Earlier this week, Associate Justice Minister Nicole McKee announced  an overhaul of the Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) regime, moving to a single supervisor and introducing a new funding model for the system.

Presently, the AML/CFT regime has three supervising agencies (the Reserve Bank of New Zealand, the Financial Markets Authority, and the Department of Internal Affairs), with the supervising agency allocated to an individual reporting entity based on the activities of the reporting agency. Under the new model, the Department of Internal Affairs will become the sole supervisor for all reporting agencies.

The new model will be supported by a “sustainable” funding model which will establish an industry levy. Details of how the levy will be calculated or charged are not yet available. However, the Associate Minister has said “the levy will be designed to ensure that costs are equitable and reasonable for the sector and will not place undue burden on small businesses”.

This latest announcement is part of wider reform of the AML/CFT system. Our previous article sets out other changes proposed.

To discuss developments in this area please contact any of our experts.