Can't complete your AML/CFT audit on time due to COVID-19?

Further to our earlier news item regarding AML/CFT auditing during the COVID-19 pandemic, the Department of Internal Affairs (DIA) has now announced that no adverse compliance action will be taken against a law firm if the law firm is unable to complete its audit by 30 June 2020 due to COVID-19 Alert Levels, provided it has acted in good faith.  

If a law firm is unable to complete its audit by 30 June due to COVID-19 Alert Levels, it must: 

  • be able to explain how COVID-19 affected its ability to complete the audit; 

  • be able to show the steps it took to complete the audit upon lifting of Alert Levels; and  

  • complete its audit as soon as practicable. 

This also applies to conveyancers, accountants, real estate agents and some trust and company service providers due to have their first independent audit in 2020.  

The DIA notes that “some reporting entities, where relevant staff and auditors are working remotely and have access to all required documents, may be unaffected. These entities should complete their audits by the current deadline”.  

At this stage, there has been no response to sector concerns regarding the ability to submit the annual report by 31 August 2020. 

Please contact us if you would like to discuss your AML/CFT audit or any aspect of DIA’s announcement. 

Neil Russ 

Alexandra Tunnicliffe 

Charlotte Beale 

Tracy Owen 

Neil Russ