|
|
Sanctions:
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
New Zealand is not a major regional or offshore financial center,
and most financial activities are domestic. The financial sector
includes a small number of registered banks, most of which are
Australian-owned, as well as non-bank deposit takers, insurance
companies, securities dealers, money remitters, and currency
exchangers. New Zealand also has a small number of casinos,
which operate gaming machines and a variety of table games.
Money laundering cases are infrequent in New Zealand. However,
authorities note that it is difficult to estimate the extent of money
laundering activities, since every serious crime that generates
proceeds could lead to a money laundering offense.
Money laundering mostly occurs through the financial system, but
the purchase of real estate and other high value assets, as well
as the use of foreign exchange dealers has become an
increasingly popular method of laundering money. Narcotics
proceeds (mostly from methamphetamine and cannabis sales)
and fraud-associated activity (primarily Internet-banking fraud)
are the primary sources of illicit funds. International organized
criminal elements, mostly from Asia, are known to operate in New
Zealand, but not to a wide extent. New Zealand is a low threat
environment for terrorist finance. New Zealand is actively taking
measures to comply with international standards and
strengthening its ability to detect and deter money laundering and
terrorist financing.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, exchange offices, and money service
businesses; credit card companies; mortgage lenders; casinos;
securities brokers/dealers; safekeeping; asset and individual or
collective portfolio managers; and, life insurance or other
investment related insurance
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, exchange offices, and money service
businesses; credit card companies; mortgage lenders; casinos;
securities brokers/dealers;, safekeeping; asset and individual or
collective portfolio managers; and, life insurance or other
investment related insurance
Number of STRs received and time frame: Approximately 3,040
(January 1-August 31, 2010)
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
New Zealand is a member of the Financial Action Task Force
(FATF) and the Asia/Pacific Group on Money Laundering, a FATF-
style regional body. Its most recent mutual evaluation can be
found here: http://www.fatf-gafi.org/dataoecd/1/61/43998312.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
With the enactment of the AML/CFT legislation (AML/CFT Act),
New Zealand is working to bring its legal framework in line with
international standards. Although the AML/CFT Act is in force,
these requirements do not come into full effect until December
2012 to give industry time to come into compliance. The
effectiveness of this legislation and its implementation will not be
fully known until that time.
The AML/CFT Act allows for civil penalties as decided by the
court, which is payable to the Crown or to any other person
specified by the Court.
New Zealand and the United States do not require a bilateral
mutual legal assistance treaty (MLAT) to enter into a mutual
assistance relationship. The United States has been designated
as a “prescribed foreign country” in New Zealand’s Mutual
Assistance in Criminal Matters Act 1992, enabling New Zealand to
process requests for assistance from the United States on a
reciprocal basis. In practice, New Zealand and U.S. authorities
have a good record of cooperation and information sharing in this
area.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
New Zealand is a source country for underage girls subjected to
sex trafficking within the country, and a destination country for
foreign men and women in forced labor. New Zealand is
reportedly a destination country for women from Asian countries,
such as Hong Kong, Thailand, Taiwan, and China, and Eastern
Europe trafficked into forced prostitution, though no new
substantive information about such cases was discovered in the
past year. According to a press report during the year, women,
including some from Malaysia, are recruited by labor agents, but
upon arrival in New Zealand, are handed over to brothel owners,
who confiscate their passports and force them into prostitution for
up to 18 hours a day to repay the “loan” of recruitment and
transportation costs. Child trafficking victims are found engaging
in prostitution illegally in brothels and off the street, some being
closely controlled by local gangs. Asians and Pacific Islanders
migrate to New Zealand voluntarily to work legally or illegally in
the agricultural sector, and women from the Philippines migrate
legally to work as nurses. Some foreign workers report being
charged excessive and escalating recruitment fees, experiencing
unjustified salary deductions, restrictions on their movement,
confiscation of passports, and altered contracts or working
conditions without their permission – all indicators of human
trafficking. According to a press report and the United Nations
Inter-Agency Project on human trafficking, there were concerns
that some fishermen from Indonesia, Vietnam, and elsewhere in
Southeast Asia are allegedly victims of forced labor in New
Zealand waters; these men may have experienced conditions
including passport confiscation, significant debts, physical
violence and abuse, and are often forced to work a seven-day
work week. No independent research has been conducted to
determine the full extent of the trafficking problem in New Zealand.
