Strategi Compliance update: key changes in New Zealand’s AML/CFT reforms
We’re pleased to share important updates on the ongoing reforms to New Zealand’s Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime. In early February, the latest Cabinet papers were released, outlining changes aimed at streamlining compliance, reducing costs, and ensuring New Zealand remains aligned with international AML standards.
The reforms are structured around three key areas:
- Reducing compliance burden: Some compliance requirements will be eased, particularly for businesses dealing with low-risk customers. Key changes include relaxing customer due diligence (CDD) obligations for low-risk trusts, removing the need for address verification for most customers, and extending reporting timeframes for transactions and suspicious activity. These updates should reduce compliance costs while maintaining the integrity of the AML/CFT regime.
- Strengthening AML governance: Regulatory oversight will be restructured to improve efficiency. AML/CFT supervision will be consolidated under a single central authority, reducing duplication and improving decision-making. A new levy funding model will also be introduced to better allocate resources and support focused regulatory oversight.
- Addressing regulatory gaps: The government is strengthening New Zealand’s AML/CFT framework to prevent the risk of being grey-listed by the Financial Action Task Force (FATF). Measures include stricter CDD requirements, the introduction of a trust register, and expanded law enforcement powers to improve the ability to investigate and prosecute money laundering and terrorism financing.
Legislation to support these reforms will be introduced in stages, with the first bills expected between March 2025 and April 2026.
At Strategi Compliance, we understand these changes may feel complex. Our team is here to help you navigate the reforms and ensure your business remains compliant. If you need personalised advice, get in touch with us today.