Financial Crime Prevention Strategies in New Zealand: What to Expect in 2023?
New Zealand is expected to face a significant increase in financial crime in 2023, according to the latest PWC report. The report highlights that this surge in financial crime can be attributed to increased cybercrime and fraud, as well as a growing number of individuals who are unaware of how to protect themselves from financial fraud.
Emerging Threats
The report also suggests that banks will invest more in technology and cybercrime experts to stay ahead of emerging threats. Additionally, regulatory standards are expected to rise in line with FATF recommendations to prevent money laundering and terrorist financing.
New Zealand’s Commitment to Fighting Financial Crime
New Zealand has been a member of the Financial Action Task Force (FATF) since 2000 and is required to implement policies and regulations that help prevent money laundering and terrorist financing. The government is committed to taking an international stance in the fight against financial crime, as global landscapes are changing rapidly.
Three Emerging Priorities
For government and regulators, three emerging priorities include:
- Keeping up with pressures by leveraging technology
- Finding solutions within current legal frameworks
- Addressing crypto-enabled fraud and cyber-related money laundering
Regulatory Standards
Regulatory standards are expected to rise in line with FATF recommendations to prevent money laundering and terrorist financing. The New Zealand government has already adopted the FATF’s recommendations, and private organisations also need to comply.
AML/CFT Compliance Challenges
Getting AML/CT compliance right is a major challenge for financial institutions and non-financial organisations in New Zealand. Compliance teams are under significant pressure and often struggle to assess specific risks that can lead to inaccurate business-wide risk assessments. In-depth analysis of all controls is required, but many businesses fail to adequately perform customer due diligence (CDD).
The Role of Technology
Automating systems and processes can help with repetitive tasks, but people are still needed to oversee automation and ensure informed decisions are made. What is needed now more than ever is a combination of people and technology solutions.
Contingent Workers
Financial institutions and non-financial organisations in New Zealand have used contingent workers to deal with regulatory pressures and compliance risks. Hiring contingent resources can offer breathing space in terms of resolving any issues with AML controls.
Outsourcing Compliance Solutions
Organisations like Momenta Group are addressing genuine issues in AML/CFT based on 30 years of experience collaborating with small and large companies. The solution to common compliance concerns is an experienced outsourced workforce.
Momenta offers skilled and experienced industry experts with in-depth knowledge about the continuously changing requirements of various sectors. If your business has been impacted by additional regulatory or compliance pressures, speak to Momenta to see how we can help supply experienced and effective members to your team.