New Zealand's anti-money laundering laws are set to be reformed.
The Associate Justice Minister, Nicole McKee, has welcomed changes to international anti-money laundering standards that align with the Government's reforms. The Financial Action Taskforce (FATF) recently adopted revised standards allowing for simplified regulatory measures for businesses and sectors posing a lower risk of money laundering.
According to Minister McKee, the current one-size-fits-all model places an undue burden on low-risk businesses and organisations, driving some out of business and restricting access to financial services for vulnerable groups. The new standard encourages a risk-based approach, targeting organised criminals and fraudsters rather than innocent people.
The changes are seen as a positive step in addressing complex issues that affect New Zealand's Pasifika communities who struggle with sending money home due to anti-money laundering regulations. Minister McKee's reform work programme will implement the FATF's new standard, allowing simplified measures for low-risk activities and entities.
These reforms aim to improve the effectiveness and efficiency of the AML/CFT regime, delivering regulatory relief and supporting tackling organised crime. The changes are part of a wider package of reforms that will help businesses focus on practical actions to keep criminals out of New Zealand's financial system.