New Zealand Takes Steps to Prevent Financial Crime
In a bid to combat the increasing threat of financial crime in New Zealand, the country’s five major banks and the police have launched a year-long pilot scheme to enhance their ability to detect and prevent money laundering, terrorist financing, and associated offending.
The New Zealand Financial Crime Prevention Network (NZ-FCPN)
The NZ-FCPN brings together ANZ, ASB, BNZ, Kiwibank, Westpac, and the Police Financial Intelligence Unit (FIU), with the goal of improving the financial sector’s resilience to organised crime. The network has been established following feedback and advice from key stakeholders including:
- Commerce Commission
- Office of the Privacy Commissioner
- Financial Markets Authority
- Department of Internal Affairs
- Reserve Bank of New Zealand
Detecting and Preventing Financial Crime
Detective Superintendent Iain Chapman, who heads up the FIU, said that as technology becomes more sophisticated, so do criminals. “New Zealand is not immune to the threat of organised financial crime, and it’s vital we establish this network to harness individual efforts already in place,” he said.
Collaboration between Private Sector and Law Enforcement
The NZ-FCPN marks an evolution of the existing anti-money laundering and countering financing of terrorism framework, which was established with the passage of the Anti-Money Laundering and Countering of Financing of Terrorism Act 2009. Under this new initiative, the banks and FIU will work together to:
- Share information
- Conduct research
- Educate members of the law enforcement and financial services sector
Global Trend towards Collaboration
Globally, there is a growing trend of collaboration between the private sector and law enforcement agencies to combat financial crime and terrorism financing. Detective Superintendent Chapman said that establishing the pilot of the network puts New Zealand in a stronger position to tackle these crimes.
Evaluation of Pilot Scheme
The pilot scheme will be evaluated after one year, with outcomes reviewed and the impact on serious financial crime in New Zealand assessed.