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

New Zealand is bracing itself for a significant increase in financial crime in 2023, according to the latest PWC report. The country’s economy is growing, but it lacks skilled professionals to combat financial crime, making it a challenge for the government.

Expected Trends and Challenges

Cybercrime and Fraud

Increased cybercrime and fraud are expected to be major contributors to this rise.
A growing number of people unaware of how to protect themselves from financial fraud will make them vulnerable targets.

Regulatory Standards

Regulatory standards are expected to rise in line with FATF recommendations to prevent money laundering and terrorist financing.
New Zealand has been a member of the FATF since 2000, and private organizations must adopt policies and regulations to help prevent these crimes.

Emerging Priorities for Government and Regulators

Keeping up with pressures by leveraging technology
Finding solutions within current legal frameworks

Cryptocurrency is a new form of currency that has not been regulated in the same way as traditional currency, making it vulnerable to money laundering.

Challenges for Compliance Teams

Compliance teams are already under pressure, but with the rise of financial crime, they must improve their operations thoroughly.
A consistent challenge is that every aspect of compliance needs rigorous review and improvement, which can be difficult for teams already under significant BAU (Business As Usual) pressure.

Contingent Resource Teams

Contingent resource teams can ensure a ’no stone left unturned approach’, making a vital difference in understanding weaknesses and setting up concrete plans to resolve them.
Risk assessments require in-depth analysis of all controls, but many businesses fail to assess specific risks, leading to inaccurate business-wide risk assessment.

CDD (Customer Due Diligence)

CDD is an area that often needs improvement, as simple processes can be overlooked.
Many banks and financial institutions still do not get it right, turning to automation to address gaps, but the reality remains that appropriately skilled resource is vital to oversee technology itself.

Automation and Human Oversight

Automation can help with repetitive tasks, but people are needed to oversee automation and ensure informed decisions are made.
A combination of people plus technology is required to achieve purposeful AML (Anti-Money Laundering) processes and systems.

Using Contingent Workers for Compliance

Financial institutions and non-financial organizations in New Zealand have used contingent workers to deal with regulatory pressures and compliance risks. This has helped them resolve issues with their AML controls, setting up the right teams to find gaps and strengthen current compliance systems and controls.

Partnering with Experienced Experts

Organizations like Momenta Group are addressing genuine issues in AML/CFT (Anti-Money Laundering/Combating Financing of Terrorism) based on 30 years of experience collaborating with small and large companies. They offer an experienced outsourced workforce, providing skilled and experienced industry experts with in-depth knowledge about changing requirements.

Seeking Support for Compliance Challenges

If your business has been impacted by additional regulatory or compliance pressures and needs additional staffing support in claims handling and risk/compliance departments, speak to Momenta Group to see how they can help supply experienced and effective members to your team.