New Zealand Toughens Stance on Money Laundering and Financing of Terrorism
In an effort to combat criminal activity, New Zealand has strengthened its anti-money laundering (AML) and countering financing of terrorism (CFT) procedures. The country’s Department of Internal Affairs (DIA) is responsible for supervising various businesses and institutions to ensure they comply with the AML/CFT Act.
What is Money Laundering?
Money laundering is a process by which criminals disguise the illegal origins of their funds, making it difficult for authorities to track and recover the proceeds. Similarly, financiers of terrorism use similar techniques to evade detection and protect the identity of those providing and receiving funds.
Who is Affected?
The DIA supervises a wide range of businesses, including:
- Casinos
- Non-deposit taking lenders
- Money changers
- Virtual asset service providers
- And others
These entities are required to implement robust AML/CFT procedures to prevent their services from being misused by criminal organizations.
Impact on Consumers
Customers of these businesses may experience more stringent identity checks than before the AML/CFT Act came into effect. However, these measures are designed to protect New Zealand’s financial institutions and economy from the risks associated with money laundering and financing of terrorism.
Providing Proof of Identification
As a customer of an AML/CFT-regulated business, you may be asked to provide proof of identification. This is a necessary step in verifying your identity and ensuring that businesses are not used for criminal purposes.
Scam Alert: Beware of Phishing Scams
The DIA has issued a warning about a phishing scam impersonating the AML/CFT Group. Scammers are posing as officials, asking for personal financial information, payment of fees, and money transfers into cryptocurrency or different bank accounts. The public is advised to stop communication with suspicious requests and contact the DIA immediately.
Reporting Suspicions
If you suspect you have been scammed or targeted by a phishing scam, report it to:
- The Department of Internal Affairs (DIA)
- CERT NZ
- Your local police authority
For more information on reporting scams, visit the DIA website or consult with the Financial Markets Authority (FMA).