Global AML Rule Changes Bolster NZ Reforms
Associate Justice Minister Nicole McKee has welcomed changes to international anti-money laundering standards which closely align with the Government’s reforms.
“The Financial Action Taskforce (FATF) last month adopted revised standards for tackling money laundering and the financing of terrorism to allow for simplified regulatory measures for businesses, organisations and sectors that pose a lower risk of money laundering,” Mrs McKee says.
“This Government is committed to meeting its international obligations to address money laundering and organised crime and the damage they cause to New Zealand’s society and the international economy. But our anti-money laundering and countering financing of terrorism (AML/CFT) regime needs to recognise that a one-size-fits-all regulatory model places an undue regulatory burden on businesses, organisations and sectors that pose low risk.
“We’ve heard numerous stories about children, disabled and unhoused people, as well as the elderly struggling to get bank accounts; community groups being subjected to unreasonable scrutiny; and people being driven out of business because the AML/CFT settings do not encourage simplified measures where risks are lower.
“That is why we promoted these changes at FATF, and I’m pleased other FATF members have joined us in taking a common-sense approach. My AML/CFT reform work programme will implement the FATF’s new standard by, amongst other things, allowing simplified measures for low-risk activities and entities” Mrs McKee says.
“These changes are in line with FATF’s new best practice that countries should not only address their AML/CFT risks but also apply a risk-based approach to ensure that measures to target money laundering and terrorist financing don’t make it impossible for innocent people to access financial services. Our focus should be on knuckling down on organised criminals and fraudsters harming our communities, not wasting time and effort digging into the affairs of ordinary people and community groups.
“New Zealand’s experiences working to address the complex issues which make it harder and more expensive for our Pasifika communities to send money home has played an important part in changing the standards. The FATF has listened to our experience and moved to address the AML piece of the puzzle.
“This Government’s intended reforms aim to improve the regime and deliver regulatory relief, to support tackling organised crime and to improve New Zealand’s compliance with international standards. The changes will be part of a wider package of reform to improve the effectiveness and efficiency of the AML/CFT regime for businesses, agencies, and ordinary New Zealanders.
“We are working hard to build efficient government structures to enable risk-based settings that empower common sense to stop wasting people’s time – and instead help businesses focus on the practical actions that they can take to help keep criminals out of our financial system.”
https://www.beehive.govt.nz/release/international-anti-money-laundering-rule-changes-support-government-reforms