Financial Crime Investigation Methods in New Zealand Under Scrutiny: Report Reveals Progress, Areas for Improvement
New Zealand’s measures to combat money laundering and terrorist financing are yielding positive results, but there is room for improvement. A comprehensive report by the Financial Action Task Force (FATF) and the Asia-Pacific Group on Money Laundering (APG) highlights both the strengths and weaknesses of New Zealand’s anti-money laundering and counter-terrorist financing system.
Progress Made
New Zealand’s anti-money laundering and counter-terrorist financing system is effective in many respects. The country has developed a robust understanding of money laundering threats through its multi-tiered risk assessment process, which identifies both domestic and international sources of threat. Additionally, the AML/CTF system has shown effectiveness in using financial intelligence and investigation tools to support money laundering investigations and prosecutions.
Areas for Improvement
However, there are still gaps that need to be addressed:
- Beneficial Ownership Information: The report highlights the importance of improving availability of beneficial ownership information. This includes addressing loopholes related to nominee directors and shareholders.
- Supervision: Supervision of the banking sector needs greater resourcing to ensure effective oversight.
- Targeted Financial Sanctions: Targeted financial sanctions require more effective implementation to address terrorist financing risks.
Response to Terrorist Financing Risks
New Zealand’s authorities have demonstrated a strong response to terrorist financing risks, including thorough and well-coordinated investigations following the Christchurch attack in 2019. However, there are still areas where improvement is needed, particularly in relation to implementing targeted financial sanction measures.
FATF Report
The FATF report was adopted at its February 2021 plenary meeting and provides a comprehensive review of New Zealand’s AML/CTF system, including its effectiveness and compliance with international standards. The report is a key tool for assessing the country’s efforts to combat money laundering and terrorist financing and identifying areas where improvement is needed.
Conclusion
While New Zealand has made progress in combating money laundering and terrorist financing, there are still areas that require attention. By addressing these gaps, New Zealand can further improve its anti-money laundering and counter-terrorist financing system and ensure a safer financial environment for all.