A salesperson says the Real Estate Authority supervises agencies' anti-money laundering compliance. Which agency is the AML/CFT supervisor for real estate agents as at September 2026?
Correct Answer
D) The Department of Internal Affairs, the sole supervisor from 1 July 2026.
Under the AML/CFT (Supervisor, Levy, and Other Matters) Amendment Act 2026, the Department of Internal Affairs became the sole AML/CFT supervisor for all reporting entities from 1 July 2026. This replaced the model under which DIA, the Financial Markets Authority and the Reserve Bank each supervised different sectors. Real estate agents were already supervised by DIA.
Why This Is the Correct Answer
From 1 July 2026 DIA supervises every reporting entity, including real estate agents.
Why the Other Options Are Wrong
Option A: The Real Estate Authority, which also licenses and disciplines agents.
The Authority regulates licensing and conduct under the REAA; AML/CFT supervision sits with the Department of Internal Affairs.
Option B: The Financial Markets Authority, which took over all AML/CFT supervision in 2026.
The 2026 reform ended the three-supervisor model by making the Department of Internal Affairs the sole supervisor.
Option C: The Reserve Bank, because it supervises the banks that hold trust accounts.
The Reserve Bank stopped being an AML/CFT supervisor when the Department of Internal Affairs became the sole supervisor.
Background Knowledge for Compliance
Source: https://www.dia.govt.nz/New-Era-for-AML-CFT-regulation-as-DIA-Launches-Comprehensive-Guidance-Suite
Exam Tip for Compliance
AML/CFT supervisor: DIA; licensing and conduct: the Real Estate Authority.
Common Mistakes to Avoid on Compliance Questions
- •Naming the Real Estate Authority as the AML/CFT supervisor.
More Compliance Questions
A real estate advertisement states 'Best value in the area' without any supporting evidence. Under the Fair Trading Act, this statement is:
Under the Fair Trading Act 1986, which statement about advertising a property for sale is correct?
A client provides a bank cheque for $30,000 as a deposit and mentions recently selling cryptocurrency to fund the purchase. Under AML/CFT requirements, what is the appropriate next step?
An agent holds $180,000 in trust across four transactions. One agreement is validly cancelled because the purchaser's finance condition was not met, and both parties' lawyers confirm the $60,000 deposit is to be refunded to the purchaser. What is the correct trust account procedure?
Under the Anti-Money Laundering and Countering Financing of Terrorism Act 2009, what is the minimum threshold for conducting customer due diligence when establishing a business relationship in real estate transactions?
- → An international client buying a $2.8 million commercial property provides a copy of their overseas passport but refuses any further identity checks or information, claiming diplomatic immunity. How should the agent proceed under AML/CFT requirements?
- → Which statement best describes the trust account requirements under the Real Estate Agents Act 2008?
- → An agency's trust account reconciliation reveals that interest earned on client deposits has been retained by the agency rather than distributed to clients. This practice is:
- → According to trust account regulations, how long must real estate agencies retain records of trust account transactions?
- → What is the primary purpose of the Consumer Guarantees Act 1993 in relation to real estate services?
- → Under the Consumer Guarantees Act 1993, if a real estate agent fails to exercise reasonable care and skill when marketing a property, what remedy might be available to the client?
- → A real estate agency's trust account shows a shortage of $5,000 during a routine audit. What is the most serious disciplinary order available under the Real Estate Agents Act 2008?
- → A real estate agent advertises a property as having a 'new roof' when they know it was repaired but not replaced. A buyer purchases based on this information and later discovers the truth. Which Acts could potentially apply to this situation?
- → Which statement best describes the primary purpose of trust accounts in real estate transactions?
- → A property advertisement states 'Guaranteed rental return of 8% per annum', although no one has contracted to pay that return. Under the Fair Trading Act 1986, this statement is:
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