Associate Justice Minister Nicole McKee says the new approach will "deliver more clarity and consistency for businesses". Photo: RNZ / Samuel Rillstone
The government wants to give police and regulators more enforcement powers to crack down on money laundering.
Associate Justice Minister Nicole McKee made the announcement as part of the government's overhaul of the Anti-Money Laundering/Countering Financing Terrorism (AML/CFT) regime.
The overhaul looks to create a "smarter, more agile" system, "one that targets criminals ability to launder money, while enabling New Zealand businesses to operate efficiently and competitively".
"This government is serious about targeting criminals, not tying up legitimate businesses in unnecessary red tape," McKee said.
"The new approach will deliver more clarity and consistency for businesses while maintaining a strong focus on preventing criminal misuse of the financial system."
The new legislation would establish a financial sanctions supervisory regime and look at starting a levy to help raise funds for efforts to counter the financing of terrorism and money laundering.
An upper limit - $5000 per transfer - would be set on how much cash can be transferred internationally and crypto ATMs will be banned, making it more difficult for criminals to convert cash to high-risk assets like crypto currencies.
Cabinet also agreed to enable the Financial Intelligence Unit (FIU) to order banks and other businesses subject to the AML/CFT Act to provide "ongoing relevant information on persons of interest."
"The FIU will also be able to order the production of important contextual information other businesses on the financial activities of persons of interest.
"This will enable the more effective development of the financial intelligence needed to bring the criminals to justice."
Targeted consultation with industry and stakeholders will begin shortly to inform the new national strategy and levy framework.
Acting Prime Minister David Seymour, speaking from Otago, added that the reforms meant better funding for AML compliance through a levy, and moving to a single supervisor.
"The Department of Internal Affairs will be the supervisor, instead of the Financial Markets Authority, the Reserve Bank and the DIA," said Seymour.
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