The Government of New Zealand fully complies with the minimum
standards for the elimination of trafficking. The government has in
the past prosecuted traffickers under a range of laws; however,
the government did not prosecute or convict any offenders of
trafficking during the year, nor did it identify or assist any
trafficking victims during the reporting period. The government
did, however, make efforts during the year to raise public
awareness of human trafficking through an anti-trafficking website
and trafficking brochures.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: New Zealand continued working cooperatively with the
United States and other countries on bilateral, regional, and
global levels to fight terrorism, including nuclear terrorism. New
Zealand particularly took an active leadership role in the Asia-
Pacific region in multilateral counterterrorism organizations. New
Zealand focused a great deal of effort on helping build the
capacity of small pacific island countries in all areas of
counterterrorism and actively contributed to international efforts to
counter the radicalization of Islam and violent extremism.
Countering Terrorist Finance: New Zealand is not a major regional
or offshore financial center and was a low threat environment for
terrorist finance. Under the Financial Transaction Reporting Act
1996, financial institutions were required to report transactions
suspected of being linked to money-laundering to the New
Zealand Police Financial Intelligence Unit (FIU). In 2010, the FIU
received approximately 3,040 Suspicious Transaction Reports.
In February 2010, New Zealand announced its first designations
of non-UN listed terrorist entities; 14 non-UN listed entities were
designated. All designated terrorist entities are subject to criminal
sanctions under New Zealand law and those prosecutions based
on non-UN lists are subject to court challenge.
New Zealand provided funding for the Asia-Pacific Group on
Money Laundering’s 2010 technical assistance and training
program with Pacific Island countries.
Regional and International Cooperation: New Zealand actively
worked in the Asia-Pacific region on counterterrorism issues and
demonstrated a strong commitment to building the
counterterrorism capabilities of the small island states of the
Pacific region, in particular, legislative and operational capacity
building projects.
On November 16-18, New Zealand and the United States co-
hosted the Trans-Pacific Symposium on Dismantling
Transnational Illicit Networks in Christchurch. Over one hundred
officials from 23 Pacific Rim economies and several international
organizations participated. The event brought together law
enforcement, customs, and other agencies from around the
Pacific basin to discuss how to best counter transnational illicit
activity, including terrorist-related threats. The event concluded
with the Co-Chairs’ Summary of Outcomes document in which
participants agreed to increase cooperation in the region.
On March 29-30, New Zealand hosted the Second ASEAN
Regional Forum (ARF) inter-session meeting on maritime security
in Auckland. New Zealand, Indonesia, and Japan jointly chaired
the meeting, which included 150 delegates representing the 26
member nations of the ARF with the exception of North Korea.
New Zealand continued its active contribution to the Global
Initiative to Combat Nuclear Terrorism (GICNT) with a particular
focus on supporting GICNT activities in the Asia-Pacific region
and working with GICNT partners to develop a “model GICNT
tabletop exercise”.
Countering Radicalization and Violent Extremism: The
Government of New Zealand continued its funding of counter-
radicalization work in Southeast Asia out of the Ministry of Foreign
Affairs’ Asia Security Fund. Most of New Zealand’s funding went to
cross-cultural and interfaith projects focused on youth, media,
and education. The government also contributed to the
development of ‘Know Your Neighbors,’ a regional education
resource aimed at high school students in Southeast Asia and
Australasia that sought to build greater understanding and
respect of different cultures and religions, thereby helping to
bridge some of the divides between societies around the region.
None applicable.
____________________________________________________
Offshore Jurisdiction Blacklists:
Information unavailable.
____________________________________________________
US State Department Money Laundering Report - 2011:
New Zealand is not a major regional or offshore financial center,
and most financial activities are domestic. The financial sector
includes a small number of registered banks, most of which are
Australian-owned, as well as non-bank deposit takers, insurance
companies, securities dealers, money remitters, and currency
exchangers. New Zealand also has a small number of casinos,
which operate gaming machines and a variety of table games.
Money laundering cases are infrequent in New Zealand. However,
authorities note that it is difficult to estimate the extent of money
laundering activities, since every serious crime that generates
proceeds could lead to a money laundering offense.
