Financial Crime Network Launched to Combat Money Laundering and Terrorism Financing
Enhancing New Zealand’s Resilience to Financial Crime
A year-long pilot of the New Zealand Financial Crime Prevention Network (NZ-FCPN) was launched today, aiming to strengthen the country’s defenses against financial crime. The network brings together key stakeholders from the banking sector and law enforcement agencies to enhance cooperation and collaboration.
The Threat of Money Laundering and Terrorism Financing
As technology becomes increasingly sophisticated, criminals are able to conduct complex financial crimes such as money laundering and terrorism financing. New Zealand is not immune to these threats, and establishing the NZ-FCPN will help harness individual efforts to detect, prevent, and disrupt financial crime within current laws.
The Anti-Money Laundering and Countering of Financing of Terrorism Act 2009
The Anti-Money Laundering and Countering of Financing of Terrorism Act 2009 has already led to significant expertise being developed by banks and the FIU independently. The new network is an evolution of this, where members work together to tackle these crimes.
Key Components of the NZ-FCPN Pilot
- Strategic research projects: The NZ-FCPN will work on strategic research projects to enhance understanding of financial crime and terrorism financing.
- Education and training: Members of the law enforcement and financial services sector will be educated on best practices and strategies for combating financial crime.
Global Trend Towards Collaboration
Globally, there is a trend emerging where private sector and law enforcement agencies collaborate to combat financial crime and terrorism financing. Establishing the pilot of the network puts New Zealand in a stronger position, said Detective Superintendent Chapman.
The Benefits of Collaboration
“The cost of social harm caused by financial crime can be devastating, not only for victims but also for the broader economy,” he noted. “By working together, we will provide a more complete picture of criminal activity and lead to better strategic development that ultimately keeps New Zealand safe and secure.”
Evaluation and Outcomes
The pilot will be evaluated after one year, with outcomes reviewed as well as the impact on serious financial crime in New Zealand.
Sources:
- Police Financial Intelligence Unit (FIU)
- Five major New Zealand banks - ANZ, ASB, BNZ, Kiwibank and Westpac
- Commerce Commission
- Office of the Privacy Commissioner
- Financial Markets Authority
- Department of Internal Affairs
- Reserve Bank of New Zealand