New Zealand strengthens money laundering and financial terrorism regulations

The New Zealand government has announced that it will strengthen its regulations against money laundering and financial terrorism.

The announcement by Justice Minister Kiri Allan follows a review of the Anti-Money Laundering and Counter Financing of Terrorism Act. The review was part of the government's response to the Royal Commission of Inquiry into the Christchurch attack in 2019.

Justice Minister Kiri Allan said: “Our country is a safe place to do business, but we want to do as much as possible to disrupt the criminal economy, and improve how we detect, deter and eliminate money laundering.

“Money laundering can threaten our international reputation. Because New Zealand is one of the least corrupt countries in the world, it also make us more attractive for international money-launderers.

“Last year an evaluation by the Financial Action Task Force found New Zealand was a highly effective international partner contributing to foreign investigations and tenaciously pursuing money laundering globally, but that there were still ways we could strengthen our laws and regulations."

The new regulations will require reporting entities to assess their risks of money laundering and terrorism financing, identify and know their customers, report suspicious activities and maintain records.

Allan said: “The Act disrupts serious and organised crime, as well as terrorism, by imposing obligations on businesses that provide specific financial and non-financial services, known as reporting entities.”

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