Our country is a target for money launderers. It’s estimated that over $1 billion a year comes from drug dealing and fraud, and can be laundered through New Zealand businesses. Risking our reputation and economy. So, we’re making law changes to protect New Zealand and everything we love about it. Together, we can keep our money clean.
Lake Tekapo lies in the centre of the South Island of New Zealand in the heart of the Mackenzie District.
Our country is a target for money launderers. It’s estimated that over $1 billion a year comes from drug dealing and fraud, and can be laundered through New Zealand businesses. Risking our reputation and economy. So, we’re making law changes to protect New Zealand and everything we love about it. Together, we can keep our money clean.
To put it simply, money laundering is a crime. It’s 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.
It’s estimated that over $1 billion a year comes from drug dealing and fraud, and can be laundered through New Zealand businesses.
Money laundering is happening every day across the country. It’s estimated that over $1 billion a year comes from drug dealing and fraud, and can be laundered through New Zealand businesses. However, the true cost and impact is many times that figure when you factor in all the crimes that generate “dirty” money and the suffering they cause.
People who finance terrorism also use these methods to send money to violent causes and to disguise who is providing and receiving the money. While the likelihood of terrorism financing is low, the potential consequences are significant.
Wharariki Beach is a beach west of Cape Farewell, the northernmost point of the South Island of New Zealand.
Making it harder for criminals to launder money provides a significant disincentive to carrying out the criminal activity in the first place.
New Zealand has had Anti-Money Laundering and Countering Financing Terrorism laws operating since 2013. These laws applied to banks, casinos, financial institutions and some trust and company service providers.
We’re now extending these laws to include:
Lake Kaniere is one of the most beautiful lakes in New Zealand situated 19km inland from Hokitika on the West Coast of the South Island of New Zealand.
Any business that provides these services will need to put systems and processes in place to prevent criminals from trying to exploit them, and ensure they can identify their customers, know their addresses and, in some cases, know the sources of their customers’ funds.
Additionally, all businesses and service providers covered under the AML/CFT Act (including those from the first phase) will now have reporting requirements that relate to particular transactions as well as suspicious activities.
Generally speaking, customers and users of these services don’t need to do anything. Simply be aware that some extra information may be required from you during these transactions. Even if you have been a customer of these businesses for a long time, they may need to ask you to help confirm that you are who you say you are and, in some cases, tell them where the money you are going to use has come from.
The information you are asked to provide will vary depending on whether you are doing business as an individual or part of a partnership, company, public body, estate or trust.
IMPORTANT TO REMEMBER
Businesses are not doing this because they think you are laundering money – they are doing it to help protect everyone and because they are required to under the law. Together, we can help keep our money clean.
Lake Tekapo