Anti money laundering reforms open for discussion

A discussion document on enhancing measures to counter money laundering and the financing of terrorism has been released.

The document, which marks a second consultation round, proposes regulatory changes to enable New Zealand to comply with the Financial Action Task Force (FATF) - an inter-governmental body that sets international standards for combating money laundering and terrorist financing. Most of New Zealand's anti money laundering/countering financing of terrorism legislative requirements are contained in the Financial Transactions Reporting Act 1996 (the FTRA). This Act pre-dates the current FATF standards and is deficient in some areas. New Zealand is due for evaluation by the FATF in 2008.

Proposals to address deficiencies in the FTRA include:

• extending coverage of the FATF requirements to groups outside the core financial sector (i.e. to include other professions where laundering could occur, for example lawyers and accountants);
  
  
• more stringent checks on customer identity and verification;
  
  
• more detailed record keeping and reporting requirements; and
  
  
• increased monitoring of compliance with the FATF requirements.

For a copy of the document Anti-Money Laundering and Countering the Financing of Terrorism: New Zealand's Compliance with FATF Recommendations, click here.

Submissions close on 31 July 2006.

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