Financial Crime World

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Financial Crime Prevention Methods in New Zealand Under Scrutiny

New Zealand’s Financial Crime Group has been at the forefront of detecting and investigating financial crimes, including money laundering and terrorism financing. The group, comprising various agencies and units, works closely with government agencies and international partners to disrupt and dismantle criminal networks.

The Heart of New Zealand’s Financial Crime Prevention Efforts

Financial Intelligence Unit (FIU)

At the heart of New Zealand’s financial crime prevention efforts is the Financial Intelligence Unit (FIU), which plays a crucial role in collecting, analyzing, and disseminating financial intelligence. The FIU generates proactive and targeted financial offender profiles, provides policy advice, and produces the National Risk Assessment (NRA) to identify potential vulnerabilities in the financial system.

Asset Recovery Units (ARUs)

The Asset Recovery Units (ARUs), established in 2009, focus on disrupting, deterring, and derailing crime by denying criminals the opportunity to enjoy the benefits of their offenses. ARUs investigate complex cases using forensic accountancy and financial analysis processes, often in collaboration with other agencies such as Customs, the Serious Fraud Office, and Inland Revenue.

Money Laundering Team (MLT)

The Money Laundering Team (MLT), established in 2017, bridges the investigative gap between financial intelligence, financial investigations, and organized crime investigations. The team investigates criminal offenders moving proceeds of predicate offending and focuses on disrupting and dismantling facilitators assisting organized criminal groups to hide illicit funds.

Financial Crime Prevention Network (FCPN)

The Financial Crime Prevention Network (FCPN), a public-private partnership chaired by the Financial Crime Group, includes members from major banks and financial institutions. FCPN has initiated work plans to produce joint strategic typology products covering topics such as:

  • Child exploitation
  • Trade-based money laundering
  • Virtual asset service providers
  • Trust and company service providers

Key Players in New Zealand’s Financial Crime Prevention Efforts

Government Agencies

  • The Financial Crime Group (FCG)
  • Reporting Entities (REs)
  • Financial Action Task Force (FATF)
  • Reserve Bank of New Zealand (RBNZ)
  • Financial Markets Authority (FMA)
  • Department of Internal Affairs (DIA)

Financial Institutions and Units

  • Asset Recovery Units (ARUs)
  • Money Laundering Team (MLT)
  • Financial Crime Prevention Network (FCPN)

Guiding Legislation

New Zealand’s financial crime prevention efforts are guided by key legislation, including:

  • Anti-Money Laundering/Countering Financing of Terrorism Act 2009 (AML/CFT)
  • Criminal Proceeds (Recovery) Act 2009 (CPRA)
  • Regulations such as:
    • Customer Due Diligence / Know Your Customer (CDD / KYC)
    • Suspicious Activity Reports (SARs)
    • Prescribed Transaction Reports (PTRs)
    • Suspicious Property Reports (SPRs)
    • Border Cash Reports (BCRs)
    • Large Cash Transaction (LCT)
    • International Funds Transfer (IFT)