Financial Crime World

Banking Industry’s Role in Preventing Financial Crime in New Zealand

The banking industry in New Zealand plays a crucial role in preventing financial crime, with the Financial Crime Group (FCG) at its forefront. The FCG is made up of three key units: the Financial Intelligence Unit (FIU), Asset Recovery Units (ARUs), and the Money Laundering Team (MLT).

Financial Intelligence Unit (FIU)

The FIU collects, analyses and disseminates financial information to assist with the detection and investigation of money laundering, terrorism financing and other serious offences. The unit generates intelligence products, including:

  • Proactive Financial Offender Profiles: Identifying potential offenders before they commit a crime
  • Targeted Intelligence Products: Providing actionable intelligence to support investigations
  • Policy and Legal Advice: Informing policy decisions and legal matters related to financial crime

Asset Recovery Units (ARUs)

Established in 2009, ARUs were set up specifically to implement the Criminal Proceeds (Recovery) Act 2009. The units investigate complex cases using forensic accountancy and financial analysis processes, working with other agencies such as:

  • Customs: Enhancing border security and enforcing customs laws
  • Serious Fraud Office: Investigating serious fraud and corruption
  • Other Agencies: Collaborating with law enforcement agencies to combat financial crime

Money Laundering Team (MLT)

The MLT was established in 2017 to bridge the investigative gap between financial intelligence, financial investigations and organised crime investigations. The team focuses on disrupting and dismantling facilitators assisting organised criminal groups to hide illicit funds.

Financial Crime Prevention Network (FCPN)

New Zealand’s Public Private Partnership includes members from major banks such as ANZ, ASB, BNZ, Kiwibank, and Westpac. The FCPN has commenced a work plan to produce strategic typology products on topics such as:

  • Child Exploitation: Identifying and disrupting child exploitation networks
  • Trade-Based Money Laundering: Combating the use of trade-based activities for money laundering

Key Partnerships

The banking industry in New Zealand works closely with government agencies, including:

  • Customs: Enhancing border security and enforcing customs laws
  • Serious Fraud Office: Investigating serious fraud and corruption
  • Inland Revenue: Combating tax evasion and promoting tax compliance

International organisations such as the Financial Action Task Force (FATF) and the Reserve Bank of New Zealand (RBNZ) also play a critical role in preventing financial crime.

Reporting Requirements

The Anti-Money Laundering/Countering Financing of Terrorism Act 2009 requires reporting entities to submit:

  • Suspicious Activity Reports (SARs): Reporting unusual or suspicious transactions
  • Prescribed Transaction Reports (PTRs): Reporting specific types of transactions
  • Suspicious Property Reports (SPRs): Reporting suspicious property transactions
  • Border Cash Reports (BCRs): Reporting cash transactions exceeding a certain threshold
  • Large Cash Transaction reports: Reporting large cash transactions

International Funds Transfer reports are also required.