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Action on money laundering

Posted on 16 September, 2014

New Zealand regulators are now monitoring financial institutions to stamp out money laundering that could be worth up to $1.5 billion. As part of a new anti-money laundering regulatory regime, the Reserve Bank, Department of Internal Affairs and Financial Markets Authority are trying to prevent criminals from disguising the illegal origins of their money. “New Zealand cannot afford to be seen as a weak link in the chain of international efforts to tackle money laundering and the financing of terrorism,” Rob Edwards, the Reserve Bank’s anti-money laundering manager, told a seminar in Wellington. “New Zealand has comparatively low rates of crime and corruption, but we are not immune.” Regulators will initially focus on monitoring and compliance to ensure institutions can detect and report suspicious activity as the new regime beds in. Those that breach the rules, but are deemed to have made a genuine effort, will likely face supervision at this stage rather than enforcement. New Zealand needs to secure a favourable review of its anti-money laundering regime from the international Financial Action Task Force (FATF) in 2016 to enhance its business reputation. Edwards says: “A weak regime and unfavourable assessment by the FATF would damage New Zealand’s international reputation and the prospects of businesses on the international stage. It would also increase the likelihood that organised criminal groups and financiers of terrorism will try to exploit New Zealand’s financial system.” The Anti-Money Laundering and Countering Financing of Terrorism Act 2009 – previously reported on by Autofile – aims to prevent money-laundering by criminals and funding of terrorist attacks, as well as enhance this country’s international business reputation.