New Zealand’s Anti-Money Laundering and Counter-Terrorism Financing Efforts Praised by Global Watchdog, But Room for Improvement Identified

New Zealand has been commended for its efforts in combating financial crime, but a recent comprehensive review has identified areas where improvement is needed. The assessment was conducted by the Financial Action Task Force (FATF) and the Asia-Pacific Group on Money Laundering (APG).

Effective Use of Financial Intelligence and Investigation Tools

The report praised New Zealand’s effective use of financial intelligence and investigation tools to support money laundering investigations, prosecutions, and criminal asset recovery. The country was also commended for its strong focus on restraint and forfeiture of criminal assets.

Cooperation with International Partners

New Zealand was recognized for its cooperation with international partners in combating money laundering and terrorist financing.

Areas for Improvement

However, the assessment identified several areas where New Zealand needs to improve:

• Availability of Beneficial Ownership Information: The report noted that more work is needed to make beneficial ownership information available.
• Strengthening Supervision and Implementation of Targeted Financial Sanctions: The assessment highlighted the need for stronger supervision and implementation of targeted financial sanctions.
• Non-Financial Sector Risks: While New Zealand’s AML/CFT policies and activities address the country’s money laundering and terrorist financing risks to a substantial extent, there is still more work to be done to mitigate these risks in the non-financial sector.

Effective Use of Sanctions

The assessment also highlighted the need for improved use of effective, proportionate, and dissuasive sanctions by New Zealand’s three AML/CFT supervisors.

Loopholes in Beneficial Ownership and Nominee Directors/Shareholders

The report noted that there are still loopholes regarding beneficial ownership and nominee directors and shareholders that need to be addressed.

Investigations and Sanctions

New Zealand’s authorities have been praised for their thorough, quick, and well-coordinated investigations of terrorist financing. However, there are gaps in the country’s implementation of targeted financial sanction measures.

FATF Adoption

The FATF adopted this report at its February 2021 Plenary meeting, highlighting the importance of continued improvement in New Zealand’s anti-money laundering and counter-terrorism financing efforts.