Targeting Criminals, Not Kiwi Businesses
Associate Justice Minister Nicole McKee today announced further steps in the Government's overhaul of the AML/CFT regime, strengthening efforts to combat serious financial crime.
'This Government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape,' Mrs McKee says.
'Cabinet has agreed to introduce a bill to strengthen enforcement powers for Police and regulators to crack down on those involved in money laundering.
'It will also establish a new financial sanctions supervisory regime and initiate engagement on a sustainable levy to fund AML/CFT system improvements.
'The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system.
'An upper limit will be set on how much cash can be transferred internationally ($5,000 per transfer), reducing the ability of the criminal organisation to move its funds offshore.
'We will also make it more difficult for criminals to convert cash to high-risk assets such as crypto currencies by banning crypto ATMs.
'We will also enable the Financial Intelligence Unit (FIU) to order banks and other businesses subject to the AML/CFT Act to provide ongoing relevant information on persons of interest. The FIU will also be able to order the production of important contextual information other businesses on the financial activities of persons of interest. This will enable the more effective development of the financial intelligence needed to bring the criminals to justice.
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'Since 2019, the global financial and regulatory landscape has shifted significantly. We need a smarter, more agile AML/CFT system – one that targets criminals ability to launder money, while enabling New Zealand businesses to operate efficiently and competitively.
'Already, progress is being made. Two amendment bills currently before Parliament will remove some of the most burdensome compliance requirements, delivering practical relief for businesses by the end of the year.
'I have also this week announced plans to remove address verification requirements for many lower-risk customers and relax due diligence requirements for lower-risk trusts.
'This means businesses can focus their time and resources where the real risks lie, rather than being stuck chasing paperwork from low-risk clients.
'These are the types of issues businesses have raised with us, and we're acting. This is not about dropping standards, it's about applying them intelligently.
'We want New Zealand to be one of the easiest places in the world to do legitimate business and one of the hardest for criminals to hide. By cutting unnecessary red tape, we're giving honest businesses room to grow, while sharpening our focus on serious threats,' Mrs McKee says.
Targeted consultation with industry and stakeholders will begin shortly to inform the new national strategy and levy framework.
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