affair’s interpretation of the AML legislation
  • CA ANZ has agreed to adjourn its action until early May next year

The Ministry of Justice will not defend Chartered Accountants Australia and New Zealand's High Court application for a judicial review of CA ANZ's anti-money laundering (AML) exemption application for tax transfers undertaken by tax agents. 

Instead the Minister of Justice will remake the decision on CA ANZ's original exemption application. 

The Government declined CA ANZ's application for an exemption in April 2020.

CA ANZ has agreed to adjourn its action, including the declaratory judgment application, until early May 2021 to allow the Minister time to remake the decision.  

In October 2020, CA ANZ launched a legal challenge against the Department of Internal Affair's interpretation of the AML legislation, its latest step in relation to AML rules and tax transfers undertaken by tax agents.

CA ANZ filed a statement of claim against the Attorney General asking the High Court to rule on two matters. 

It sought a declaratory judgment on whether tax transfers undertaken by tax agents are a captured AML activity and a judicial review of the Ministerial decision not to grant our application for an exemption for such tax transfers.

Peter Vial FCA, New Zealand Country Head of CA ANZ said that depending on the outcome of the reconsideration of the exemption application, CA ANZ will either file amended pleadings or discontinue the action.

Ministerial Exemption application background

In October 2018 CA ANZ applied to the Ministry of Justice for a Ministerial Exemption from the AML/CFT Act in relation to tax transfers performed by tax agents.

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