Money laundering mostly occurs through the financial system, but
the purchase of real estate and other high value assets, as well
as the use of foreign exchange dealers has become an
increasingly popular method of laundering money. Narcotics
proceeds (mostly from methamphetamine and cannabis sales)
and fraud-associated activity (primarily Internet-banking fraud)
are the primary sources of illicit funds. International organized
criminal elements, mostly from Asia, are known to operate in New
Zealand, but not to a wide extent. New Zealand is a low threat
environment for terrorist finance. New Zealand is actively taking
measures to comply with international standards and
strengthening its ability to detect and deter money laundering and
terrorist financing.
DO FINANCIAL INSTITUTIONS ENGAGE IN CURRENCY
TRANSACTIONS RELATED TO INTERNATIONAL NARCOTICS
TRAFFICKING THAT INCLUDE SIGNIFICANT AMOUNTS OF US
CURRENCY; CURRENCY DERIVED FROM ILLEGAL SALES IN
THE U.S.; OR THAT OTHERWISE SIGNIFICANTLY AFFECT THE
U.S.: NO
CRIMINALIZATION OF MONEY LAUNDERING:
“All serious crimes” approach or “list” approach to predicate
crimes: All serious crimes
Legal persons covered: criminally: YES civilly: YES
CRIMINALIZATION OF TERRORIST FINANCING:
Ability to freeze terrorist assets without delay: YES
UN lists of designated terrorists or terrorist entities distributed to
financial institutions: YES
(Please refer to the Department of State’s Country Reports on
Terrorism, which can be found here: http://www.state.
gov/s/ct/rls/crt/)
KNOW-YOUR-CUSTOMER RULES:
Covered entities: Banks, exchange offices, and money service
businesses; credit card companies; mortgage lenders; casinos;
securities brokers/dealers; safekeeping; asset and individual or
collective portfolio managers; and, life insurance or other
investment related insurance
Enhanced due diligence procedures for PEPs: Foreign: YES
Domestic: YES
SUSPICIOUS TRANSACTION REPORTING REQUIREMENTS:
Covered entities: Banks, exchange offices, and money service
businesses; credit card companies; mortgage lenders; casinos;
securities brokers/dealers;, safekeeping; asset and individual or
collective portfolio managers; and, life insurance or other
investment related insurance
Number of STRs received and time frame: Approximately 3,040
(January 1-August 31, 2010)
Number of CTRs received and time frame: Not applicable
MONEY LAUNDERING CRIMINAL
PROSECUTIONS/CONVICTIONS:
Prosecutions: Not available
Convictions: Not available
Assets forfeited: criminally: Not available civilly: Not available
RECORDS EXCHANGE MECHANISM:
With U.S.: YES
With other governments/jurisdictions: YES
New Zealand is a member of the Financial Action Task Force
(FATF) and the Asia/Pacific Group on Money Laundering, a FATF-
style regional body. Its most recent mutual evaluation can be
found here: http://www.fatf-gafi.org/dataoecd/1/61/43998312.pdf
ENFORCEMENT AND IMPLEMENTATION ISSUES AND
COMMENTS:
With the enactment of the AML/CFT legislation (AML/CFT Act),
New Zealand is working to bring its legal framework in line with
international standards. Although the AML/CFT Act is in force,
these requirements do not come into full effect until December
2012 to give industry time to come into compliance. The
effectiveness of this legislation and its implementation will not be
fully known until that time.
The AML/CFT Act allows for civil penalties as decided by the
court, which is payable to the Crown or to any other person
specified by the Court.
New Zealand and the United States do not require a bilateral
mutual legal assistance treaty (MLAT) to enter into a mutual
assistance relationship. The United States has been designated
as a “prescribed foreign country” in New Zealand’s Mutual
Assistance in Criminal Matters Act 1992, enabling New Zealand to
process requests for assistance from the United States on a
reciprocal basis. In practice, New Zealand and U.S. authorities
have a good record of cooperation and information sharing in this
area.
