Stronger Measures to Fight Financial Crime

The government has announced a significant overhaul of the country's Anti-Money Laundering and Countering Financing of Terrorism (AML/CFT) regime. This move aims to empower police and regulators with stronger enforcement tools to combat money laundering and terrorism financing. Associate Justice Minister Nicole McKee highlighted the need for a "smarter, more agile" system that targets criminal activity without burdening legitimate businesses with excessive red tape.

McKee emphasized that the new approach will provide greater clarity and consistency for businesses while maintaining a robust focus on financial crime prevention. The government is committed to ensuring that the financial system is not misused by criminals, and this reform is a step in that direction.

New Legislation and Key Reforms

The new legislation includes the establishment of a financial sanctions supervisory regime and the introduction of a levy to fund efforts against money laundering and terrorism financing. A significant measure is the imposition of an upper limit of $5000 per international cash transfer and a ban on crypto ATMs. These steps aim to make it harder for criminals to convert cash into high-risk assets like cryptocurrencies.

Empowering Financial Intelligence

The Financial Intelligence Unit (FIU) will gain the authority to request ongoing relevant information from banks and other businesses under the AML/CFT Act. This will allow the FIU to gather crucial contextual information about persons of interest, aiding in the development of financial intelligence necessary to bring criminals to justice.

Streamlining Supervision

Acting Prime Minister David Seymour announced that the Department of Internal Affairs will become the sole supervisor for AML/CFT compliance, replacing the previous multi-agency approach involving the Financial Markets Authority and the Reserve Bank. Seymour noted that this change will lead to better funding for AML compliance through the new levy system, creating a more efficient regulatory environment.

Consultation and Strategy Development

Targeted consultations with industry stakeholders will begin soon to refine the new national strategy and levy framework. These discussions are expected to ensure that the reforms are practical and effective in addressing current and emerging financial threats.