New Zealand’s Beneficial Ownership Determination: A Call to Action
A recent Transparency International New Zealand (TINZ) webinar has highlighted the importance of determining beneficial ownership in New Zealand, with experts urging for urgent action to prevent corruption and money laundering.
The Issue at Hand
According to TINZ Chair Suzanne Snively ONZM, New Zealand’s current lack of transparency in registering overseas beneficial owners leaves the country exposed to corruption and costly white-collar crime. “Beneficial ownership is a critical issue that requires urgent attention,” she said. “We need to ensure that we are not just registering legal title holders, but also identifying the individuals or entities that ultimately benefit from these transactions.”
Global Perspective
Dr John Hopkins, TINZ Director, presented on the different laws and policies around beneficial ownership globally. He emphasized the importance of having a public register of beneficial ownership, citing examples such as the European Union’s 5th Anti-Money Laundering Directives, which require beneficial ownership registers that include trusts.
Current Review
Professor Mark Bennett from Victoria University’s Faculty of Law outlined the coalition government’s current review of beneficial ownership and the need for a compromise on registering foreign trust ownership. “We need to find a balance between protecting private financial affairs and ensuring transparency,” he said.
Challenges and Solutions
The webinar also touched on the challenges of identifying beneficial owners, particularly in cases where trusts are used to disguise control of funds. Experts emphasized the importance of creating a register dataset that will help prevent money laundering through New Zealand’s trust system. A public register of beneficial ownership is crucial in achieving this goal.
Concerns and Criticisms
New Zealand’s current lack of transparency in registering overseas beneficial ownership has raised concerns about the country’s vulnerability to corruption and drug-related money laundering. The 2013 Law Commission report, which recommended against creating a public register of beneficial ownership, was criticized for focusing solely on New Zealand trusts and ignoring the risks posed by foreign beneficial owners.
Call to Action
The webinar concluded with an active question-and-answer session, where attendees discussed the need for urgent action to tighten up New Zealand’s beneficial ownership policy. The recording of the webinar is available on Facebook, and we urge all stakeholders to take part in this important conversation.
Key Takeaways
- Urgent action is needed to prevent corruption and money laundering
- A public register of beneficial ownership is crucial in achieving transparency
- Compromise is necessary between protecting private financial affairs and ensuring transparency
- Creating a register dataset will help prevent money laundering through New Zealand’s trust system