Financial Crime World

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

New Zealand’s growing economy and lack of specialized talent in financial crime management have led to a significant demand for contingent workforce solutions. In this article, we will explore the expected trends in financial crime in New Zealand, regulatory challenges, and the role of contingent resource teams in AML/CTF compliance.

According to the latest PWC report, New Zealand is expected to see a substantial increase in financial crime in 2023 due to increased cybercrime, fraud, and a growing number of individuals unaware of how to protect themselves from financial fraud. Banks are likely to invest more in technology and cybersecurity experts to stay ahead of emerging threats.

Regulatory Challenges

Regulatory standards are also expected to rise in line with FATF recommendations to prevent money laundering and terrorist financing. As New Zealand has been a member of the FATF since 2000, it is required to implement policies and regulations that help prevent these crimes.

Emerging Priorities for Government and Regulators

To combat financial crime, businesses must stay ahead of changing global trends. Three emerging priorities for government and regulators are:

Leveraging Technology

  • Developing a workforce strategy with increased skills in cybersecurity and data science will help companies stay ahead of emerging threats.
  • New laws may need to be created to allow authorities to investigate financial crimes without freezing suspects’ finances until trial.

Increasing Crypto-Enabled Fraud Awareness

  • Cryptocurrency is a new form of currency that can be used for money laundering, and financial institutions must be aware of this trend.

Compliance Teams Under Pressure

Compliance teams are already under pressure, making it challenging to identify weaknesses in risk assessments and implement concrete plans to resolve them. Contingent resource teams can ensure a “no stone left unturned” approach by providing experienced industry experts with in-depth knowledge of changing regulatory requirements.

Effective AML/CTF Compliance

To achieve effective AML/CTF compliance, a combination of people and technology is necessary. Automation can help with repetitive tasks, but people must oversee it to ensure informed and accurate decisions are made.

Risk Assessments

Risk assessments require in-depth analysis of all controls, but many businesses fail to assess specific risks, leading to inaccurate business-wide risk assessments. CDD is another area where automation may not be sufficient without the right mix of people and technology.

Benefits of Contingent Resource Teams

Financial institutions and non-financial organizations in New Zealand have used contingent workers to deal with regulatory pressures and compliance risks. Using the expertise of contingent resourcing can offer firms breathing space to resolve AML control issues.

Momenta Group’s Expertise

Momenta Group, a leading provider of outsourced workforce solutions, has 30 years of experience collaborating with small and large companies to address common compliance concerns. If your business needs additional staffing support in claims handling and risk/compliance departments, speak to us about how we can help supply experienced and effective members to your team.

References

  • PWC. The Rise of External Fraud. 2022.
  • Saidenberg, M., & Goyne, E. (2023). EY Global Financial Services Regulatory Outlook 2023. Retrieved from www.ey.com
  • The Financial Action Task Force (FATF). New Zealand Mutual Evaluation Report. 2021.