____________________________________________________
US State Dept Narcotics Report 2011 (introduction):
No report available
____________________________________________________
US State Dept Trafficking in Persons Report 2011
(introduction):
(Tier 1)
New Zealand is a source country for underage girls subjected to
sex trafficking within the country, and a destination country for
foreign men and women in forced labor. New Zealand is
reportedly a destination country for women from Asian countries,
such as Hong Kong, Thailand, Taiwan, and China, and Eastern
Europe trafficked into forced prostitution, though no new
substantive information about such cases was discovered in the
past year. According to a press report during the year, women,
including some from Malaysia, are recruited by labor agents, but
upon arrival in New Zealand, are handed over to brothel owners,
who confiscate their passports and force them into prostitution for
up to 18 hours a day to repay the “loan” of recruitment and
transportation costs. Child trafficking victims are found engaging
in prostitution illegally in brothels and off the street, some being
closely controlled by local gangs. Asians and Pacific Islanders
migrate to New Zealand voluntarily to work legally or illegally in
the agricultural sector, and women from the Philippines migrate
legally to work as nurses. Some foreign workers report being
charged excessive and escalating recruitment fees, experiencing
unjustified salary deductions, restrictions on their movement,
confiscation of passports, and altered contracts or working
conditions without their permission – all indicators of human
trafficking. According to a press report and the United Nations
Inter-Agency Project on human trafficking, there were concerns
that some fishermen from Indonesia, Vietnam, and elsewhere in
Southeast Asia are allegedly victims of forced labor in New
Zealand waters; these men may have experienced conditions
including passport confiscation, significant debts, physical
violence and abuse, and are often forced to work a seven-day
work week. No independent research has been conducted to
determine the full extent of the trafficking problem in New Zealand.
The Government of New Zealand fully complies with the minimum
standards for the elimination of trafficking. The government has in
the past prosecuted traffickers under a range of laws; however,
the government did not prosecute or convict any offenders of
trafficking during the year, nor did it identify or assist any
trafficking victims during the reporting period. The government
did, however, make efforts during the year to raise public
awareness of human trafficking through an anti-trafficking website
and trafficking brochures.
For full report click here
____________________________________________________
US State Dept Terrorism Report 2010
Overview: New Zealand continued working cooperatively with the
United States and other countries on bilateral, regional, and
global levels to fight terrorism, including nuclear terrorism. New
Zealand particularly took an active leadership role in the Asia-
Pacific region in multilateral counterterrorism organizations. New
Zealand focused a great deal of effort on helping build the
capacity of small pacific island countries in all areas of
counterterrorism and actively contributed to international efforts to
counter the radicalization of Islam and violent extremism.
Countering Terrorist Finance: New Zealand is not a major regional
or offshore financial center and was a low threat environment for
terrorist finance. Under the Financial Transaction Reporting Act
1996, financial institutions were required to report transactions
suspected of being linked to money-laundering to the New
Zealand Police Financial Intelligence Unit (FIU). In 2010, the FIU
received approximately 3,040 Suspicious Transaction Reports.
In February 2010, New Zealand announced its first designations
of non-UN listed terrorist entities; 14 non-UN listed entities were
designated. All designated terrorist entities are subject to criminal
sanctions under New Zealand law and those prosecutions based
on non-UN lists are subject to court challenge.
New Zealand provided funding for the Asia-Pacific Group on
Money Laundering’s 2010 technical assistance and training
program with Pacific Island countries.
Regional and International Cooperation: New Zealand actively
worked in the Asia-Pacific region on counterterrorism issues and
demonstrated a strong commitment to building the
counterterrorism capabilities of the small island states of the
Pacific region, in particular, legislative and operational capacity
building projects.
On November 16-18, New Zealand and the United States co-
hosted the Trans-Pacific Symposium on Dismantling
Transnational Illicit Networks in Christchurch. Over one hundred
officials from 23 Pacific Rim economies and several international
organizations participated. The event brought together law
enforcement, customs, and other agencies from around the
Pacific basin to discuss how to best counter transnational illicit
activity, including terrorist-related threats. The event concluded
with the Co-Chairs’ Summary of Outcomes document in which
participants agreed to increase cooperation in the region.
On March 29-30, New Zealand hosted the Second ASEAN
Regional Forum (ARF) inter-session meeting on maritime security
in Auckland. New Zealand, Indonesia, and Japan jointly chaired
the meeting, which included 150 delegates representing the 26
member nations of the ARF with the exception of North Korea.
New Zealand continued its active contribution to the Global
Initiative to Combat Nuclear Terrorism (GICNT) with a particular
focus on supporting GICNT activities in the Asia-Pacific region
and working with GICNT partners to develop a “model GICNT
tabletop exercise”.
