Financial Crime World

Financial Crime in New Zealand: What to Expect in 2023?

New Zealand is expected to experience a significant increase in financial crime in 2023, driven by cybercrime and fraud. According to a recent PWC report, the country’s economic growth and lack of skilled professionals in financial crime prevention have led to a growing demand for talent in this area.

Emerging Threats

  • Cybercrime: With the rise of technology and online transactions, cybercrime is expected to increase.
  • Fraud: Financial institutions must be vigilant against fraudulent activities, including crypto-enabled fraud and cyber-related money laundering.
  • Money Laundering: Cryptocurrency’s lack of regulation makes it vulnerable to money laundering.

Regulatory Standards

New Zealand has been a member of the FATF (Financial Action Task Force) since 2000. To prevent money laundering and terrorist financing, regulatory standards are likely to rise in line with FATF recommendations. Private organizations must implement policies and regulations to comply with these guidelines.

Government Initiatives

The government is taking an international stance against financial crime, recognizing that global landscapes are changing rapidly. To combat emerging threats, compliance teams should focus on three key priorities:

  • Leveraging technology: Automation can help streamline processes, but skilled resources are essential for overseeing technology and making informed decisions.
  • Finding solutions within current legal frameworks: Compliance teams must stay up-to-date with changing regulations and laws.
  • Developing a workforce strategy: Organizations must develop training programs for employees handling cybercrime issues.

Challenges

AML/CTF compliance remains a challenge for many organizations, with inconsistent risk assessments and inadequate customer due diligence (CDD) practices. Skilled resources are essential for overseeing technology and making informed decisions.

Solutions

Organizations like Momenta Group offer experienced outsourced workforces to support AML/CTF compliance. With 30 years of experience collaborating with small and large companies, Momenta provides skilled experts who understand the changing requirements of various sectors.

Benefits of Hiring Contingent Workers

Financial institutions and non-financial organizations in New Zealand can benefit from hiring contingent workers to resolve issues with their AML controls. By setting up the right teams and leveraging technology, firms can strengthen their compliance systems and controls, ensuring they stay ahead of emerging threats.

In conclusion, financial crime is expected to increase in 2023, driven by cybercrime and fraud. To combat these emerging threats, organizations must focus on leveraging technology, finding solutions within current legal frameworks, and developing a workforce strategy that includes training programs for employees handling cybercrime issues. With the right approach, financial institutions and non-financial organizations can strengthen their compliance systems and controls, ensuring they stay ahead of emerging threats.