Financial Crime World

Financial Crime in New Zealand: Trends and Challenges for 2023

New Zealand’s economy is growing, but managing financial crime has become a pressing challenge. With a lack of specialized talent in this area, there is a growing demand for contingent workforce solutions. This article highlights the expected trends and challenges in financial crime management in New Zealand.

Increased Cybercrime and Fraud

According to the latest PwC report, New Zealand is expected to see a significant increase in financial crime in 2023, driven by increased cybercrime and fraud. Banks are likely to invest more in technology and cybersecurity experts to stay ahead of new threats and risks.

  • Cybersecurity Threats: With the rise of remote work and digital transactions, cybersecurity threats are becoming more sophisticated.
  • Fraudulent Activities: Financial institutions need to be vigilant against fraudulent activities, such as phishing scams and identity theft.

Regulatory Standards and FATF Recommendations

Regulatory standards are expected to rise in line with FATF recommendations to prevent money laundering and terrorist financing. New Zealand’s government is taking an international stance on financial crime, recognizing the need for global cooperation to combat evolving threats.

  • Money Laundering: Financial institutions must implement effective anti-money laundering (AML) controls to prevent money laundering.
  • Terrorist Financing: Regulatory bodies are increasing scrutiny of transactions that may be related to terrorist financing.

Emerging Priorities for Government and Regulators

Three emerging priorities for government and regulators will be key for financial crime compliance teams to note:

  • Technology and Innovation: Leveraging technology to stay ahead of new threats and risks.
  • Legal Frameworks: Finding solutions within current legal frameworks to address regulatory challenges.
  • New Trends: Addressing new trends such as crypto-enabled fraud.

Contingent Workforce Solutions

To address these challenges, businesses in New Zealand are turning to contingent workforce solutions. Organizations like Momenta Group offer skilled and experienced industry experts who can help firms deal with regulatory pressures and compliance risks.

  • Industry Experts: Contingent workforce solutions provide access to specialized talent and expertise.
  • Risk Assessments: Organizations can improve their risk assessments and AML/CFT controls with the help of contingent workforce solutions.

Conclusion

Financial crime management in New Zealand is becoming increasingly complex, driven by emerging trends such as cybercrime and crypto-enabled fraud. To stay ahead of these threats, businesses need to invest in specialized talent, leverage technology, and find innovative solutions to address regulatory challenges. By working together, we can combat financial crime and promote a safer and more secure economy for all.

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