Have your say on the Ministry of Justice Survey
Wellington, October 6, 2021
The Ministry of Justice is seeking the views of the people on New Zealand’s Anti Money Laundering Laws.
Brendan Gage, General Manager (Criminal Justice) at the Ministry said that the Anti-Money Laundering and Countering Financing of Terrorism Act 2009 helps keep New Zealand safe from money laundering and terrorism financing.
The high cost of fraud
“We estimate that more than $1 billion a year comes from drug dealing and fraud and can be laundered through New Zealand businesses. The true cost and impact are much greater when you consider the crimes that generate ‘dirty’ money and how they impact New Zealand communities,” he said.
Mr Gage said that terrorism financing is a crime, and terrorist financiers often use a mixture of money gained from legitimate sources (e.g. wages or donations) as well as illicit funds.
“Terrorist financiers will use similar techniques to money launderers to cover their tracks and avoid detection. While the likelihood of terrorism financing in New Zealand is lower, the potential consequences can be severe,” he said.
The Laundering process
Money laundering is the process criminals use to ‘clean’ the money they make from crimes such as fraud, dealing in illegal drugs, and trafficking.
By making the money look like it comes from a legitimate source, they can cover their tracks and avoid detection. Criminal organisations and people who finance terrorism target businesses and countries they believe have weak systems and controls that they can exploit.
Every time someone buys a house or a car, or moves money around to different banks, or sends it back home, it is an opportunity to launder illegal money.
The effect on common people
Mr Gage said that while the Anti-Money Laundering Laws are very important, they can make things more difficult, or cause frustration in certain circumstances.
“We want to hear about people’s experience such as when buying a house or dealing with their bank. Have we got the balance right about protecting people’s privacy? Businesses need to collect a large amount of personal information from their customers, and we want to make sure the Act protects people’s privacy,” he said.
Has it become harder for you to open or maintain bank accounts, or has it become harder or more expensive to send money to family and friends overseas?
This could happen if you don’t have easy access to documents that prove who you are, or where you live.
Comprehensive Review
In July 2021, the government asked the Ministry of Justice to review the country’s Anti-Money Laundering Laws.
Mr Gage said that the Review will be of interest to businesses and professions that play a part in New Zealand’s anti-money laundering regime, such as law firms, real estate agents and banks. It will also be of interest to people who send money overseas or buy property or high-value goods.
“We have had active Anti-Money Laundering Laws since 2013 when the Act came into force. This Review is an opportunity to look back on the past eight years and ask ourselves: Have we got this right? Does the regime effectively achieve its purposes? What can we do better?” Mr Gage said.
Government agencies that have roles in the AML/CFT regime, such as the Department of Internal Affairs, Financial Markets Authority, New Zealand Customs Service, New Zealand Police, and Reserve Bank of New Zealand are assisting the Ministry of Justice in the Review.
“We want to hear from all organisations, professions and individuals affected by the Anti-Money Laundering Laws, which they can do though through an online survey, by email, or post. New Zealanders are proud that we live in one of the least corrupt countries in the world. We want to make New Zealand the most difficult place for organised criminal groups to operate, and we do not want criminals ruining our financial system and economy or lowering our reputation around the world with countries with whom we trade,” Mr Gage said.
Public consultation will close on December 3, 2021, with a report to the government due in June 2022. Information, including the Consultation Document and the online survey, will be available at www.justice.govt.nz/amlcft-review
Public feedback
You can have your say by reviewing the Consultation Document and Summary Document and answering the questions in the online survey that are relevant to you, your business or your profession. The survey is divided into sections to make it easier to find the questions you want to answer. You can email your feedback to: aml@justice.govt.nz
You can post your feedback to AML/CFT Consultation Team, Ministry of Justice, SX 10088, Wellington 6140.
The closing date for submissions and completed online surveys is 5 pm, Friday, December 3, 2021. However, if you need more time to respond, please contact the Ministry.
Take part in the Anti-Money Laundering/Countering Financing of Terrorism public survey (external link)
https://www.justice.govt.nz/about/news-and-media/news/what-do-you-think-of-our-anti-money-laundering-laws/
