The Financial Action Task Force (FATF) has published the Fourth Round Mutual Evaluation Report (MER) about AML/CFT measures in New Zealand. Some highlights of this report are discussed below.
The FATF recognizes that New Zealand faces significant ML/TF threats from groups located abroad. Importantly, the country has been able to develop and implement an effective risk assessment system that helps it understand these risks. Moreover, New Zealand has demonstrated an effective application of financial intelligence and investigation tools to conduct ML investigations and aid related legal activities. The country has also demonstrated its ability to effectively collaborate with its international partners to meet common AML/CFT goals.
The FATF has stated that New Zealand’s AML/CFT measures for the non-financial sector are new, which is why businesses must learn to understand and address their ML/TF risks. The country’s AML/CFT supervisors can improve the use of sanctions to combat ML/TF. There is also a need to enhance resources to enable better supervision of the banking sector.
Overall, the FATF has found that New Zealand’s AML/CFT measures are performing well. However, there is still the need to improve the availability of beneficial ownership information, execute targeted financial sanctions and improve supervision.
Source: Financial Action Task Force