Countering Radicalization and Violent Extremism: The
Government of New Zealand continued its funding of counter-
radicalization work in Southeast Asia out of the Ministry of Foreign
Affairs’ Asia Security Fund. Most of New Zealand’s funding went to
cross-cultural and interfaith projects focused on youth, media,
and education. The government also contributed to the
development of ‘Know Your Neighbors,’ a regional education
resource aimed at high school students in Southeast Asia and
Australasia that sought to build greater understanding and
respect of different cultures and religions, thereby helping to
bridge some of the divides between societies around the region.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| Further Tables |
|
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
*Please note that FATF deems that a country has significant aml deficiencies if any
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
of the 'Core' Recommendations, R1, R5, R10, R13, SRII, or SRIV are rated either
Partially of Non-Compliant. These are marked in red.
For FATF to remove a country from the regular follow-up process, it has to be rated
Compliant or Largely Compliant in the above mentioned Core Recommendations
and the following Key Recommendations: -
R3, R4, R23, R26, R35, R36, R40, SRI, SRIII, SRV
Please also note that any risk assessment should take into consideration all
follow-up reports.
| NEW ZEALAND |
| KnowYourCountry |
|
___________________________________________________
AML News Updates / Relevant Information
August 8, 2011 - EU drops New Zealand from list of due diligence
equivalent jurisdictions
Read Statement (pdf file)
June 26, 2011 - New report by the Global Forum on Transparency and
Exchange of Information to evaluate the country's legal and regulatory
frameworks and implementation re exchange of information is made
available.
Read Report
May 26, 2011 - Recent statement on the economy extracted from IMF
report: -
Read Statement (internal link)
|
Key Findings from last Mutual Evaluation Report
On 25 June 2009, the Anti-Money Laundering and Countering Financing
of Terrorism Bill (AML/CFT Bill) was introduced in Parliament for its first
reading. It was referred to Select Committee thereafter and reported
back to Parliament on 14 September 2009. The AML/CFT Bill was
enacted on 15 October 2009.
Between 2004 and 2008, 197 investigation files associated with money
laundering were created. Over 75% of the files investigated by the New
Zealand Police (NZ Police) over this period related to fraud-associated
activity (predominantly Internet-banking fraud). Drug-related activity is
the second most investigated offence associated with money laundering
(ML), making up 10% of the total ML associated files. Other common
predicates were robbery, theft, blackmail, and burglary.
Most money laundering occurs through the financial system; however,
the complexity usually depends on the sophistication of the offenders
involved. There appears to be a higher degree of sophistication in
laundering the proceeds of crime now than in previous years. Since
2007, the purchase of real estate, the use of professional services and
foreign exchange dealers have been popular means to launder funds.
Prior to this, the majority of proceeds of crime were laundered through
retail bank accounts.
The New Zealand authorities consider the risk of terrorist financing (FT)
to be low. This assessment results from the investigation of all
suspicious transaction reports (STRs) and suspicious property reports
(SPRs) submitted to the financial intelligence unit (FIU) pursuant to the
Terrorism Suppression Act (TSA). None of these investigations found
any confirmed evidence of FT and, consequently, there have been no
prosecutions or convictions for FT in New Zealand.
The ML offences are largely in line with international requirements, but
for a few technical deficiencies. The statistics demonstrate that the
offence is being actively enforced. The confiscation regime is generally
sound, and is put to frequent and effective use. Confiscation without
conviction (civil forfeiture) is not currently available in New Zealand, but
is provided for in the Criminal Proceeds (Recovery) Act, which will come
into force on 1 December 2009.
The Ministry of Justice is the lead agency in New Zealand for AML/CFT
measures. It is co ordinating and implementing the current AML/CFT
review that is being undertaken by the New Zealand Government. New
Zealand has adequate and effective mechanisms in place for domestic
co ordination and co-operation, both at the policy and operational levels.
Overall, New Zealand’s measures relating to criminalisation, provisional
measures, confiscation and international co-operation are quite robust.
However, compliance with the FATF standards relating to preventive
measures for both the financial and designated non-financial businesses
and professions (DNFBP) sectors shows a number of essential gaps.
