AML in New Zealand

New Zealand, not being a significant regional financial hub, experiences a relatively low occurrence of money laundering. Nevertheless, experts in Anti-Money Laundering emphasize that any economic activity possesses the potential for money laundering. Consequently, individuals and institutions must undertake necessary measures to combat money laundering and terrorist financing crimes.

In New Zealand, a significant portion of money laundering activities is attributed to local gangs originating from Asia, engaging in crimes such as drug trafficking and fraudulent schemes. To counter these illicit activities, the New Zealand government has implemented rigorous precautions. All financial and non-financial institutions operating within the country are legally obligated to adhere to Anti-Money Laundering regulations.

In New Zealand, the regulation of banks, financial markets, investment firms, investment management companies, and lawyers falls under the oversight of specific authorities. These regulatory bodies include:

  1. Ministry of Interior (Malaysia)
  2. Central Bank of New Zealand
  3. Financial Markets Authority

The New Zealand government plays a significant role in combating money laundering. As part of government initiatives, money laundering obligations now extend to lawyers, accountants, and organizations engaged in high-risk financial activities.

With the recent changes, financial institutions are required to carry out various transactions more comprehensively and regularly. These transactions include practices such as knowing your customer, conducting customer due diligence, and reporting suspicious activities.

New Zealand has gained international recognition for its efforts in combating money laundering. In accordance with Article 14 of the United Nations Convention Against Corruption signed in December 2003, member states are obliged to implement comprehensive anti-money laundering measures and adhere to the standards established by international bodies focused on anti-money laundering. According to the most recent mutual assessment report by the Financial Action Task Force (FATF) on New Zealand, the country demonstrates substantial compliance with 17 out of the FATF 40 + 9 Recommendations. There is partial compliance or non-compliance with 1 out of 6 Core Recommendations.

New Zealand possesses a low risk of money laundering and terrorist financing, thanks in part to the proactive measures taken by the government to combat these illicit activities. One of these measures involves mandating businesses to comply with anti-money laundering (AML) obligations.

In New Zealand, businesses are required to diligently carry out procedures such as Know Your Customer (KYC) and Customer Due Diligence (CDD). Furthermore, institutions must promptly and regularly report any suspicious activities that come to their attention. To assist companies in meeting these AML compliance requirements, Sanction Scanner offers AML Compliance Software tailored to their specific needs. With its risk-based approach, institutions in New Zealand can effectively perform the KYC and CDD processes, enhancing their ability to combat money laundering and terrorist financing.