Financial Crime World

Financial Crime Prevention Strategies Unveiled in New Zealand

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The New Zealand Police Financial Intelligence Unit (FIU) and five major banks have launched a year-long pilot of the New Zealand Financial Crime Prevention Network (NZ-FCPN), aimed at enhancing the country’s resilience to money laundering, terrorist financing, and associated offending.

Background

The NZ-FCPN was established following feedback from various stakeholders, including the Commerce Commission, Office of the Privacy Commissioner, Financial Markets Authority, Department of Internal Affairs, and Reserve Bank of New Zealand. An independent legal review also ensured the Memorandum of Understanding establishing the network met all necessary requirements.

Importance of Collaboration

Detective Superintendent Iain Chapman warned that as technology advances, so do criminals in their attempts to conduct financial crimes such as money laundering and terrorism financing. “New Zealand is not immune to the threat of organized financial crime, and it’s crucial we establish this network to harness individual efforts,” he said. “Our goal is to improve our ability to detect, prevent, and disrupt financial crime within our current laws.”

Evolution of Financial Crime Prevention

The NZ-FCPN marks an evolution from the Anti-Money Laundering and Countering of Financing of Terrorism Act 2009, which prompted banks and FIU to develop their own expertise independently. The new network aims to bring together members’ individual efforts to combat financial crime.

Global Trend

Globally, there is a trend towards private sector and law enforcement agencies collaborating to combat financial crime and terrorism financing. By establishing the pilot, New Zealand is positioning itself strongly in this regard. “Having an elevated ability to detect attempts at financial crime will make New Zealand a less desirable place for criminals,” said Detective Superintendent Chapman.

Benefits

The new network will provide a more complete picture of criminal activity, leading to better strategic development and ultimately keeping New Zealand safe and secure. Criminals are becoming increasingly sophisticated in exploiting banking customers and posing a risk to New Zealand’s e-commerce and trading reputation.

Evaluation

The pilot will be evaluated after one year, with outcomes reviewed and the impact on serious financial crime in New Zealand assessed.

Key Takeaways

  • The NZ-FCPN is a year-long pilot launched by the FIU and five major banks to enhance New Zealand’s resilience to money laundering, terrorist financing, and associated offending.
  • The network brings together expertise and resources from ANZ, ASB, BNZ, Kiwibank, Westpac, and the FIU to detect, prevent, and disrupt financial crime.
  • Collaboration between private sector and law enforcement agencies is key to combating financial crime and terrorism financing.