NZ’s anti-money laundering laws pass muster

  • Judith Collins
Justice

Justice Minister Judith Collins has welcomed the stamp of approval given by an international body to New Zealand's anti-money laundering and terrorist financing laws.

The Financial Action Task Force (FATF), an international body that sets policies and standards on anti-money laundering and combating terrorist financing (AML/CFT), has removed New Zealand from its follow-up assessment list.

“I’m pleased our framework for dealing with such crimes has received a stamp of approval from international experts and FATF members,” Ms Collins says.

“These laws are essential to help detect and deter money laundering, and also reflect sound practices for businesses to reduce financial risks for their customers and investors.

“Being in step with the rest of the world is crucial to New Zealand as a trading nation, as more authorities around the world are requiring compliance with AML/CFT standards.”

FATF last assessed New Zealand in 2009. That report identified a number of issues with New Zealand’s regime and FATF required New Zealand to have regular follow-up assessments. The Government has since put the Anti-Money Laundering and Countering Financing of Terrorism Act in place, which largely addressed those issues.

“This Government’s anti-money laundering legislation strengthens our nation’s financial system against serious crime,” Ms Collins says.

“Being internationally recognised for our progress is an important validation of New Zealand’s efforts. As a trading nation and good international citizen, we must keep in step with our major trading partners and do our part in tackling serious economic crimes.”

The Government is already moving to address recommendations in the latest FATF report, such as improving monitoring of institutions’ efforts to prevent terrorist financing and considering extending the AML/CFT Act to cover professions such as lawyers, accountants, real estate agents and high-value dealers.

Meanwhile, measures to increase the effectiveness of New Zealand’s AML/CFT offences will be included in the Organised Crime and Anti-Corruption Legislation Bill, which the Government expects to introduce to Parliament before the end of the year.

The Bill puts in place elements of the ongoing ‘All of Government Response to Organised Crime’ strategy – including measures to tackle crimes such as money laundering, identify theft, human trafficking and corruption.