Associate Justice Minister Nicole McKee says the Government is preparing the biggest overhaul of New Zealand’s anti-money laundering (AMT) regime since the laws were introduced in 2013, promising reduced compliance burdens, fewer low-risk checks and a new single-supervisor model for businesses.
Speaking at the Anti-Money Laundering Summit 2026, McKee said the current AML/CFT framework had become overly complex and inconsistent, with businesses often burdened by compliance processes that did little to stop organised crime. She cited examples including strict address verification requirements for low-risk customers and duplicated border cash reporting obligations.
McKee confirmed two amendment bills were expected to pass this week, including reforms easing due diligence rules for lower-risk family trusts and removing some duplicated reporting requirements. She also announced that from 1 July 2026 the Department of Internal Affairs will become the single AML supervisor, replacing the existing three-supervisor structure.
“The system will be more focused on making a difference in detecting and getting crimes off our streets, with less effort on low-risk transactions that do nothing to fight crime,” said McKee.
The minister said the changes would create a more agile and risk-based regulatory system, while a new industry levy would help fund intelligence gathering, guidance and future AML strategy work. She also confirmed a fourth reform bill is being prepared, which will include further reductions in customer due diligence requirements, updates to sanctions supervision and stronger enforcement tools targeting organised crime and terrorist financing.
“I am excited and proud that this reform programme is on track to deliver the most significant regulatory relief since the Act came into force in 2013.”
Another Swiss cheese overhaul.
The crime syndicate masquerading as a democratic government is the biggest money launderers of all.
Yeah its a pain in the ass that doesn’t target the right people/organizations.
In other words, they’re going to make banking more difficult for everyone and make using cash harder (they’d really like to get rid of cash all together). They’re going to increase surveillance and tracking of everyone, and track all the money that’s easily traceable – but the gangs and criminals won’t be the top of their list. Regular people are their target.
The hon Nicole McKee may consider the impact of the Forward Sales Contract instrument upon the lives and businesses of the country.
Should stop trying to catch the private sector but instead look into the Public sector, including extortion from IWI.