- Hon Nicole McKee
The Government will reform New Zealand's Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) system to provide significant regulatory relief for businesses, Associate Justice Minister Nicole McKee says.
"Cabinet has approved an AML/CFT reform work programme which will ensure streamlined, workable, and effective regulations for businesses, law enforcement, and everyday New Zealanders.
"The reforms will deliver a critical Government priority to cut red tape and improve the quality of regulation. My aim is to provide regulatory relief to businesses and the public, enabling law enforcement to crack down on organised crime, and ensuring that New Zealand upholds its international reputation."
The Anti-Money Laundering and Countering Financing of Terrorism system provides a framework for detecting, deterring, and combatting money laundering, terrorist financing, and serious and organised crime.
"I have heard from countless New Zealanders that the current regulations are unnecessarily risk-averse, resulting in complicated, repetitive processes. Simple tasks shouldn't be made confusing and difficult to complete," Mrs McKee says.
"New Zealand does have an obligation to meet the standards set by the Financial Action Task Force. Complying with these standards is important to protect our economy and our international reputation.
"I'm taking a pragmatic approach to this work, by prioritising changes that will deliver significant regulatory relief to businesses while also reducing the harm caused by money laundering in our communities. In fact, these reforms will deliver the most significant regulatory relief since the Anti-Money Laundering and Countering Financing of Terrorism Act came into force in 2013.
"The reforms will be undertaken in three parts. The first part is already well-advanced and will deliver immediate relief via two bills - the first of which, the Statutes Amendment Bill, has already been introduced to Parliament.
"The second part will focus on structural changes and a sustainable funding model, to create a more effective and efficient system. The final part will make additional regulatory changes to implement international standards and deliver a more risk-based system.
"Too many rules are created in Wellington by people who don't have a proper understanding of the impact they have. AML regulations are hurting small businesses who don't have dedicated compliance teams. Time and money spent on compliance for its own sake could instead be directed towards productive endeavours.
"ACT campaigned on making AML compliance user-friendly for small businesses, and taking a more risk-based approach, and we are delivering."
