The government has announced its intentions to reform anti-money laundering laws in order to support small businesses.
According to Associate Justice Minister Nicole McKee, the existing anti-money laundering laws, which mandated that financial service providers to report any domestic transactions exceeding $10,000 to law enforcement, were overly complex.
“The reforms will deliver a critical government priority to cut red tape and improve the quality of regulation,” McKee said.
McKee also highlighted the goal of offering regulatory relief to both businesses and the public, which will empower law enforcement to effectively tackle organised crime while also maintaining New Zealand’s esteemed international standing.
She stated that the proposed reforms would provide “the most significant regulatory relief” since the Anti-Money Laundering and Countering Financing of Terrorism Act was enacted 11 years ago.
The reforms will be implemented in three phases:
- The first phase is already significantly progressed and will provide immediate relief through two bills. The first, the Statutes Amendment Bill, has already been presented to Parliament.
- The second phase will concentrate on structural changes and a sustainable funding model to establish a more effective and efficient system.
- The third and final component will involve further regulatory adjustments to adopt international standards and create a more risk-based approach.
“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,” McKee added.
Meanwhile, Labour’s justice spokesperson, Duncan Webb, stated that the existing legislation is functioning effectively. He noted that he has not received feedback indicating that the current regulations are overly burdensome for businesses.