Financial Crime World

Financial Crime on the Rise in New Zealand: What to Expect in 2023

New Zealand’s economy is growing, but so are financial crime concerns. The country’s lack of skilled professionals in this field has led to a surge in demand for talent in combating financial crime. As a result, experts predict an increase in fraudulent activities in 2023.

The Rise of Financial Crime

According to the latest PWC report, New Zealand is expected to see a significant rise in financial crime, driven by increased cybercrime and fraud, as well as a growing number of people unaware of how to protect themselves from financial fraud.

Banks’ Response

Banks are likely to invest more in technology and cybercrime experts due to fears of losing customers if they fail to keep up with new technological developments. Regulatory standards are also expected to rise, aligning with FATF recommendations to prevent money laundering and terrorist financing.

Government’s Approach

The government is taking a global approach to fighting financial crime, recognizing the rapidly evolving nature of this threat. Three emerging priorities for government and regulators include:

  • Leveraging technology: Staying ahead of pressures by utilizing innovative solutions
  • Finding solutions within current legal frameworks: Identifying gaps and finding ways to address them
  • Addressing crypto-enabled fraud and cyber-related money laundering: Protecting against new and evolving threats

Challenges Ahead

Compliance teams are already under pressure, but hiring contingent workers can help bridge the gap in skills and expertise. A “no stone left unturned” approach is crucial for identifying weaknesses in risk assessments and setting up concrete plans to resolve them.

Inadequate Customer Due Diligence (CDD)

Inadequate CDD is another area of investigation that often goes unchecked. Automation can only go so far; appropriately skilled resources are vital to oversee technology and ensure informed decisions are made.

Solution: Contingent Workers

Financial institutions and non-financial organizations have turned to contingent workers to help deal with regulatory pressures and compliance risks. Momenta Group, a company with 30 years of experience in AML/CTF, offers an outsourced workforce solution, providing skilled and experienced industry experts to address common compliance concerns.

Conclusion

As regulators place more pressure on financial service participants to strengthen compliance systems and controls, organizations like Momenta are ready to provide contingent teams to help resolve issues. If your business is impacted by additional regulatory or compliance pressures, speak to Momenta Group to see how they can supply experienced and effective members to your team.