Important elements are not addressed in either law, regulation, or other
enforceable means. New Zealand’s AML/CFT reforms, which are meant
to substantially address these issues, should be implemented as soon
as possible.
Key recommendations made to New Zealand include: continue the
initiated reforms of the AML/CFT system; ensure that the AML/CFT Bill
currently before Parliament is enacted without undue delay enabling the
introduction of broader preventative measures applicable to all financial
institutions and DNFBP; enhance regulation and supervision for
AML/CFT purposes; ensure that the competent authorities which are
ultimately designated to ensure compliance with AML/CFT requirements
are provided with adequate funding, staff and technical resources, and
AML/CFT training; introduce licensing requirements and comprehensive
‘fit and proper’ criteria for all financial institutions (not just banks); and
introduce effective, proportionate and dissuasive civil or administrative
sanctions, applicable to financial institutions and DNFBP, for failure to
comply with AML/CFT requirements.
On 25 June 2009, the Anti-Money Laundering and Countering Financing
of Terrorism Bill (AML/CFT Bill) was introduced in Parliament for its first
reading. It was referred to Select Committee thereafter and reported
back to Parliament on 14 September 2009. The AML/CFT Bill was
enacted on 15 October 2009.
Between 2004 and 2008, 197 investigation files associated with money
laundering were created. Over 75% of the files investigated by the New
Zealand Police (NZ Police) over this period related to fraud-associated
activity (predominantly Internet-banking fraud). Drug-related activity is
the second most investigated offence associated with money laundering
(ML), making up 10% of the total ML associated files. Other common
predicates were robbery, theft, blackmail, and burglary.
Most money laundering occurs through the financial system; however,
the complexity usually depends on the sophistication of the offenders
involved. There appears to be a higher degree of sophistication in
laundering the proceeds of crime now than in previous years. Since
2007, the purchase of real estate, the use of professional services and
foreign exchange dealers have been popular means to launder funds.
Prior to this, the majority of proceeds of crime were laundered through
retail bank accounts.
The New Zealand authorities consider the risk of terrorist financing (FT)
to be low. This assessment results from the investigation of all
suspicious transaction reports (STRs) and suspicious property reports
(SPRs) submitted to the financial intelligence unit (FIU) pursuant to the
Terrorism Suppression Act (TSA). None of these investigations found
any confirmed evidence of FT and, consequently, there have been no
prosecutions or convictions for FT in New Zealand.
The ML offences are largely in line with international requirements, but
for a few technical deficiencies. The statistics demonstrate that the
offence is being actively enforced. The confiscation regime is generally
sound, and is put to frequent and effective use. Confiscation without
conviction (civil forfeiture) is not currently available in New Zealand, but
is provided for in the Criminal Proceeds (Recovery) Act, which will come
into force on 1 December 2009.
The Ministry of Justice is the lead agency in New Zealand for AML/CFT
measures. It is co ordinating and implementing the current AML/CFT
review that is being undertaken by the New Zealand Government. New
Zealand has adequate and effective mechanisms in place for domestic
co ordination and co-operation, both at the policy and operational levels.
Overall, New Zealand’s measures relating to criminalisation, provisional
measures, confiscation and international co-operation are quite robust.
However, compliance with the FATF standards relating to preventive
measures for both the financial and designated non-financial businesses
and professions (DNFBP) sectors shows a number of essential gaps.
Important elements are not addressed in either law, regulation, or other
enforceable means. New Zealand’s AML/CFT reforms, which are meant
to substantially address these issues, should be implemented as soon
as possible.
Key recommendations made to New Zealand include: continue the
initiated reforms of the AML/CFT system; ensure that the AML/CFT Bill
currently before Parliament is enacted without undue delay enabling the
introduction of broader preventative measures applicable to all financial
institutions and DNFBP; enhance regulation and supervision for
AML/CFT purposes; ensure that the competent authorities which are
ultimately designated to ensure compliance with AML/CFT requirements
are provided with adequate funding, staff and technical resources, and
AML/CFT training; introduce licensing requirements and comprehensive
‘fit and proper’ criteria for all financial institutions (not just banks); and
introduce effective, proportionate and dissuasive civil or administrative
sanctions, applicable to financial institutions and DNFBP, for failure to
comply with AML/CFT requirements.
| Last Updated: 16 April 2012 |