The bill proposes 26 changes to improve its effectiveness and reduce compliance requirements
The government has introduced the Anti-Money Laundering and Countering Financing of Terrorism Amendment bill, which had its first reading in parliament on 13 February.
The bill proposes 26 changes to the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009, aiming to improve its effectiveness and reduce compliance requirements for certain businesses.
Associate Justice Minister Hon Nicole McKee said the amendments seek to ease regulatory requirements for low-risk activities and entities, such as family trusts. She stated that the changes would allow businesses to assess the level of customer checks required based on risk, rather than following a standard set of requirements. McKee said that some low-risk businesses currently undertake extensive compliance checks even when the risk of money laundering or terrorism financing is minimal. The proposed amendments aim to provide businesses with more flexibility while maintaining the integrity of the AML/CFT framework.
The bill also includes measures intended to reduce duplication in the AML/CFT system. It clarifies the definition of a "trust and company service provider" to address confusion and eliminate overlapping obligations for some businesses. It also removes a requirement for individuals bringing cash into New Zealand to report it multiple times. McKee said these changes are part of a broader effort to improve the efficiency of AML/CFT regulations while ensuring compliance with international standards.
According to McKee, the amendments represent the first phase of a wider reform programme. The Ministry of Justice is working on further changes, including a revised supervisor model, the introduction of a levy to help fund AML/CFT compliance efforts, and additional regulatory updates.
According to the government, the proposed amendments are part of its ongoing efforts to ensure AML/CFT regulations remain effective while addressing concerns from businesses about compliance obligations. The bill will proceed through the legislative process, with further debate and scrutiny expected in the coming months.
