Big changes are coming to New Zealand’s AML/CFT regime. A series of new laws are working their way through Parliament, aimed at simplifying supervision, tightening requirements, and ensuring the system keeps up with modern risks. Some updates are already in force, while others will roll out over the next two years.
Here are the key reforms and why they matter:
1. AML/CFT Amendment Bill (in progress)
This bill is about modernising the regime and supporting a stronger risk-based approach. It includes:
- A mandatory requirement to risk-rate all new customers, in force since 1 June 2025.
- Expanded coverage for new business models such as online marketplaces.
- Updated definitions, including “beneficial owner” and “designated non-financial business or profession.”
- Revised deadlines for PTR submissions and risk assessments.
Why it matters: Even if you’ve started risk-rating, regulators expect consistency and audit-ready processes. Gaps in your approach will need fixing.
2. Supervisor and Levy Bill (drafting stage)
This bill will create a single AML/CFT supervisor (the DIA) and introduce an industry levy.
- DIA will oversee all reporting entities.
- The levy will target higher-risk sectors and reduce the burden on smaller firms.
- The new structure is intended to simplify oversight and reduce duplication.
Why it matters: You’ll benefit from one clear point of supervision, but you also need to plan ahead for the levy, which starts mid-2027.
3. Omnibus Amendment Bill (coming mid-2026)
This bill will deliver technical and operational refinements, aligning New Zealand with international FATF standards.
- Adjustments to SAR and PTR processes.
- Greater flexibility for Designated Business Groups (DBGs).
- Further streamlining of reporting requirements.
Why it matters: Some changes may reduce admin pressure, but others will raise expectations for accuracy and timeliness.
4. Statutes Amendment Bill (due end of 2025)
This bill makes smaller, practical updates.
- Limiting address verification to cases where risk justifies it.
- Extending the PTR submission window from 10 to 20 working days.
- Extending the SAR submission window for law firms from 3 to 5 working days.
Why it matters: These changes should ease day-to-day compliance tasks, but you’ll need to update your AML/CFT programme accordingly.
What you should be doing now
- Review your client risk-rating process and ensure it meets the mandatory requirements.
- Monitor the progress of these bills and take part in consultations where relevant.
- Update your AML/CFT programme, especially around CDD, SAR/PTR timelines, and record-keeping.
- Budget for the upcoming AML levy.
The reforms are rolling out in stages, but preparation now will save time, cost, and stress later. If you’d like to talk through what these changes mean for your business, get in touch. Our team can help you review your programme, update your processes, and plan with confidence.