New regulatory structure aims to combat money laundering efficiently.
The New Zealand Government is set to overhaul its Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) system, introducing a single supervisor and new funding model. According to Associate Justice Minister Nicole McKee, the reforms aim to improve the system's responsiveness to industry needs and international standards.
A Financial Action Task Force evaluation led to the review of the AML/CFT Act 2009, resulting in a change from the current three-supervisor model to a single supervisor model, with the Department of Internal Affairs taking over. This will enable a more risk-based approach and timely provision of guidance and support for businesses.
A new funding model involving an industry-levy is also being introduced to ensure costs are equitable and reasonable for small businesses. The AML/CFT National Strategy and work programme will guide the levy's amendments, developed in partnership with industry and agreed by Cabinet.
The reforms aim to maintain New Zealand's international reputation, align its AML/CFT system with key trading partners, and support trade, investment, and economic growth.