The Financial Action Task Force (FATF), the inter-governmental body established to combat money laundering, terrorist financing and related threats to the integrity of the international financial system, has now removed New Zealand from its regular follow-up process following significant developments in New Zealand's AML/CFT regime.
In 2009 FATF placed New Zealand on its regular follow-up process due to a report that identified non-compliance with key FATF recommendations, however since then the Government has focused on addressing these deficiencies by:
- Adopting the Anti-Money Laundering and Countering Financing of Terrorist Act 2009, which came into full force on 30 June 2013, and issuing comprehensive guidance material to assist reporting entities with the implementation of the Act
- Appointing three statutory supervisors for reporting entities under the Act: The Reserve Bank of New Zealand, the Financial Markets Authority and the Department of Internal Affairs
- Strengthening registration and licensing requirements for insurance and financial service providers (via the Insurance (Prudential Supervision) Act 2010 and Financial Service Providers (Registration and Dispute Resolution) Act 2008)
- Introducing a new cross-border cash reporting regime (under the AML/CFT Act).