Measures seek to avoid needless paperwork, stop scams and fraud
Among other small yet significant adjustments across 41 Acts, the Statutes Amendment Bill amends the Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) Act 2009 to refrain from requiring customer address verification for standard customer due diligence.
In a news release, the government announced that legislation representing the first step in overhauling New Zealand’s AML/CFT system via a series of red-tape cuts has passed its final Parliamentary reading.
Nicole McKee, associate justice minister, explained that the amendment aims to:
“It’s particularly helpful for parents opening a bank account for their child, or for a recent widower whose spouse handled all the household bills,” McKee said in the news release.
McKee noted that the change more broadly seeks to ensure the country’s AML/CFT regime is risk-based, proportionate, and more effective at fighting actual crime.
“AML rules have been unclear for too long, and businesses have been forced into overly conservative, box-ticking compliance,” McKee said in the government’s news release.
McKee also brought attention to another recently announced measure to reduce red tape in the form of a ministerial exemption to the AML/CFT Act, which enables multiple banks to exchange AML-related information to safeguard New Zealanders from fraud and scams.
In another news release, McKee said this exemption aims to help banks act speedily, collaborate efficiently, and freeze scam transfers before money vanishes abroad. McKee added that it offers customers and businesses the freedom to think innovatively to tackle their problems.
According to McKee, under the AML rules, banks find it challenging to share information regarding ‘mule’ accounts, their associated details, and other known instances of fraud or scam activities.
“This is especially important in today’s fast-moving digital world, where scammers and fraudsters constantly evolve their tactics,” McKee said in the government’s news release. “Our regulatory settings need to be just as agile.”
The government recently announced the rollout of the ‘safe harbour’ legal shield, which aims to help banks, telecommunications providers, and digital platforms act swiftly to prevent possible online scams.
