The Financial Action Task Force (FATF) and the Asia-Pacific Group on Money Laundering (APG) have released a report assessing New Zealand’s AML/CFT framework. The report reviews the effectiveness of the country’s AML/CFT measures as well as its compliance with the FATF Recommendations. Some highlights from the report are mentioned below.
While New Zealand faces large-scale TF risks from overseas-based groups, the country has used a thorough risk assessment process to understand these risks. It also uses its financial intelligence and investigation tools effectively for ML/TF investigations and criminal asset recovery. Moreover, New Zealand intimately cooperates with its international partners to fight ML/TF.
However, the report suggests that New Zealand must disseminate beneficial ownership information in a more effective manner. There is also a need to strengthen the implementation of financial sanctions. Further, New Zealand’s businesses need to enhance their understanding of ML/TF risks and appropriate mitigation measures.