The Department of Internal Affairs (DIA) has recently undertaken a risk assessment of the New Zealand-to-Pacific Islands money remittance sub-sector. This updated risk assessment determines that the overall ML/TF inherent risk rating for the NZ-to-Pacific remittance corridor is now Medium. This is a change from the overall inherent risk assessment of medium/high for the money remittance sector in general. 

Further analysis from the DIA has determined that low value (under $1,000 NZD) remittance transactions from Pacific Island peoples (normally resident or seasonal workers temporarily in New Zealand) sent to the Pacific Islands for family support, familial or cultural events are assessed to be of Low inherent ML/TF risk. 

This updated risk assessment was undertaken to help address the challenges facing the remittance sector both within New Zealand, and the Pacific. It will help Pacific-focused money remitters better identify, monitor, and mitigate the risks they face and meet their AML/CFT obligations, including reporting suspicious or unusual activity. It will also help other reporting entities and the DIA, in its role as the AML/CFT supervisor, understand the risks presented by this sector. 

If you are a money remitter that deals with remitting funds specifically to or from the Pacific Islands, it will pay to look at redrafting your AML/CFT risk assessment to include this new information as it may assist you when dealing with your bank regarding the risk that they may be applying directly to your business. 

Reporting entities are reminded that, when conducting their own risk assessments of ML and TF risk, they must have regard to any applicable guidance material produced by the AML/CFT supervisors. More information on these changes can be found here.